Audit 400143

SIGNIFICANT DEFICIENCIES Finding Number 2024-003 Criteria Entities that receive federal grants or programs are required to know the source of all grants and awards as the requirements of the U.S. Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Rule (Uniform Guidance). Entities must be able to document the key components of the schedule of expenditures of federal awards. Condition The schedule of expenditures of federal awards was not initially provided by management. As part of the audit procedures, the audit firm located the key information required (organized by federal program or agency, details of sub-recipients, pass through entities and their number, or CFDA numbers) under Uniform Guidance. Context Management has all the information to complete the schedule of federal awards in compliance with the Uniform Guidance but had not compiled it prior to the start of the audit. Cause Johnson County, Illinois has not had an audit requirement under Uniform Guidance in several years and therefore the current treasurer has not had to previously provide the detailed information. Effect The audit firm assisted with compiling all the necessary information to ensure the schedule of federal awards was complete and accurate. In addition, it was the auditor that determined they were required to have an audit of federal funds under Uniform Guidance.Recommendation We recommend management incorporate proper training and education on the information and amounts that must be outlined in the schedule of federal awards and further we recommend that management prepare the schedule at least annually including in those years when they are not required to have an audit of federal awards under the Uniform Guidance. Corrective Action Plan Management will prepare the schedule of expenditures of federal awards as part of the year end closing process each year to determine their audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process. Official Responsible for Ensuring the Corrective Action Plan is Implemented Mitch McClellan, Treasurer Planned Completion Date for the Corrective Action Plan The changes will be implemented with the fiscal year ended November 30, 2025 and forward.