Audit 407288

Criteria or specific requirement: As a recipient of this direct federal award, the County is required to comply with all applicable mandatory compliance requirements. According to the OMB Compliance Supplement, this federal award includes both financial reporting and performance reporting requirements. Condition: The County’s year-end financial report submitted to the grantor indicated that the project was completed as of December 31, 2025, and that the full grant award had been expended. Additionally, the performance report submitted for the period ending July 31, 2025, indicated that all equipment had been purchased and delivered. However, according to the County’s financial records, unexpended grant funds remained as of December 31, 2025, because the final program deliverables had not yet been received or invoiced. Cause: The required reports submitted to the federal agency were not completed in accordance with the underlying supporting records. Effect or potential effect: The County’s internal financial records did not support the amounts and information reported in the financial report and performance report. Questioned costs: No questioned costs that are required to be reported. Context: The County was awarded a federal grant to acquire police equipment during the year ended December 31, 2024, with a project end date of March 31, 2026. As the equipment order was being initiated in early 2025, federal grant awards were temporarily frozen. After the federal grant funds were unfrozen, the County took immediate steps to proceed with ordering equipment for the various towns within its boundaries. However, a delay in communication from one town resulted in the final equipment being received after year-end. Although the County incorrectly reported that all funds had been fully expended prior to year-end, the remaining equipment was received and expended prior to the project end date. Repeat finding: Not a repeat finding. Recommendation: We recommend that the County implement procedures to ensure that all future financial and performance reports are accurate and adequately supported by the County’s internal financial records. Views of Responsible Officials: This was a unique circumstance where federal awards were being suspended by our federal government and then reinstated. Our goal was to draw down on the COPS Grant for $715,000 and spend the funds on the Dispatch radios as quickly as possible before the funds were suspended again. Reported to the federal award program as such and then there was a delay in the purchasing of all radios and equipment.