FAC Explorer

Audit 4076

FY End
2022-12-31
Total Expended
$17.06M
Findings
4
Programs
29
Organization: Allen County (OH)
Year: 2022 Accepted: 2023-11-27
Auditor: Ohio Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2385 2022-001 Material Weakness - L
2386 2022-002 Material Weakness - I
578827 2022-001 Material Weakness - L
578828 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $5.41M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.27M Yes 1
93.563 Child Support Enforcement $1.64M - 0
93.658 Foster Care_title IV-E $1.34M - 0
93.778 Medical Assistance Program $976,853 Yes 0
93.659 Adoption Assistance $918,688 Yes 0
10.760 Water and Waste Disposal Systems for Rural Communities $843,845 Yes 0
93.667 Social Services Block Grant $773,549 Yes 0
93.767 Children's Health Insurance Program $559,163 - 0
17.278 Wia Dislocated Worker Formula Grants $341,770 - 0
17.258 Wia Adult Program $337,005 - 0
17.259 Wia Youth Activities $330,578 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $296,501 Yes 1
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $207,214 - 0
84.181 Special Education-Grants for Infants and Families $157,822 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $143,991 - 0
93.575 Child Care and Development Block Grant $116,170 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $85,106 - 0
17.225 Unemployment Insurance $54,290 - 0
93.747 Elder Abuse Prevention Interventions Program $27,870 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $25,861 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,449 - 0
97.067 Homeland Security Grant Program $21,231 - 0
20.600 State and Community Highway Safety $20,920 - 0
17.207 Employment Service/wagner-Peyser Funded Activities $18,336 - 0
16.593 Residential Substance Abuse Treatment for State Prisoners $15,792 - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $15,355 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $13,552 - 0
17.245 Trade Adjustment Assistance $2,878 - 0

Contacts

Name Title Type
E3SDLKFLDM43 Rachael Gilroy Auditee
4192238518 Robert E. Jacobs Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Allen County (the County) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: Community Development Block Grant (CDBG) Without Continuing Compliance Requirements Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The County has a revolving loan fund (RLF) program to provide low-interest loans to business to create jobs for low to moderate income persons and also to lend money to eligible persons to rehabilitate homes. The U.S. Department of Housing and Urban Development (HUD) grants money for these loans to the County passed through the Ohio Department of Development. The Schedule reports loan made and administrative costs as disbursements on the Schedule. Subsequent loans are subject to the same compliance requirements imposed by HUD as the initial loans. These loans are collateralized by second position mortgages on the land and building on behalf of the County for HUD.
Title: Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) Grant Programs with Revolving Loan Cash Balance Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The current cash balance on the County’s local program income account as of December 31, 2022 is $343,830.
Title: Matching Requirements Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the County to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The County has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The County passes certain federal awards received from the U.S. Department of Health and Human Services to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, the County reports expenditures of Federal awards to subrecipients when paid in cash. As a subrecipient, the County has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these sub-awards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals.
Title: Transfer Between Federal Programs Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting, with exception for expenditures passed through the Greater Workforce Board Inc., which are reported on the accrual basis of accounting in accordance with U.S. Department of Labor. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During 2022, the County made allowable transfers of $422,337 from the Temporary Assistance for Needy Families (93.558) program to the Social Services Block Grant (93.667) program. The amount reported for the Temporary Assistance for Needy Families program on the Schedule excludes the amount transferred to the Social Services Block Grant program. The amount transferred to the Social Services Block Grant program is included in the federal program expenditures for these programs. The following table shows the gross amount drawn for the Temporary Assistance for Needy Families program during 2022 and the amount transferred to the Social Services Block Grant program.

Finding Details

Finding 2022-001
2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. § 200.328 which states, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR § 200.208 states, in part, that Federal awarding agencies are responsible for ensuring that specific Federal award conditions are consistent with the program design reflected in § 200.202 and include clear performance expectations of recipients as required in § 200.301. The Federal awarding agency or pass-through entity may adjust specific Federal award conditions as needed, in accordance with this section, based on an analysis of specified factors. Additional Federal award conditions may be added provided the applicant or non-Federal entity has been notified, and any additional requirements must be promptly removed once the conditions that prompted them have been satisfied. Additional Federal award conditions may include items such as additional, more detailed financial reports. The State of Ohio Community Development Block Grant (CDBG) Program Grant Agreements for the Village of Lafayette Water Line Project (B-W-20-1AB-1), the Gomer Wastewater Collection System Project (B-W-1AB-3) and Village of Harrod Water Line Project (B-W-20-1AB-2), state that the grantee shall submit the required reports in an adequate and timely fashion. Granter shall provide a format for these reports and shall instruct Grantee on the proper completion of said reports. All report forms and requirements listed herein shall be provided by Granter, but shall not be construed to limit Granter in making additional and/or further requests, nor in the change or addition of detail to the items listed. The Grantee shall submit to Granter a Status Report within 30 days of the request by Granter. The County submitted Status Reports; however, three out of six (fifty percent) Status Reports were submitted between three to six months late and for one out of six (sixteen percent) Status Reports the receipts and expenditures did not agree to the County records. Reporting errors could adversely affect future grant awards. A control system should be implemented to help ensure required reports are accurately prepared and submitted in a timely manner.
Finding 2022-002
2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR § 200.320, which states, in part, that the non-federal entity must have and use documented procurement procedures, for informal procurement methods which consist of micro-purchases and small purchases. 2 CFR § 200.320(a)(1)(ii) states, in part that micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. 2 CFR § 200.320(a)(2)(i) states, in part that small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Allen County Uniform Guidance Procurement Policy, Adopted June 18, 2020, Section IV. A, set the micro-purchase level at less than $10,000. Two of the three expenditures tested, one for Legal fees and one for Antigen Test Kits, from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) grant, exceeded the County's micro-purchase amount of less than $10,000. However, the County did not obtain and document price or rate quotations from adequate number of qualified sources. Noncompliance with procurement requirements could affect future grant awards. A control should be implemented to help ensure compliance with procurement requirements.
Finding 2022-001
2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. § 200.328 which states, unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. 2 CFR § 200.208 states, in part, that Federal awarding agencies are responsible for ensuring that specific Federal award conditions are consistent with the program design reflected in § 200.202 and include clear performance expectations of recipients as required in § 200.301. The Federal awarding agency or pass-through entity may adjust specific Federal award conditions as needed, in accordance with this section, based on an analysis of specified factors. Additional Federal award conditions may be added provided the applicant or non-Federal entity has been notified, and any additional requirements must be promptly removed once the conditions that prompted them have been satisfied. Additional Federal award conditions may include items such as additional, more detailed financial reports. The State of Ohio Community Development Block Grant (CDBG) Program Grant Agreements for the Village of Lafayette Water Line Project (B-W-20-1AB-1), the Gomer Wastewater Collection System Project (B-W-1AB-3) and Village of Harrod Water Line Project (B-W-20-1AB-2), state that the grantee shall submit the required reports in an adequate and timely fashion. Granter shall provide a format for these reports and shall instruct Grantee on the proper completion of said reports. All report forms and requirements listed herein shall be provided by Granter, but shall not be construed to limit Granter in making additional and/or further requests, nor in the change or addition of detail to the items listed. The Grantee shall submit to Granter a Status Report within 30 days of the request by Granter. The County submitted Status Reports; however, three out of six (fifty percent) Status Reports were submitted between three to six months late and for one out of six (sixteen percent) Status Reports the receipts and expenditures did not agree to the County records. Reporting errors could adversely affect future grant awards. A control system should be implemented to help ensure required reports are accurately prepared and submitted in a timely manner.
Finding 2022-002
2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury. 2 CFR § 200.320, which states, in part, that the non-federal entity must have and use documented procurement procedures, for informal procurement methods which consist of micro-purchases and small purchases. 2 CFR § 200.320(a)(1)(ii) states, in part that micro-purchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. 2 CFR § 200.320(a)(2)(i) states, in part that small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity. Allen County Uniform Guidance Procurement Policy, Adopted June 18, 2020, Section IV. A, set the micro-purchase level at less than $10,000. Two of the three expenditures tested, one for Legal fees and one for Antigen Test Kits, from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) grant, exceeded the County's micro-purchase amount of less than $10,000. However, the County did not obtain and document price or rate quotations from adequate number of qualified sources. Noncompliance with procurement requirements could affect future grant awards. A control should be implemented to help ensure compliance with procurement requirements.