FAC Explorer

Audit 407809

FY End
2021-12-31
Total Expended
$15.89M
Findings
2
Programs
9
Organization: Washington County Arkansas (AR)
Year: 2021 Accepted: 2026-07-23
Auditor: FROST PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1224556 2021-001 Material Weakness Yes P
1224557 2021-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $6.04M Yes 2
97.067 HOMELAND SECURITY GRANT PROGRAM $1.39M Yes 0
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $623,380 Yes 0
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $296,965 Yes 0
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $292,041 Yes 0
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $67,152 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $15,587 Yes 0
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $6,844 Yes 0
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $1,457 Yes 0

Contacts

Name Title Type
MFCWFCQV8NA8 Bridget Russell Auditee
4794441895 Brian Ettehad Auditor
No contacts on file

Notes to SEFA

Basis of accounting – Expenditures reported on the SEFA are reported on the cash basis of accounting which is a comprehensive basis of accounting other than generally accepted accounting principles. All transactions relating to the County’s participation in the federal programs are recognized as either cash receipts or disbursements. Noncash transactions are not recognized in the SEFA. Disbursements are recognized following the cost principles contained in the U.S. Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The County operates under an elected form of government similar to a mayor-council format. Accounting principles generally accepted in the United States of America require that the reporting entity include (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The criteria provided in the Government Accounting Standards Board Statement No. 14, “The Financial Reporting Entity,” have been considered. The SEFA represents only the federal programs of the County and does not include data of other funds of the primary government necessary for reporting in conformity with accounting principles generally accepted in the United States of America.
The County has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 200.414, “Indirect (F&A) Costs.”
The County is subject to possible examinations with respect to grants made by regulations governing its grant activities. These examinations may result in refunds by the County to the grantors in the event of noncompliance.
Several local governmental law enforcement agencies are subrecipients for the Office of National Drug Control Policy High Intensity Drug Trafficking Area grants. Disbursements to subrecipients are considered to be made when the grants’ funds are received and then subsequently disbursed to the subrecipients.
The budgets, if applicable, for the grants identified in Note 1 are as a follows:

Finding Details

Finding 2021-001
Criteria: Preparation of the Schedule of Expenditures of Federal Awards (“SEFA”) Condition: The SEFA, as prepared by Washington County, Arkansas, Federal Programs (the “County”), was not an accurate record of total federal grants expended during the year. Cause: Formal procedures were not in place to ensure expenses were not duplicated and previously recorded. Effect or Potential Effect: Material misstatement to the SEFA, specifically related to the CRF grant. Recommendation: We recommend the County establish a comprehensive manual of accounting policies and procedures specific to the SEFA reporting that includes reconciling all grant activity to the underlying records. The County should establish a review process in order to identify and correct errors. We also recommend the County establish an annual training program for grant personnel to keep abreast of the various changes that may occur to the grant administration and reporting process.
Finding 2021-002
Criteria: The County is required to prepare a SEFA that accurately and completely presents all federal awards expended during the year in accordance with 2 CFR 200.510(b). The identification of major programs is required under 2 CFR 200.518 and is dependent on the completeness and accuracy of the SEFA. Condition: The County’s SEFA excluded expenditures related to ARPA, resulting in the omission of a federal program that should have been identified as a Type A program and audited as a major program. Cause: The County did not have effective procedures in place to identify and evaluate new or non-routine federal funding sources, specifically ARPA-related funding, within its grants administration process to ensure such programs were appropriately recorded and reported on the SEFA. Effect or Potential Effect: The SEFA was materially understated by $6,036,061. A required major program was not initially identified or audited in accordance with the Uniform Guidance. Major program determination under 2 CFR 200.518 was incorrect. Recommendation: We recommend formal procedures be established to evaluate all grants executed, received, and expended to determine whether they are required to be reported in the SEFA. The new management team has since implemented revised procedures to enhance the identification and tracking of federal expenditur