Audit 409659

2025-003 Uniform Guidance and State Single Audit Guidelines Findings Review of Claim Forms and Expenditure Reconciliation Significant Deficiency in Internal Control over Compliance Federal Assistance Listing Numbers – 93.778 Federal Agency – Department of Health and Human Services Federal Program Title – Medicaid Cluster State Program Title: Various State ID Number: Various Pass-Through Numbers(s): Various Award Period: January 1, 2025 to December 31, 2025 Compliance Requirement Reporting, Cash Management Criteria or Specific Requirement Uniform Guidance requires the reporting of costs or activities as the basis for making payments to providers. Review of claims and expenditures reconciliation is important control over compliance to ensure reports are properly prepared and agree with the County’s actual activity. Condition The county did not perform review procedures over claims prior to submission or over monthly reconciliations. Questioned Costs None Context During reporting testing, it was noted that the County does not have review process in place for reporting. Cause There was no review over the monthly claims and monthly expenditures reconciliation prior to submission. Effect Unallowed costs could be claimed, or costs could be double claimed. Repeat Finding The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-003. Recommendation We recommend that there is an appropriate reviewer of each grant claim and monthly reconciliation. View of Responsible Officials There is no disagreement with the audit finding.

2025-002 Uniform Guidance and State Single Audit Guidelines Findings Uniform Grant Guidance Implementation Significant Deficiency in Internal Control over Compliance Federal Agency: All Federal Program Title: All Assistance Listing Number: All Pass-Through Agency: All Pass-Through Numbers(s): All Award Period: All Compliance Requirement Allowable costs/cost principles, cash management, procurement, and reporting Criteria or Specific Requirement Uniform Guidance requires the County to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition The County has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the County are managed through these county-wide policies and procedures; however, the policies and procedures have not been evaluated to ensure compliance with requirements of Uniform Guidance. As an example, the County is required to have an allowable cost policy which establishes the responsible officials who are able to determine if a cost is allowable. While expenditures tested had documentation of approval, implementing a formal policy in accordance with Uniform Guidance would improve transparency and effectiveness of the County’s documentation. Questioned Costs None Context While performing audit procedures, it was noted that the County does not have policies in place that conform to Uniform Grant Guidance requirements. Cause The County has not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end. Effect The County could become noncompliant with requirements of Uniform Guidance, resulting in future findings and questioned costs related to federal awards administered by the County. Repeat Finding The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-002. Recommendation We recommend the County finalize the assessment of its financial management system and related internal controls over federal awards during 2026. This assessment should include an evaluation of existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to County employees, and procedures to periodically review and update, as considered necessary. Views of Responsible Officials There is no disagreement with the audit finding.