2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.
2022-004 (2019-010) CASH MANAGEMENT ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: During our testing, we noted the Department was not performing timely reimbursement requests of federal awards within the quarterly reporting process. Previously uncollectable amounts have caused a large deficit fund balance to accrue for federal programs. ? All o Fund balance in the Federal Grants Fund (40280) decreased from a deficit of $7,105,386 to a deficit of $11,169,582, a reduction of $4,064,195. Of this reduction, $1,851,874 could not be readily explained, and the majority of this figure likely represents federal expenditures from FY22 or prior that had not been requested as of January 17, 2023. ? Assistance Listing 97.036 o An operating unit was not identified on $50,653 in FY22 expenditures. o 1 of 23 requests tested was for a FY19 expenditure, which had not been disbursed to the subrecipient until FY22. ? Assistance Listing 97.067 o 1 of 17 requests tested was for a FY21 expenditure, which had not been disbursed to the subrecipient until 06/30/2022. o 6 of 17 payments to subrecipients tested were missing pertinent signatures indicating review and approval. o 4 of 17 payments to subrecipients tested lacked adequate supporting documented from the subrecipients for reimbursement. Management?s Progress for Repeated Findings: Management has made significant progress to address the prior year condition relating to the identification of operating units in accounting entries, and in reconciling grant trackers to the general ledger. Management failed to implement adequate controls to resolve other conditions of the finding from the prior years. Criteria: According to ?200.303 Internal controls of 2 CFR Part 200, the non- Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Specific to the Department, federal reimbursement requests are completed quarterly with the reporting process. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Cause: The Department continued to have staff turnover. Also, the Department lacks established internal controls and procedures over financial grant management to ensure the tracking of unbilled amounts and over timely compliance with applicable compliance requirements.
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.
2022-006 (2019-015) SUBRECIPIENT MONITORING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: None Condition: During our testing, we noted the Department did not have adequate internal controls in place to ensure compliance with subrecipient monitoring. ? All o The Department lacked evidence that a risk assessment was performed for subrecipients as relates to the risk of noncompliance for those subawards subject to the Uniform Guidance. o The Department lacked a process for all federal programs to review the audits of subrecipients that would allow the Department to identify any potential deficiencies that would require follow-up. o The Department lacked a process to ensure timely reporting by subgrantees of financial reporting and performance reporting. Also, the Department lacked a process to ensure timely review of reports submitted by subgrantees. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. In addition, the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521 Management Decision. Department Policy No. GRA 418 Sub-Grant Recipient Monitoring effective June 30, 2017 establishes and implements policy and procedures for the Department staff engaged in the Department?s sub-grant recipient monitoring process. For Mitigation Sub-Grant Monitoring, the Mitigation Specialist shall review the local progress quarterly reports due to the Department. For Non-Disaster Sub-Grant Recipient Monitoring, the Program Manager shall review the local progress quarterly reports due to the Department. Specific to Pre-Monitoring Requirements and Considerations, Department Program Staff shall perform risk-based assessments and apply the assessment to all of the Department?s approved sub-recipients for monitoring purposes and risk designation. Effect: The auditor noted instances of material noncompliance. Noncompliance results in possible federal funds provided to ineligible subrecipients. Also, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance at the subrecipient level. Potential costs outside the scope of work as well as overall effective project management at the subrecipient level. Cause: The program staff continue to not operate under the Sub-Grant Recipient Monitoring effective June 30, 2017. The Department continues to lack established internal controls and procedures over financial grant management to ensure compliance with applicable compliance requirements.