Audit 414961

2024-007 Schedule of Expenditures of Federal Awards Preparation Federal Agency: U.S. Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting - Schedule of Expenditures of Federal Awards Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 200.510(b), requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's finanical statements, including the total federal awards expended. Section 200.303 requires the auditee to establish and maintain effective internal control over federal awards. Condition: During our testing, we found an instance where the County had entered into an agreement to loan federal funds and subsequently determined that the loan would not be federally funded. The County did not remove this loan from the SEFA, that was initially provided for the audit. Cause: The County did not have a process to ensure that changes in funding source decisions were reflected in its financial information, including the SEFA. Effect: Federal expenditures reported on the SEFA were overstated prior to correction. An inaccurate SEFA could affect the determination of major programs and the accuracy of information reported to federal agencies. Questioned Costs: None. Context: We identified one loan agreement that remained on the SEFA as a federal expenditure after the County determinded that the loan would not be federally funded. Recommendation: We recommend that when decisions are made to change funding sources, the County conduct a thorough review to ensure the change is properly reflected in the County's financial information, including the SEFA. View of Responsible Officials: Please see the last page of this report for the response to this finding.

2024-008 Single Audit Reporting Deadline Federal Agency: All federal agencies Federal Program: All major federal programs Compliance Requirements: Reporting - Single Audit Submission Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Uniform Guidance, 2 CFR Section 200.512(a)(1), requires the single audit to be completed and the data collection form and reporting package to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's reports(s) or nine months after the end of the audit period. Condition: The County did not submit its single audit reporting package and data collection form for the fiscal year ended June 30, 2024 by the required deadline. Cause: Delays in closing the County's accounting records and preparing year-end financial information, including the matters described in findings 2024-004 and 2024-005, prevented the single audit from being completed and submitted timely. Effect: The County is not in compliance with the reporting requirements of the Uniform Guidance. Late submission prevents the County from qualifying as a low-risk auditee under 2 CFR Section 200.520 and may result in federal awarding agencies taking action under 2 CFR Section 200.505. Questioned Costs: None. Context: The single audit reporting package and data collection form for the fiscal year ended June 30, 2024 were due March 31, 2025, and were not submitted by that date. Recommendation: We recommend that the County establish a year-end closing schedule with defined deadlines for reconciling accounts and preparing financial information, so that the single audit can be completed and the reporting package and data collection form submitted within the time frame required by the Uniform Guidance. Views of Responsible Officials: Please see the last page of this report for the response to this finding.