Audit 45341

Finding 2022-001:U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: Per 2 CFR 200.332, pass-through entities must clearly identify required subaward elements to subrecipients, evaluate the subrecipient?s risk of noncompliance with Federal guidelines and the terms of the award, and confirm that the subrecipient is not debarred or suspended. Further, per 2 CFR 200.303, the entity must have a system of internal control designed to maintain compliance with these requirements. Condition: The County provided a subaward of SLFRF funds to a subrecipient. The County did not include the required data elements in the subaward document, did not perform an assessment of the risk of subrecipient noncompliance with federal guidelines and grant terms, and did not review to determine that the subrecipient was not suspended or debarred. Cause: The County did not have a subrecipient monitoring policy in place that required compliance with these guidelines. Effect: SLFRF requirements for pass-through entities were not followed. Questioned Costs: None. Context/Sampling: Sampling was not utilized. The County issued one subaward during the period under audit. Recommendation: The County should create a subrecipient monitoring policy and include evidence of compliance with the policy in the subrecipient monitoring file. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan. Repeat Finding from Prior Year: No

Finding 2022-002: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County?s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, a nonstatistical sample of 2 out of 4 reports were tested. Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan. Repeat Finding from Prior Year: No

Finding 2022-001:U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Controls over Compliance and Material Noncompliance Criteria: Per 2 CFR 200.332, pass-through entities must clearly identify required subaward elements to subrecipients, evaluate the subrecipient?s risk of noncompliance with Federal guidelines and the terms of the award, and confirm that the subrecipient is not debarred or suspended. Further, per 2 CFR 200.303, the entity must have a system of internal control designed to maintain compliance with these requirements. Condition: The County provided a subaward of SLFRF funds to a subrecipient. The County did not include the required data elements in the subaward document, did not perform an assessment of the risk of subrecipient noncompliance with federal guidelines and grant terms, and did not review to determine that the subrecipient was not suspended or debarred. Cause: The County did not have a subrecipient monitoring policy in place that required compliance with these guidelines. Effect: SLFRF requirements for pass-through entities were not followed. Questioned Costs: None. Context/Sampling: Sampling was not utilized. The County issued one subaward during the period under audit. Recommendation: The County should create a subrecipient monitoring policy and include evidence of compliance with the policy in the subrecipient monitoring file. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan. Repeat Finding from Prior Year: No

Finding 2022-002: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County?s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, a nonstatistical sample of 2 out of 4 reports were tested. Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan. Repeat Finding from Prior Year: No