FAC Explorer

Audit 50608

FY End
2022-12-31
Total Expended
$5.34M
Findings
2
Programs
31
Organization: Morrison County (MN)
Year: 2022 Accepted: 2023-09-27
Auditor: Office of the State Auditor

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45513 2022-002 Material Weakness - L
621955 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.05M Yes 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $870,800 Yes 1
93.563 Child Support Enforcement $523,593 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $368,420 - 0
93.667 Social Services Block Grant $199,646 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $177,275 - 0
93.658 Foster Care_title IV-E $153,874 - 0
20.219 Recreational Trails Program $75,000 Yes 0
93.558 Temporary Assistance for Needy Families $44,993 - 0
93.674 Covid-19 - John H. Chafee Foster Care Program for Successful Transition to Adulthood $41,523 - 0
93.994 Maternal and Child Health Services Block Grant to the States $41,339 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $39,166 - 0
90.404 2018 Hava Election Security Grants $27,455 - 0
93.069 Public Health Emergency Preparedness $26,038 - 0
93.268 Covid-19 - Immunization Cooperative Agreements $23,955 - 0
93.778 Medical Assistance Program $23,096 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $15,384 - 0
93.590 Community-Based Child Abuse Prevention Grants $8,517 - 0
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $7,644 - 0
20.600 State and Community Highway Safety $5,522 - 0
93.669 Child Abuse and Neglect State Grants $5,156 - 0
93.575 Child Care and Development Block Grant $3,760 - 0
93.767 Children's Health Insurance Program $3,116 - 0
20.615 E-911 Grant Program $2,529 - 0
93.556 Promoting Safe and Stable Families $2,313 - 0
20.616 National Priority Safety Programs $2,188 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,127 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $2,107 - 0
84.181 Special Education-Grants for Infants and Families $2,100 - 0
97.012 Boating Safety Financial Assistance $1,977 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $608 - 0

Contacts

Name Title Type
QQMBFLC5JUD6 Shannon Coyle Auditee
3206320131 Julie Blaha Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Reporting EntityThe Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Morrison County. The Countys reporting entity is defined in Note 1 to the financial statements. The schedule does not include $612,140 in federal awards expended by the Housing and Redevelopment Authority of Morrison County component unit. The component unit is legally separate from the primary government and expended less than $750,000 of federal awards for the year ended December 31 ,2022, therefore, was not subject to the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Morrison County under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Morrison County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Morrison County.Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Reconciliation to Schedule of Intergovernmental RevenueFederal grant revenue per Schedule of Intergovernmental Revenue$ 5,021,932Grants received more than 60 days after year-end, considered unavailable revenue in 2022Highway Planning and Construction (AL No. 20.205)314,669Expenditures per Schedule of Expenditures of Federal Awards$ 5,336,601

Finding Details

Finding 2022-002
2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: Federal Direct; 2022 Pass-Through Agency: N/A ? Direct Criteria: U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: The County incorrectly reported the full CSLFRF award amount of $6,484,839 as expenditures on the Annual Project and Expenditure report submitted to the U.S. Treasury for 2022 when they should have reported $0. The Annual Project and Expenditure Report due in April 2022, was for the reporting period ending March 31, 2022. Questioned Costs: $6,484,839. Context: The County opted to spend the CSLFRF?s award under the Revenue Replacement category which allows spending on broader types of government services. Effect: Noncompliance with federal reporting requirements. Cause: County staff responsible for completing and submitting the Annual Project and Expenditure report misinterpreted the guidance and reported planned expenditures versus actual expenditures under revenue replacement, even though no expenditures were incurred as of March 31, 2022. Recommendation: We recommend the County review U.S. Department of the Treasury guidance and form instructions to ensure it is correctly reporting its CSLFRF activity. In addition, the County should maintain documentation to support data reported. View of Responsible Official: Acknowledged
Finding 2022-002
2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: Federal Direct; 2022 Pass-Through Agency: N/A ? Direct Criteria: U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: The County incorrectly reported the full CSLFRF award amount of $6,484,839 as expenditures on the Annual Project and Expenditure report submitted to the U.S. Treasury for 2022 when they should have reported $0. The Annual Project and Expenditure Report due in April 2022, was for the reporting period ending March 31, 2022. Questioned Costs: $6,484,839. Context: The County opted to spend the CSLFRF?s award under the Revenue Replacement category which allows spending on broader types of government services. Effect: Noncompliance with federal reporting requirements. Cause: County staff responsible for completing and submitting the Annual Project and Expenditure report misinterpreted the guidance and reported planned expenditures versus actual expenditures under revenue replacement, even though no expenditures were incurred as of March 31, 2022. Recommendation: We recommend the County review U.S. Department of the Treasury guidance and form instructions to ensure it is correctly reporting its CSLFRF activity. In addition, the County should maintain documentation to support data reported. View of Responsible Official: Acknowledged