Audit 5965

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-004 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition Documentation was not maintained by the County demonstrating price or rate quotations were received for the purchase of a piece of equipment. Cause The County did not maintain documentation of price and rate quotes received. Effect By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs $11,000 Recommendations The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials The County does have procurement policies which, if followed correctly, would have prevailed. Hood River County Fair did go out for the best bid on their project unfortunately, no written documentation was stored. This was a time of transition in staff. Also, this area is mostly volunteers who were not trained. In the future, the County will ensure that everyone working on a Federally funded project is properly trained in grant and procurement policies and procedures.

Finding 2022-004 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition Documentation was not maintained by the County demonstrating price or rate quotations were received for the purchase of a piece of equipment. Cause The County did not maintain documentation of price and rate quotes received. Effect By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs $11,000 Recommendations The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials The County does have procurement policies which, if followed correctly, would have prevailed. Hood River County Fair did go out for the best bid on their project unfortunately, no written documentation was stored. This was a time of transition in staff. Also, this area is mostly volunteers who were not trained. In the future, the County will ensure that everyone working on a Federally funded project is properly trained in grant and procurement policies and procedures.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-008 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $129,786 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials The County is implementing processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported.

Finding 2022-008 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $129,786 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials The County is implementing processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported.

Finding 2022-009 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause: In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $7,855 Recommendations: The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is implementing proper controls over policies, procedures, training, and review processes especially where these relate to Federal grant projects. Through this educational endeavor the County will correctly be able to identify costs as indirect versus direct.

Finding 2022-009 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause: In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $7,855 Recommendations: The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is implementing proper controls over policies, procedures, training, and review processes especially where these relate to Federal grant projects. Through this educational endeavor the County will correctly be able to identify costs as indirect versus direct.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-003 21.027 - Coronavirus State and Local Fiscal Recovery Funds 93.268 - Immunization Cooperative Agreements 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition Hood River County has not developed written procedures for determining the allowability of costs. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the procedure related to Allowability of Costs. These updates are happening in the current fiscal year.

Finding 2022-004 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition Documentation was not maintained by the County demonstrating price or rate quotations were received for the purchase of a piece of equipment. Cause The County did not maintain documentation of price and rate quotes received. Effect By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs $11,000 Recommendations The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials The County does have procurement policies which, if followed correctly, would have prevailed. Hood River County Fair did go out for the best bid on their project unfortunately, no written documentation was stored. This was a time of transition in staff. Also, this area is mostly volunteers who were not trained. In the future, the County will ensure that everyone working on a Federally funded project is properly trained in grant and procurement policies and procedures.

Finding 2022-004 21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria 2 CFR Part 200.320(a)(2)(i) indicates “If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-Federal entity.” Condition Documentation was not maintained by the County demonstrating price or rate quotations were received for the purchase of a piece of equipment. Cause The County did not maintain documentation of price and rate quotes received. Effect By not obtaining price or rate quotations, the County may pay more for goods and services than is necessary. Questioned Costs $11,000 Recommendations The County should establish and follow procurement policies and procedures to ensure the County adheres to requirements established by the Federal Government. Views of Responsible Officials The County does have procurement policies which, if followed correctly, would have prevailed. Hood River County Fair did go out for the best bid on their project unfortunately, no written documentation was stored. This was a time of transition in staff. Also, this area is mostly volunteers who were not trained. In the future, the County will ensure that everyone working on a Federally funded project is properly trained in grant and procurement policies and procedures.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-005 93.268 - Immunization Cooperative Agreements Criteria Quarterly Expenditure and Revenue Grant reports submitted should be accurate. Condition Expenditures were improperly classified on the quarterly expenditure and revenue reports between personal services, services and supplies, capital outlay and indirect costs. Cause An in-depth analysis of expenditures charged to the program was not completed when completing the quarterly reports to ensure proper classification. Effect Misclassifications could cause grant funds to not be spent in accordance with the grant agreement and budget. Questioned Costs None Recommendations We recommend the County complete an in-depth analysis of expenditures to ensure proper classification on quarterly reports. Views of Responsible Officials Hood River County is currently working on several updated Grant procedures that include an update to the reporting procedures. Unfortunately, because the County was 3 years behind on audits, it is extending audit recovery into future years.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-006 93.268 - Immunization Cooperative Agreements Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $176,489 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials Proper policies and procedures have been created based on Federal regulations, benchmarked best practices, and applicable state statutes. Now, the focus lies with training the right employees to follow these. New procedures include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the Federal grants to ensure amounts charged are properly supported. Hood River County hopes to have all audits caught up by the end of this calendar year (2023) and be able to focus on bolstering our processes.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-007 93.268 - Immunization Cooperative Agreements Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $12,891 Recommendations The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is working toward a higher level of staff training for Federal grant work, better review is also included in future grant reporting goals.

Finding 2022-008 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $129,786 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials The County is implementing processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported.

Finding 2022-008 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.430(i)(viii) states “budget estimates alone do not qualify as support for charges to federal awards but may be used for interim accounting purposes.” Condition The County requested reimbursement for payroll expenditures which were based on budget estimates alone. Cause The County was unaware budget estimates alone were insufficient support. Effect Payroll expenditures charged to the grant are unsupported by actual time and effort documentation. Questioned Costs $129,786 Recommendations The County should implement processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported. Views of Responsible Officials The County is implementing processes and procedures to include a review of after-the-fact time and effort documentation as compared to budgeted amounts charged to the federal grants to ensure amounts charged are properly supported.

Finding 2022-009 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause: In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $7,855 Recommendations: The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is implementing proper controls over policies, procedures, training, and review processes especially where these relate to Federal grant projects. Through this educational endeavor the County will correctly be able to identify costs as indirect versus direct.

Finding 2022-009 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Criteria CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy.” Condition Indirect costs were classified as direct costs to the program. Cause: In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When completing the quarterly reports, these were not identified and separately classified as indirect costs. Effect By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by the grant agreement. Questioned Costs $7,855 Recommendations: The County should correctly identify costs as indirect costs. Views of Responsible Officials The County is implementing proper controls over policies, procedures, training, and review processes especially where these relate to Federal grant projects. Through this educational endeavor the County will correctly be able to identify costs as indirect versus direct.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.

Finding 2022-010 93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.268 - Immunization Cooperative Agreements Criteria According to CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition Internal controls were insufficient to ensure charges to the federal awards were accurate, allowable and properly allocated. Cause There has been significant turnover of County personnel in recent years, and the County has historically not been subject to Single Audit. Due to this, the County did not have a properly designed system of internal controls to ensure compliance. Effect The County charged expenditures to the grants which were unallowable. Questioned Costs None Recommendations: The County should implement a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Views of Responsible Officials A Payroll Accountant new to Hood River County in 2023 has corrected this issue in the 2024 Fiscal Year. It was thought previously that clocking in and out by function or job was not permitted by current software limitations. Two routes of correction were devised. One route for hourly employees allows now for a timecard within each individual work segment. Route two is for salaried employees which allows them to assign hours to individual segments. At the end of the pay period the employee certifies by electronic submission to their supervisor for approval. The supervisor electronically approves the timecard. Once the Payroll is processed, the Payroll Accountant looks over wage assignments by General Ledger number to ensure time is being tracked correctly. Once proofed, the Payroll Accountant then submits for the Finance Director to approve and post to the General ledger.