Audit 61

FY End
2022-06-30
Total Expended
$57.29M
Findings
2
Programs
49
Organization: County of Madera (CA)
Year: 2022 Accepted: 2023-10-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
66 2022-001 Material Weakness Yes AB
576508 2022-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $12.60M Yes 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $4.32M Yes 1
93.778 Medical Assistance Program $4.22M Yes 0
10.551 Supplemental Nutrition Assistance Program $3.44M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.04M Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $2.67M - 0
93.563 Child Support Enforcement $2.11M - 0
14.239 Home Investment Partnerships Program $2.04M Yes 0
93.268 Immunization Cooperative Agreements $1.98M Yes 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.64M Yes 0
93.667 Social Services Block Grant $885,929 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $863,688 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $573,951 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $409,076 - 0
93.958 Block Grants for Community Mental Health Services $370,319 - 0
93.556 Promoting Safe and Stable Families $354,790 - 0
93.659 Adoption Assistance $324,142 - 0
93.747 Elder Abuse Prevention Interventions Program $195,057 - 0
93.069 Public Health Emergency Preparedness $173,885 - 0
93.658 Foster Care_title IV-E $158,074 - 0
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $144,228 - 0
93.889 National Bioterrorism Hospital Preparedness Program $131,398 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $124,686 - 0
93.603 Adoption Incentive Payments $100,543 - 0
93.767 Children's Health Insurance Program $88,072 - 0
93.917 Hiv Care Formula Grants $87,684 - 0
16.588 Violence Against Women Formula Grants $87,264 - 0
16.575 Crime Victim Assistance $86,498 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $84,514 - 0
14.241 Housing Opportunities for Persons with Aids $76,914 - 0
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $72,782 - 0
93.217 Family Planning_services $71,229 - 0
97.042 Emergency Management Performance Grants $64,640 - 0
16.579 Domestic Cannabis Eradication $61,978 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $61,835 - 0
10.025 Plant and Animal Disease, Pest Control, and Animal Care $57,218 - 0
93.994 Maternal and Child Health Services Block Grant to the States $51,302 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $47,537 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $39,136 - 0
16.710 Public Safety Partnership and Community Policing Grants $33,507 - 0
10.555 National School Lunch Program $27,360 - 0
97.067 Homeland Security Grant Program $24,580 - 0
20.205 Highway Planning and Construction $22,694 - 0
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $19,210 - 0
10.553 School Breakfast Program $15,489 - 0
93.090 Guardianship Assistance $15,435 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $3,445 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $1,106 - 0
21.019 Coronavirus Relief Fund $273 - 0

Contacts

Name Title Type
KNPYKHLWNKE1 Elizabeth Cruz Auditee
5596757707 Rich Gonzalez Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards presents the activity of all federal awards programs of the County of Madera for the year ended June 30, 2022, except for federal awards received by the Madera County Workforce Investment Corporation. Madera County Workforce Investment Corporation engaged other auditors to perform an audit in accordance with the U.S. Office of Management and Budget, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200) also referred to as the Uniform Guidance.
Title: FEDERAL ASSISTANCE LISTING NUMBER Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A The program titles and Federal Assistance Listing numbers were obtained from the federal or pass-through grantor. When no Federal Assistance Listing number had been assigned to a program, the two-digit federal agency identifier and the federal contract number were used. When there was no federal contract number, the two-digit federal agency identifier and the word “unknown” were used.
Title: LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A Outstanding federally funded program loans, with a continuing compliance requirement, carried balances as of June 30, 2022 as follows:
Title: OTHER LOANS Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A Outstanding federally funded program loans, carried balances as of June 30, 2022 as follows:
Title: PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: N/A When federal awards were received from a pass-through entity, the schedule of expenditures of federal awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the County determined that no identifying number is assigned for the program, or the County was unable to obtain an identifying number from the pass-through entity.

Finding Details

Federal agency: US Department of Housing and Urban Development Federal program title: Community Development Block Grant Federal Assistance Listing Number: 14.228 Pass-Through Agency: State Department of Housing and Community Development Award Period: July 1, 2021 – June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR 570.483 and 570.490. Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for 12 of the loans. These 12 loans were investigated by the County, and it was discovered that residents had not responded to the Annual Residency Verification or provided Proof of Occupancy. The County was not able to start the foreclosure procedures to recover the receivable and the loans remained on the receivable listing. Questioned costs: $276,471 Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected 29 loans of a population of 241 CDBG loans to test continuing compliance and found that 12 of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to lack of staffing at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance and failed to remove them from the receivables listing. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. After inquiry with the department, we believe there are no more loans that are affected by this control. Repeat Finding: Repeat finding, 2021-001. Recommendation: CLA recommends the County develop procedures to ensure that outstanding loan continuing compliance is documented and followed per the CDBG grant loan provision and that staffing allows for timely procedures. CLA also recommends the Community and Economic Development Planning Division include a compliance check box in the receivables listing sent to the Auditor-Controller’s office to document the compliance status of the loans. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: US Department of Housing and Urban Development Federal program title: Community Development Block Grant Federal Assistance Listing Number: 14.228 Pass-Through Agency: State Department of Housing and Community Development Award Period: July 1, 2021 – June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria: Grant compliance requires that Community Development Block Grant loans be monitored for compliance with the loan provisions on a regular basis. Such loan requirements are required to ensure CDBG loan funds are used in accordance with all program requirements. The requirements are noted in the OMB 24 CFR 570.483 and 570.490. Condition: During our test of the outstanding loans for continuing compliance, we noted the County did not have adequate documentation to support monitoring of program loans to ensure compliance with loan provisions for 12 of the loans. These 12 loans were investigated by the County, and it was discovered that residents had not responded to the Annual Residency Verification or provided Proof of Occupancy. The County was not able to start the foreclosure procedures to recover the receivable and the loans remained on the receivable listing. Questioned costs: $276,471 Context: CDBG loans must be monitored annually to ensure recipients are still living in the residence covered by the loan. CLA haphazardly selected 29 loans of a population of 241 CDBG loans to test continuing compliance and found that 12 of those loans did not have adequate documentation to show continued monitoring occurred. Cause: Due to lack of staffing at the time of monitoring, the County was unable to perform foreclosure filing procedures in a timely manner after realizing loans were not in compliance and failed to remove them from the receivables listing. Effect: Not following through on continual monitoring requirements could result in noncompliance with program requirements and could potentially cause an overstatement of program loan receivables reported by the County. After inquiry with the department, we believe there are no more loans that are affected by this control. Repeat Finding: Repeat finding, 2021-001. Recommendation: CLA recommends the County develop procedures to ensure that outstanding loan continuing compliance is documented and followed per the CDBG grant loan provision and that staffing allows for timely procedures. CLA also recommends the Community and Economic Development Planning Division include a compliance check box in the receivables listing sent to the Auditor-Controller’s office to document the compliance status of the loans. Views of responsible officials: There is no disagreement with the audit finding.