Audit 9997

Grantor: Federal Emergency Management Agency (FEMA) Award Name: FEMA Public Assistance Award Year: FY2022 Assistance Listing Number: 97.036 Condition During the 2023 Uniform Guidance audit, Management identified $6.7 million of funds from this program that were not appropriately recorded in the 2022 SEFA. On the 2022 SEFA, management did not record reimbursement requests approved by FEMA that were for expenditures incurred prior to during fiscal years 2020 and 2021. Criteria Per the Federal Emergency Management Agency’s (“FEMA”) Public Assistance Program, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures. Cause The cause of this finding was due to insufficient review of the reporting requirements related to this program. Effect Federal funds related to program 97.036 of $6.7 million were incorrectly excluded from the 2022 SEFA. Had this been recorded correctly, this program would have been tested as a major program in 2022. As such, the 2022 SEFA was required to be revised, testing was performed over this program for 2022, and a material weakness over compliance was identified and included in the 2022 Report of Independent Auditors on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance and the reporting package was re-submitted to the Federal Audit Clearinghouse. Questioned Costs There are no questioned costs associated with this finding. Recommendation Management should enhance the control in place to review reporting requirements related to program 97.036 to ensure expenditures are reported on the SEFA in the appropriate period. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.

Grantor: Federal Emergency Management Agency (FEMA) Award Name: FEMA Public Assistance Award Year: FY2022 Assistance Listing Number: 97.036 Condition During the 2023 Uniform Guidance audit, Management identified $6.7 million of funds from this program that were not appropriately recorded in the 2022 SEFA. On the 2022 SEFA, management did not record reimbursement requests approved by FEMA that were for expenditures incurred prior to during fiscal years 2020 and 2021. Criteria Per the Federal Emergency Management Agency’s (“FEMA”) Public Assistance Program, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures. Cause The cause of this finding was due to insufficient review of the reporting requirements related to this program. Effect Federal funds related to program 97.036 of $6.7 million were incorrectly excluded from the 2022 SEFA. Had this been recorded correctly, this program would have been tested as a major program in 2022. As such, the 2022 SEFA was required to be revised, testing was performed over this program for 2022, and a material weakness over compliance was identified and included in the 2022 Report of Independent Auditors on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance and the reporting package was re-submitted to the Federal Audit Clearinghouse. Questioned Costs There are no questioned costs associated with this finding. Recommendation Management should enhance the control in place to review reporting requirements related to program 97.036 to ensure expenditures are reported on the SEFA in the appropriate period. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.