Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF). Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report. Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available. Cause: The City did not retain documentation of a review and approval of federal reports submitted. Effect: The City did not have appropriate controls in place over documentation of reporting requirements. Questioned Costs: None reported. Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-014 – Cash Management (Significant Deficiency and Noncompliance) Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health). Criteria: 2 CFR 200.305 establishes methods of receiving payment from federal agencies. 2 CFR 200.303 established that recipients must establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to the City's approved fiscal policies and procedures, drawdown reports/reimbursement requests must be approved by the grants department and accounting manager or CFO. Condition: The City drew the remaining balance on the Minority Health award during the year. Documentation of review and approval for the draw was not available. Cause: The City is experiencing turnovers and staffing challenges which have led to some gaps in following procedures. Effect: The City did not document proper controls in place over cash management. Questioned Costs: None reported. Recommendation: We recommend the City should strengthen procedures to ensure it complies with its policies and procedures to ensure appropriate level of management is reviewing cash drawdown requests. Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Assistance Listing Number: 66.468 Program Title: Capitalization Grants for Drinking Water Revolving Fund Pass-through Entity: Alabama Department of Environmental Management Contract Number and Year: FS010055.02 2022 Finding Type: Significant Deficiency Known Questioned Costs: None Criteria - 2 CFR Section 200.303(a) requires nonfederal entities receiving federal awards to establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 2 CFR 200.305 Federal Payment requires nonfederal entities to establish written procedures to implement the requirements of cash management of federal funding. Condition - The Organization received federal funds prior to paying contractors and had no written procedures in place for appropriately handling those funds. Cause - The Organization has not developed or implemented written procedures for appropriately handling advance federal funds. Effect - Possible noncompliance with cash management requirements of the program. Recommendation - The Organization should develop, implement and comply with written procedures to meet the requirements of 2 CFR Section 200.303(a) and 2 CFR 200.305 Federal Payment. View of Responsible Officials - The General Manager has implemented policies and procedures so the Utilities Board of the City of Oneonta will not request advance payments. Payments to contractors will issue within 10 business days of receipt of approval from Project Engineer. In the event contractors can not be paid within 30 days, advanced funds received will be deposited into a designated insured interest bearing account until contractors are paid.
2024-003 Timely Report Submission ALN 14.228 Community Development Block Grant/State’s Program and Non-entitlement Grants in Hawaii Department of Housing and Urban Development Passed through Florida Department of Economic Opportunity Fiscal Year 2024 Funding Criteria: Per 2 CFR Part 200.303, requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The CDBG award agreement requires quarterly performance reporting within 10 days of the end of the fiscal quarter, monthly progress reports and due 10 days after month end, annual compliance certification is due 60 days after year end, and HUD-2516 is due every April 15th and October 15th. Condition: Six of the eight CDBG reports tested were not submitted by the required deadlines. Cause of the condition: The City does not have established procedures to prompt management or City Officials to submit reports by the required deadlines. Potential effect of condition: The granting agency could rescind funding for continued noncompliance. Questioned Costs: None noted. Recommendation: The City should create a process to alert/remind management and City officials to meet the reporting requirements and deadlines. Management Response: The City recognizes the need for timely grant reporting and has recently added a Grants Administrator position to the Finance Department who has created a grant report tracking process.
2024-003 Timely Report Submission ALN 14.228 Community Development Block Grant/State’s Program and Non-entitlement Grants in Hawaii Department of Housing and Urban Development Passed through Florida Department of Economic Opportunity Fiscal Year 2024 Funding Criteria: Per 2 CFR Part 200.303, requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The CDBG award agreement requires quarterly performance reporting within 10 days of the end of the fiscal quarter, monthly progress reports and due 10 days after month end, annual compliance certification is due 60 days after year end, and HUD-2516 is due every April 15th and October 15th. Condition: Six of the eight CDBG reports tested were not submitted by the required deadlines. Cause of the condition: The City does not have established procedures to prompt management or City Officials to submit reports by the required deadlines. Potential effect of condition: The granting agency could rescind funding for continued noncompliance. Questioned Costs: None noted. Recommendation: The City should create a process to alert/remind management and City officials to meet the reporting requirements and deadlines. Management Response: The City recognizes the need for timely grant reporting and has recently added a Grants Administrator position to the Finance Department who has created a grant report tracking process.
2024-002 Lack of Report Review 21.027 COVID-19 Coronavirus & Local Fiscal Recovery Funds US Department of the Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Various reports are required to be submitted throughout the course of the work, as per the grant agreements between the City and Florida Department of Environmental Protection. Condition: Quarterly reports were not reviewed throughout the period under audit. Cause of condition: There is no process to document review of reports submitted to Florida Department of Environmental Protection. Potential effect of condition: Reports submitted to Florida Department of Environmental Protection may be incomplete, include errors, or be submitted late. Questioned Costs: None. Recommendation: Review of reports should be documented prior to submission to the grantor. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all reports are properly reviewed prior to submission and that evidence of the review process is properly documented.
2024-002 Lack of Report Review 21.027 COVID-19 Coronavirus & Local Fiscal Recovery Funds US Department of the Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Various reports are required to be submitted throughout the course of the work, as per the grant agreements between the City and Florida Department of Environmental Protection. Condition: Quarterly reports were not reviewed throughout the period under audit. Cause of condition: There is no process to document review of reports submitted to Florida Department of Environmental Protection. Potential effect of condition: Reports submitted to Florida Department of Environmental Protection may be incomplete, include errors, or be submitted late. Questioned Costs: None. Recommendation: Review of reports should be documented prior to submission to the grantor. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all reports are properly reviewed prior to submission and that evidence of the review process is properly documented.
2024-002 Lack of Report Review 21.027 COVID-19 Coronavirus & Local Fiscal Recovery Funds US Department of the Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Various reports are required to be submitted throughout the course of the work, as per the grant agreements between the City and Florida Department of Environmental Protection. Condition: Quarterly reports were not reviewed throughout the period under audit. Cause of condition: There is no process to document review of reports submitted to Florida Department of Environmental Protection. Potential effect of condition: Reports submitted to Florida Department of Environmental Protection may be incomplete, include errors, or be submitted late. Questioned Costs: None. Recommendation: Review of reports should be documented prior to submission to the grantor. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all reports are properly reviewed prior to submission and that evidence of the review process is properly documented.
2024-002 Lack of Report Review 21.027 COVID-19 Coronavirus & Local Fiscal Recovery Funds US Department of the Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Various reports are required to be submitted throughout the course of the work, as per the grant agreements between the City and Florida Department of Environmental Protection. Condition: Quarterly reports were not reviewed throughout the period under audit. Cause of condition: There is no process to document review of reports submitted to Florida Department of Environmental Protection. Potential effect of condition: Reports submitted to Florida Department of Environmental Protection may be incomplete, include errors, or be submitted late. Questioned Costs: None. Recommendation: Review of reports should be documented prior to submission to the grantor. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all reports are properly reviewed prior to submission and that evidence of the review process is properly documented.
2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.
2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.
2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.
2024-003 Suspension and Debarment 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury Passed through Florida Department of Environmental Protection 2024 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. 2 CFR 180 prohibits entering into covered transactions with entities that have been suspended or debarred from Federal funding. Documentation of the check for suspension or debarment needs to be retained. Condition: Review of checking for suspension and debarment was not done prior to contracting with the vendor. Cause of condition: There is no consistent process to ensure that the vendors were not suspended and debarred, prior to procuring goods or services. Perspective (context): For 29 of the 37 invoices selected, suspension and debarment was not checked prior to paying the vendor. Potential effect of condition: Good or services could be contracted with a suspended or debarred vendor, creating questioned costs. Questioned Costs: None. Recommendation: Review of vendors suspension and debarment should be done prior to entering into a contract or obtaining good or services. Management’s response on planned corrective action: The City has worked and will continue to work diligently on this issue. The City is working to ensure that all vendors are properly reviewed for suspension and debarment on an ongoing basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Timely review and approval should be maintained to ensure accurate amounts are being drawdown and accurate reports are submitted. Under 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Organization did not adequately follow internal controls in place to ensure required reports are approved by the appropriate personnel before being submitted. Questioned Costs: N/A Context: The control in place for internal review prior to submitting financial reports to HS/EHS was not followed for two of the five reports tested. Cause: Management was unable to obtain the signature of the assigned individual due to their unavailability during a break period. Effect: Potential for inaccurate information to be reported. Repeat Finding: No Recommendation: Establish a backup signatory process to ensure that there is always an available individual to provide necessary signatures, even during periods of unavailability. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2023 to May 31, 2024, June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. Under 2 CFR section 200.303 a non-federal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the no reconciliation of the inventory count to the asset listing. Questioned Costs: N/A Context: There was no documented reconciliation of inventory count. Cause: The Organization performed an inventory count during the fiscal year, however, there were no policies in place to formally document the count, reconcile the count to the asset listing, or review such reconciliation. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should perform an inventory count with proper reconciliations to the asset listing, along with having a different individual review and document such review of the count and the reconciliation. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Noncompliance Finding and Significant Deficiency – Reporting Criteria: 2CFR 200.303 establishes that grant recipients should establish, document, and maintain effective internal control over federal awards, including controls over reviews of reports and compliance with reporting requirements. 2 CFR 200.239(c) establishes that grant recipients should submit performance reports timely. Condition: During our testing, D&T inspected 16 programmatic reports whereby there should have been appropriate levels of review and compliance with submission requirements. Two reports were submitted to the granting agency late, 3 reports did not have any evidence of review and approval of the reports prior to submission, and 4 reports did not have proper segregation of duties as related to the preparation and submission of the reports. Cause: For the late reports, department management did not monitor and ensure that the reports were submitted in a timely manner due to other emergency events at the County taking priority. For the reports with lack of review support, management did not maintain supporting documentation of the review performed on the reports prior to submission. Lastly, for the reports without proper segregation of duties, Harris County did not design or implement a segregation of duties control to ensure separate preparer and reviewer. Effect: Failure to review and approve the reports prior to submission to the grantor, late submission of the reports, and lack of segregation of duties increases the risk of submitting an inaccurate report and may result in the early termination of the award, reimbursement of award funds, and cessation of future funding. Recommendation: Management should establish detailed and precise controls to ensure timely reviews, clear identification of preparers and reviewers, and retain evidence of such reviews to ensure compliance with grant requirements. Views of Responsible Officials: See Corrective Action Plan County Contact Person(s): Richard Williams, Deputy Chief Financial Officer of Harris County Public Health Danielle Calhoun, Associate Director of Harris County Public Health Allison Hare, Director of Public Health Emergency Preparedness Beatrice Best, Lead Grant Program Supervisor of Harris County Public Health
Program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds COVID-19 Airport Improvement Program Assistance Listing Numbers: 21.027 20.106 Federal Award ID Number: SLFRP0894, 23PLN17 3-12-0145-012-2023, 3-12-0145-017-2021 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Federal Aviation Authority Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The grant agreements required various performance/reimbursement/financial reports. The reports were not reviewed prior to submission to granting agency. A Quarterly report required for the Federal Aviation Authority was not submitted within the 30 days after quarter close. Condition: During the audit, it was identified that required reports were not reviewed prior to submission. Reports were submitted, but there was no documented evidence of thorough review or oversight, leading to concerns regarding the accuracy, completeness, and compliance of the reports. During the audit, it Report 5370 was submitted late. The required due date was within 30 days of quarter close. The report was submitted twenty-two days after due date. Cause: The City was unaware of the requirement that reports be reviewed by a person other than the preparer prior to submission. The City received the invoices for the quarterly reports after the due date, causing a delay in submitting the report. Effect: The absence of regular reviews increases the risk of errors, omissions, or non-compliance with regulatory requirements. This oversight can lead to financial discrepancies, inaccurate reporting and matching amounts, and potential legal or reputational risks. Additionally, failure to review reports may delay the identification of operational issues or inefficiencies. The late submission may cause disruptions in compliance with regulatory timelines, potentially lead to penalties or loss of funding. Questioned Costs: None Perspective: Two of the grants that required reports, both did not have any reports reviewed. CRI tested three of the six required reports. Only one was submitted late. Recommendation: Management should implement a formalized process for reviewing all required reports prior to submission. Management’s Response: Management agrees that all financial data would potentially be more accurate if reviewed by an additional qualified person prior to use. However, limited staff has prevented this from always being practical. In the future, management will seek ways to add more controls to all of our processes, including reviews, to ensure more accurate and reliable data is submitted.
Program title: COVID-19 Coronavirus State and Local Fiscal Recover Funds Assistance Listing Numbers: 21.027 Federal Award ID Number: SLFRP0894, 23PLN17 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Vendors should be checked for suspension and debarment prior to services being performed. Condition: During the audit, it was determined that 2 of the 2 vendors selected for projects were not screened against the federal suspension and debarment list prior to award. The vendor was not verified against the System for Award Management (SAM) or other relevant databases to ensure they were not excluded from doing business with the government, as required by federal regulations. Cause: The City was in the process of hiring a new procurement manager and relied on piggybacking on county contracts when selecting vendors. Effect: The failure to check the vendor against suspension and debarment lists exposes the City to the risk of engaging with vendors who may be ineligible to perform work under federally funded programs. This non-compliance could lead to potential financial penalties, legal consequences, and reputational damage, as well as the risk of working with unqualified or non-compliant vendors. Questioned Costs: None Perspective: One hundred percent of the population (2 vendors) was selected for testing. Both vendors were not checked for suspension and debarment. Recommendation: Management should implement a formalized process for checking all vendors prior to work being started on the project. Management’s Response: In January 2024 a Procurement Manager was hired. Procedures were added to ensure that the City will be in compliance with the 2 CFR 200.303 in the future.
Program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds COVID-19 Airport Improvement Program Assistance Listing Numbers: 21.027 20.106 Federal Award ID Number: SLFRP0894, 23PLN17 3-12-0145-012-2023, 3-12-0145-017-2021 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Federal Aviation Authority Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The grant agreements required various performance/reimbursement/financial reports. The reports were not reviewed prior to submission to granting agency. A Quarterly report required for the Federal Aviation Authority was not submitted within the 30 days after quarter close. Condition: During the audit, it was identified that required reports were not reviewed prior to submission. Reports were submitted, but there was no documented evidence of thorough review or oversight, leading to concerns regarding the accuracy, completeness, and compliance of the reports. During the audit, it Report 5370 was submitted late. The required due date was within 30 days of quarter close. The report was submitted twenty-two days after due date. Cause: The City was unaware of the requirement that reports be reviewed by a person other than the preparer prior to submission. The City received the invoices for the quarterly reports after the due date, causing a delay in submitting the report. Effect: The absence of regular reviews increases the risk of errors, omissions, or non-compliance with regulatory requirements. This oversight can lead to financial discrepancies, inaccurate reporting and matching amounts, and potential legal or reputational risks. Additionally, failure to review reports may delay the identification of operational issues or inefficiencies. The late submission may cause disruptions in compliance with regulatory timelines, potentially lead to penalties or loss of funding. Questioned Costs: None Perspective: Two of the grants that required reports, both did not have any reports reviewed. CRI tested three of the six required reports. Only one was submitted late. Recommendation: Management should implement a formalized process for reviewing all required reports prior to submission. Management’s Response: Management agrees that all financial data would potentially be more accurate if reviewed by an additional qualified person prior to use. However, limited staff has prevented this from always being practical. In the future, management will seek ways to add more controls to all of our processes, including reviews, to ensure more accurate and reliable data is submitted.
Program title: COVID-19 Coronavirus State and Local Fiscal Recover Funds Assistance Listing Numbers: 21.027 Federal Award ID Number: SLFRP0894, 23PLN17 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Vendors should be checked for suspension and debarment prior to services being performed. Condition: During the audit, it was determined that 2 of the 2 vendors selected for projects were not screened against the federal suspension and debarment list prior to award. The vendor was not verified against the System for Award Management (SAM) or other relevant databases to ensure they were not excluded from doing business with the government, as required by federal regulations. Cause: The City was in the process of hiring a new procurement manager and relied on piggybacking on county contracts when selecting vendors. Effect: The failure to check the vendor against suspension and debarment lists exposes the City to the risk of engaging with vendors who may be ineligible to perform work under federally funded programs. This non-compliance could lead to potential financial penalties, legal consequences, and reputational damage, as well as the risk of working with unqualified or non-compliant vendors. Questioned Costs: None Perspective: One hundred percent of the population (2 vendors) was selected for testing. Both vendors were not checked for suspension and debarment. Recommendation: Management should implement a formalized process for checking all vendors prior to work being started on the project. Management’s Response: In January 2024 a Procurement Manager was hired. Procedures were added to ensure that the City will be in compliance with the 2 CFR 200.303 in the future.
Program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds COVID-19 Airport Improvement Program Assistance Listing Numbers: 21.027 20.106 Federal Award ID Number: SLFRP0894, 23PLN17 3-12-0145-012-2023, 3-12-0145-017-2021 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Federal Aviation Authority Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The grant agreements required various performance/reimbursement/financial reports. The reports were not reviewed prior to submission to granting agency. A Quarterly report required for the Federal Aviation Authority was not submitted within the 30 days after quarter close. Condition: During the audit, it was identified that required reports were not reviewed prior to submission. Reports were submitted, but there was no documented evidence of thorough review or oversight, leading to concerns regarding the accuracy, completeness, and compliance of the reports. During the audit, it Report 5370 was submitted late. The required due date was within 30 days of quarter close. The report was submitted twenty-two days after due date. Cause: The City was unaware of the requirement that reports be reviewed by a person other than the preparer prior to submission. The City received the invoices for the quarterly reports after the due date, causing a delay in submitting the report. Effect: The absence of regular reviews increases the risk of errors, omissions, or non-compliance with regulatory requirements. This oversight can lead to financial discrepancies, inaccurate reporting and matching amounts, and potential legal or reputational risks. Additionally, failure to review reports may delay the identification of operational issues or inefficiencies. The late submission may cause disruptions in compliance with regulatory timelines, potentially lead to penalties or loss of funding. Questioned Costs: None Perspective: Two of the grants that required reports, both did not have any reports reviewed. CRI tested three of the six required reports. Only one was submitted late. Recommendation: Management should implement a formalized process for reviewing all required reports prior to submission. Management’s Response: Management agrees that all financial data would potentially be more accurate if reviewed by an additional qualified person prior to use. However, limited staff has prevented this from always being practical. In the future, management will seek ways to add more controls to all of our processes, including reviews, to ensure more accurate and reliable data is submitted.
Program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds COVID-19 Airport Improvement Program Assistance Listing Numbers: 21.027 20.106 Federal Award ID Number: SLFRP0894, 23PLN17 3-12-0145-012-2023, 3-12-0145-017-2021 Name of Federal Agency: United States Department of Treasury - Award 23PLN17 Passed through the Florida Department of Environmental Protection; Federal Aviation Authority Funding: 2024 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. The grant agreements required various performance/reimbursement/financial reports. The reports were not reviewed prior to submission to granting agency. A Quarterly report required for the Federal Aviation Authority was not submitted within the 30 days after quarter close. Condition: During the audit, it was identified that required reports were not reviewed prior to submission. Reports were submitted, but there was no documented evidence of thorough review or oversight, leading to concerns regarding the accuracy, completeness, and compliance of the reports. During the audit, it Report 5370 was submitted late. The required due date was within 30 days of quarter close. The report was submitted twenty-two days after due date. Cause: The City was unaware of the requirement that reports be reviewed by a person other than the preparer prior to submission. The City received the invoices for the quarterly reports after the due date, causing a delay in submitting the report. Effect: The absence of regular reviews increases the risk of errors, omissions, or non-compliance with regulatory requirements. This oversight can lead to financial discrepancies, inaccurate reporting and matching amounts, and potential legal or reputational risks. Additionally, failure to review reports may delay the identification of operational issues or inefficiencies. The late submission may cause disruptions in compliance with regulatory timelines, potentially lead to penalties or loss of funding. Questioned Costs: None Perspective: Two of the grants that required reports, both did not have any reports reviewed. CRI tested three of the six required reports. Only one was submitted late. Recommendation: Management should implement a formalized process for reviewing all required reports prior to submission. Management’s Response: Management agrees that all financial data would potentially be more accurate if reviewed by an additional qualified person prior to use. However, limited staff has prevented this from always being practical. In the future, management will seek ways to add more controls to all of our processes, including reviews, to ensure more accurate and reliable data is submitted.
Department of Agriculture Federal Financial Assistance Listing #10.766 Special Tests and Provisions Material Weakness in Internal Control over Compliance and Noncompliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The loan resolution security agreements state the Organization must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by state and federal government or invested in marketable securities backed by the full faith and credit of the United States. Condition: The funds that represented the debt service reserve fund were commingled with an existing operating cash account. Cause: The Hospital did not maintain a separate bank account or general ledger account for the debt service reserve fund. Effect: The debt service reserve funds were commingled with other operating funds within an operating cash account. Questioned Costs: None reported. Context: Sampling was not used. Recommendation: We recommend that management maintain a separate bank account or general ledger account for the debt service reserve fund. Views of Responsible Officials: Management agrees with the finding.
Item 2024-002 – Suspension and Debarment U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds Listing #21.027 Year Ended September 30, 2024 Criteria – 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.” Non‐Federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include those procurement contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition – Adequate controls were not in place to provide for proper review of covered transactions for suspension and debarment. Covered transactions, over $25,000 paid with grant funding were not reviewed for suspension and debarment. Cause – The City lacked sufficient controls to ensure evidence of compliance with suspension and debarment. Questioned Costs – None noted Effect – Failure to properly verify that a potential vendor has not been suspended or debarred could result in unallowable expenditures and disallowed costs. Recommendation – We recommend that controls should be put into place to better monitor and document the compliance of vendors for suspension and debarment. Management’s Response – The City will implement additional controls to ensure there is evidence of review of covered transactions over $25,000 for suspension and debarment prior to payment. City’s Financial Officer will be responsible for the corrective action and anticipates completion of corrective action will be taken before September 30, 2025.
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.
Criteria or Requirement 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include establishing procedures to ensure timely and accurate reporting of financial information required by the agreement with the United States Postal Service or obtaining written approval of any extension of reporting deadlines. Condition Found, including Perspective The Organization has not established adequate internal control procedures to ensure the timely submission of the Financial Report, Contribution Reports, and Quality Report (collectively the Annual Reports) to the United States Postal Service (USPS) for the National Postal Museum (NPM) project. Prior to the June 30, 2024 reporting deadline, the Organization notified USPS the Annual Reports would be submitted late as a result of employee turnover, and USPS acknowledged the delay. A formal extension of the deadline was not granted. The Organization eventually submitted its Annual Reports to the USPS on February 12, 2025 (227 days late), for the June 30, 2024 reporting deadline. Possible Cause and Effect The Organization experienced turnover within the NPM project. Specifically, the individual responsible for preparing the Annual Reports left the Organization in fiscal year 2023 and it took time for the successor to learn the reporting process resulting in delayed reporting. Questioned Costs None identified. Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year No Recommendation We recommend the Organization appropriately identify resources needed to fulfill the reporting requirements under the NPM agreement to help ensure the Annual Reports are submitted to the USPS within the required deadlines. Additionally, the Organization should establish a comprehensive list of NPM requirements and should establish procedures to cross train staff to perform required responsibilities applicable to the NPM Project. Views of Responsible Officials The Smithsonian agrees with the finding. The Smithsonian would like to add that the reports were delivered to the sponsor and that the sponsor was satisfied with them. Furthermore, the sponsor has provided written acknowledgment that they were “verbally kept up to date” by the National Postal Museum (NPM) regarding this potential delay. Moving forward, NPM will strengthen senior management oversight of report delivery, review due dates more rigorously, and enhance internal controls to ensure timely submission. Any potential delays will be confirmed in writing to the sponsor ahead of the due date, and compliance updates will be provided by NPM senior management to the sponsor on a regular basis. Additionally, NPM will establish procedures to cross train staff to perform required responsibilities applicable to the NPM Project.