Finding 2023-002: Procurement Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award 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). Additionally, according to 2 CFR §200.318 Procurement standards, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Title 2, Subtitle A Chapter II Part 200 Subpart D 200.319 Procurement Standards. All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Noncompetitive procurements can only be awarded in accordance with §200.320(c). According to 2 CFR §200.320 Procurement Standards, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: 1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); 2. The item is available only from a single source; 3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; 4. The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or 5. After solicitation of a number of sources, competition is determined inadequate. Condition: During our testing over procurement, we determined that ASCB did not clearly document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Cause: Management did not have effective internal controls in place to ensure that procurement requirements were adequately documented and retained. Effect or Potential Effect: Procurement records were insufficient to meet the requirements noted in the Criteria section above, as well as ASCB's internal procurement policy. Questioned Costs: None. Context: We noted one item selected for testing did not document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend ASCB retain sufficient procurement documentation to meet the requirements noted in the Criteria section above.
Finding 2023-002: Procurement Criteria: According to 2 CFR §200.303, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award 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). Additionally, according to 2 CFR §200.318 Procurement standards, the non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Title 2, Subtitle A Chapter II Part 200 Subpart D 200.319 Procurement Standards. All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and §200.320. The non-Federal entity must have written procedures for procurement transactions. These procedures must ensure that all solicitations: (1) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Noncompetitive procurements can only be awarded in accordance with §200.320(c). According to 2 CFR §200.320 Procurement Standards, there are specific circumstances in which noncompetitive procurement can be used. Noncompetitive procurement can only be awarded if one or more of the following circumstances apply: 1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section); 2. The item is available only from a single source; 3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; 4. The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or 5. After solicitation of a number of sources, competition is determined inadequate. Condition: During our testing over procurement, we determined that ASCB did not clearly document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Cause: Management did not have effective internal controls in place to ensure that procurement requirements were adequately documented and retained. Effect or Potential Effect: Procurement records were insufficient to meet the requirements noted in the Criteria section above, as well as ASCB's internal procurement policy. Questioned Costs: None. Context: We noted one item selected for testing did not document the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend ASCB retain sufficient procurement documentation to meet the requirements noted in the Criteria section above.
Failure to Maintain Complete Accounting Records for Federal Awards Critera: Title 2 U. S. Code of Federal Regulations (CFR) Section 200.303, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the Village establish and maintain internal control over federal awards that provide reasonable assurance that the Village is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award. One of the objectives of internal control over compliance is to ensure that federal transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements, including the Schedule of Expenditures of Federal Awards. Condition: The federal award transactions were not recorded in the Village’s accounting records. Cause: The accounting software that the Village uses to maintain its other accounting records was not compatible with establishing and maintaining the accountingcords for the federal awards transactions. Effect: Federal award transactions could possibly be excluded from the financial statements and the Schedule of Expenditures of Federal Awards. Recommendation: All future federal award transactions should be recorded as transactions of the Water System Enterprise Fund in the accounting software.
Finding No. 2023-001 – Cash Management and Subrecipient Monitoring Controls Material Weakness Federal Agency: United States Agency for International Development (USAID) Federal Assistance Listing Number: ALN 98.001 Federal Program: USAID Foreign Assistance for Programs Overseas Award Name: Advancing Food Fortification Opportunities to Reinforce Diets (USAID AFFORD) Award Number: 7200AA22LE00002 Criteria: Per 2 CFR 200.303, recipients of federal awards must establish and maintain effective internal control over federal awards to provide reasonable assurance that federal awards are managed in a way that is compliant with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Payments totaling approximately $331,000 intended to a subrecipient were fraudulently diverted by an employee for personal gain. Cause: Ineffective control procedures allowed for changes in payment instructions. Effect: Misappropriation of assets of approximately $331,000. Reportable questioned costs: None Context: Cash disbursements of federal funds intended for subrecipients of the federal program were misappropriated due to a man-in-the-middle email scheme perpetrated by a TechnoServe program manager. The intended subrecipient was paid and TechnoServe was able to recover most of the losses through the bank and insurance. Repeat Finding: No Recommendation: We recommend TechnoServe review and strengthen controls in place around cash management disbursements and subrecipient monitoring. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.
Department of Education and Passed through State of South Dakota Department of Education FFAL #84.287C, S287C220042 Twenty-First Century Community Learning Centers Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: The Club is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E – Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.430(i) establishes requirements for documentation of personnel expenses. 2 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 the terms and conditions of the federal award. Condition: Our testing over expenditures noted the following items: - Two instances where timesheets or bi-weekly activity reports were unable to be provided. - Three instances where the employee’s paid time off and holiday pay was not allocated nor submitted for reimbursement under the federal program, which was inconsistent with other pay periods. - One instance where support did not agree to the amount and time allocated. Cause: Tracking of grant-related payroll is a manual process which increases the likelihood of error. Effect: The Club’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Club could submit disallowed costs under the federal awards. Questioned Costs: No questioned costs over $25,000. Context/Sampling: A nonstatistical sample of 60 transactions out of approximately 830 total transactions were selected testing, of which 51 of those transactions were payroll transactions and accounted for $45,055 out of $272,463 of total payroll transactions. Repeat Finding from Prior Year: No Recommendation: We recommend management continue to review the process over tracking payroll related to federal programs and consider incorporating a secondary review of any manual spreadsheets or consider if the payroll can be allocated directly within the payroll system. Views of Responsible Officials: Management is in agreement.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 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. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding: Allowable Costs and Allowable Activities Federal Assistance Listing Number 20.205 - Highway Planning and Construction Department of Transportation, Passed-through Colorado Department of Transportation Award Number - SHO-105A-016, Award Year 2022Award Number - 22-HA1-XC-00228, Award Year 2022 Criteria: According to 2 CFR Part 200.303 - The non-Federal entity must (a) Establish and maintain effective internal control over the Federal award 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). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Condition: During testing, we noted that two transactions totaling $1,501,269 related to 2022 activities and was included as an expenditure on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The period of performance for the project began in 2022 and extended through 2023. Questioned Costs: None. Context: We tested 4 of the 15 nonpayroll transactions for the grants identified above and noted two instance in which 2022 activities were included as expenditures on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The tested population covered expenditures of $7.0 million and the total population of expenditures were approximately $32.2 million. A non-statistical sampling methodology was used to select the sample. Effect: The County did not have adequate internal controls in place over the Highway Planning and Construction program, which resulted in a 2022 expense being reported in 2023. Cause: Grant management at the County is decentralized and thus departments are responsible for providing the required information to the County's Department of Finance to facilitate the preparation of the SEFA. The Engineering Department did not provide the Department of Finance all business units being used for grant activity or pending journal entries to record grant activity. Identification as a repeat finding: Not Applicable Recommendation: We recommend the County revise their internal process to require all grant agreements be provided to the Department of Finance at the time the agreement is signed. In addition, we recommend the Engineering Department complete monthly reconciliations over all grants which should then be subsequently provided to the Department of Finance for final review. Views of responsible officials and planned corrective actions: Agree. See separate report for planned corrective actions.
Finding: Allowable Costs and Allowable Activities Federal Assistance Listing Number 20.205 - Highway Planning and Construction Department of Transportation, Passed-through Colorado Department of Transportation Award Number - SHO-105A-016, Award Year 2022Award Number - 22-HA1-XC-00228, Award Year 2022 Criteria: According to 2 CFR Part 200.303 - The non-Federal entity must (a) Establish and maintain effective internal control over the Federal award 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). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Condition: During testing, we noted that two transactions totaling $1,501,269 related to 2022 activities and was included as an expenditure on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The period of performance for the project began in 2022 and extended through 2023. Questioned Costs: None. Context: We tested 4 of the 15 nonpayroll transactions for the grants identified above and noted two instance in which 2022 activities were included as expenditures on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The tested population covered expenditures of $7.0 million and the total population of expenditures were approximately $32.2 million. A non-statistical sampling methodology was used to select the sample. Effect: The County did not have adequate internal controls in place over the Highway Planning and Construction program, which resulted in a 2022 expense being reported in 2023. Cause: Grant management at the County is decentralized and thus departments are responsible for providing the required information to the County's Department of Finance to facilitate the preparation of the SEFA. The Engineering Department did not provide the Department of Finance all business units being used for grant activity or pending journal entries to record grant activity. Identification as a repeat finding: Not Applicable Recommendation: We recommend the County revise their internal process to require all grant agreements be provided to the Department of Finance at the time the agreement is signed. In addition, we recommend the Engineering Department complete monthly reconciliations over all grants which should then be subsequently provided to the Department of Finance for final review. Views of responsible officials and planned corrective actions: Agree. See separate report for planned corrective actions.
Finding: Allowable Costs and Allowable Activities Federal Assistance Listing Number 20.205 - Highway Planning and Construction Department of Transportation, Passed-through Colorado Department of Transportation Award Number - SHO-105A-016, Award Year 2022Award Number - 22-HA1-XC-00228, Award Year 2022 Criteria: According to 2 CFR Part 200.303 - The non-Federal entity must (a) Establish and maintain effective internal control over the Federal award 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). (b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal awards. (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards. Condition: During testing, we noted that two transactions totaling $1,501,269 related to 2022 activities and was included as an expenditure on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The period of performance for the project began in 2022 and extended through 2023. Questioned Costs: None. Context: We tested 4 of the 15 nonpayroll transactions for the grants identified above and noted two instance in which 2022 activities were included as expenditures on the fiscal year 2023 Schedule of Expenditures of Federal Awards. The tested population covered expenditures of $7.0 million and the total population of expenditures were approximately $32.2 million. A non-statistical sampling methodology was used to select the sample. Effect: The County did not have adequate internal controls in place over the Highway Planning and Construction program, which resulted in a 2022 expense being reported in 2023. Cause: Grant management at the County is decentralized and thus departments are responsible for providing the required information to the County's Department of Finance to facilitate the preparation of the SEFA. The Engineering Department did not provide the Department of Finance all business units being used for grant activity or pending journal entries to record grant activity. Identification as a repeat finding: Not Applicable Recommendation: We recommend the County revise their internal process to require all grant agreements be provided to the Department of Finance at the time the agreement is signed. In addition, we recommend the Engineering Department complete monthly reconciliations over all grants which should then be subsequently provided to the Department of Finance for final review. Views of responsible officials and planned corrective actions: Agree. See separate report for planned corrective actions.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the federal award 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. According to §200.430(i) Standards for Documentation of Personnel Expenses of 2 CFR Part 200, (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: i. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii. Be incorporated into the official records of the non-Federal entity; iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; iv. Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; v. Comply with the established accounting policies and practices of the non-Federal entity; and vi. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. According to the Authority’s policies and procedures, for employees working in a single indirect cost function, such as overhead, a Budget Analyst compares the salary budgets with actual salary allocations and investigates unusual variances. This review is performed on the first pay run of the fiscal year and at the end of every quarter. If the investigation determines that the salary allocation is no longer valid, the Department can request a change in allocation rates. Allocation changes can only be changed in the Enterprise One (E1) system by the payroll manager, or the budget analyst assigned to the overhead account. Employees engaged in multiple direct cost business units and projects, and indirect overhead activity, may have their labor distribution entered in E1 as a predetermined (budgeted) allocation of their wages. A monthly certification (Federal Hours Certification Report) is sent to exempt and non-exempt staff working on federal projects to ensure their time is charged out appropriately. All employees who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. All exempt employees (who do not punch in on Kronos) who work on federal projects verify the allocations of their timesheets, thereby satisfying the effort reporting requirement. Condition: During our testing of 40 MTW employee pays selected for payroll disbursement testing, we noted 4 of the 40 pay did not have adequate time and effort documentation. Questioned costs: $9,187 Context: We noted that 4 of the 40 pays did not have adequate time and effort documentation. The Authority was unable to provide the Federal Hours Certification Report for these 4 employees. Cause: Procedures in place regarding quarterly reviews of allocations were not followed. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grant. Recommendation: We recommend the Authority implements an adequate review process to ensure costs charged to the grant are reasonable, accurate, and properly allocated. We recommend the Authority perform and document this review quarterly at minimum. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grant and COVID-19 Community Development Block Grant Assistance Listing Number: 14.218 Award Period: January 1, 2023 through December 31, 2023 Award Number: B-18-UC-08-0002, B-19-UC-08-0002, B-20-UC-08-0002, B-20-UW-08-0002, B-21-UC- 08-0002, B-22-UC-08-0002, and B-23-UC-08-0002 Compliance Requirement: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 170 requires subawards to be reported to the Federal Funding and Accountability Transparency Act Subaward Reporting System (FSRS). Condition: During testing of the Federal Funding Accountability and Transparency Act (FFATA) reports, it was noted that no FFATA reporting had been completed during the year ended December 31, 2023. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 6 6 6 Not tested Not tested Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $ 480,000 $ 480,000 $ 480,000 Not tested Not tested Questioned costs: None. Context: While the reports were not filed timely, the supporting documentation that was needed to file the report was gathered by the County and the filing was completed in May 2024. Cause: The County experienced turnover during the fiscal year which impacted the timeliness of the submissions. Effect: Compliance with the reporting requirement for this program is not being met and the information is not being provided on the public website. Repeat Finding: No Recommendation: We recommend that the County continue with the process being implemented during the fiscal year 2024, which includes completing submission of the reports and tracking the timely submission of the FFATA reports. Views of responsible officials: There is no disagreement with the audit finding.
2023-001 Eligibility Prior Year Finding Number: 2022-003 Year of Finding Origination: 2022 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2301MNTANF; 2023 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 42 U.S. Code of Federal Regulations § 602(a)(1)(B)(iii) requires each state to create a written document that sets forth the objective criteria for the delivery of benefits and the determination of eligibility. The Minnesota Department of Human Services’ State Plan for Temporary Assistance for Needy Families (TANF) and Minn. Stat. § 256J.10 establish the general eligibility requirements for TANF benefits. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by MNPrairie to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS case files tested: • two case files where the asset amounts listed were not supported by documentation on file. • one case file where the income amount in MAXIS was input incorrectly and did not agree to the supporting documentation on file. • one case file where the application completed by the participant was incomplete. Questioned Costs: None. Context: The State of Minnesota and MNPrairie split the eligibility determination process. Pursuant to Minnesota statutes, MNPrairie performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the State. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS documenting verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not ensure all required information was input correctly, supported, and obtained or retained. Recommendation: We recommend MNPrairie implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists, the information is properly input or updated in MAXIS, and issues are followed up on in a timely manner. In addition, consideration should be given to providing further training to program personnel. View of Responsible Official: Acknowledge.
2023-002 Child Support Non-Cooperation Prior Year Finding Number: 2022-004 Year of Finding Origination: 2022 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2301MNTANF; 2023 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 45 U.S. Code of Federal Regulations § 264.30 states: “What procedures exist to ensure cooperation with the child support enforcement requirements? (a) (1) The State agency must refer all appropriate individuals in the family of a child, for whom paternity has not been established or for whom a child support order needs to be established, modified or enforced, to the child support enforcement agency (i.e., the IV-D agency). (2) Referred individuals must cooperate in establishing paternity and in establishing, modifying, or enforcing a support order with respect to the child. (b) If the IV-D agency determines that an individual is not cooperating, and the individual does not qualify for a good cause or other exception established by the State agency responsible for making good cause determinations in accordance with section 454(29) of the Act or for a good cause domestic violence waiver granted in accordance with § 260.52 of this chapter, then the IV-D agency must notify the IV-A agency promptly. (c) The IV-A agency must then take appropriate action by: (1) Deducting from the assistance that would otherwise be provided to the family of the individual an amount equal to not less than 25 percent of the amount of such assistance; or (2) Denying the family any assistance under the program." Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by MNPrairie to support the eligibility determination process. Part of the eligibility determination process is cooperating with child support requirements. MNPrairie must reduce benefits when a case is in child support non-cooperation status. In a sample of 15 case files reviewed, two case files had identified errors related to improper timing of reduced benefits for case files in non-cooperation status. The sanctions that are imposed on casefiles are not reviewed by someone after they are entered into the system. Questioned Costs: None. Context: Child support non-cooperation is determined by MNPrairie, and the Providing Resources to Improve Support in Minnesota (PRISM) system maintains the information and recipient status. When a Child Support Officer at MNPrairie updates PRISM to show non-cooperation, it interfaces with MAXIS. From this interface, MAXIS receives a Worker’s Daily Report (DAIL) message which notifies the entity of child support non-cooperation. MNPrairie is responsible for updating the recipient’s record in MAXIS, including entering child support sanctions, or closing a case on the seventh occurrence of noncompliance. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Noncompliance with Title 45 U.S. Code of Federal Regulations § 264.30. Benefit overpayments could be paid when child support non-cooperation is not properly processed for a benefit month. Cause: Program personnel entering case data into MAXIS reported the participant was homeless, which does not prevent sanctions of benefits. Recommendation: We recommend MNPrairie implement procedures to ensure child support non-cooperation casefiles benefits are being reduced as necessary in MAXIS. View of Responsible Official: Acknowledge.
2023-003 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Prior Year Finding Number: N/A Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.563 Child Support Enforcement Award Number and Year: 2301MNCSES and 2301MNCEST; 2023 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Administrative program costs for Child Support Enforcement program are submitted to the Minnesota Department of Human Services (DHS) through the DHS Income Maintenance DHS-2550 report on a quarterly basis. DHS provides reporting instructions. Payroll for certain staff is required to be allocated between the 2550 report and the DHS-2556 report. Effective internal control includes documentation of approval for claims. Condition: The following deviations were noted in a sample of 40 expenditures tested: • two claims did not have documentation to support the supervisor’s approval, and • four employees’ timesheets for office support staff were not allocated correctly between income maintenance and social services and therefore the payroll expenditures included on the DHS quarterly reports were not accurate. Questioned Costs: Questioned costs identified were less than $25,000. Context: The documentation of the approval of the claims could not be provided for review. DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to MNPrairie are for applicable federal program activities/costs. For sampled items, the sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Unapproved claims could result in unallowable costs being included in the DHS quarterly reports. In addition, approximately $63,000 in payroll expenditures were reported on the DHS-2550 report which should have been reported on the DHS Social Service DHS-2556 report. The federal funding is allocated differently and at different rates for each report; it is likely the federal funds received related to these costs were inaccurate. Cause: MNPrairie indicated the two claims were reviewed but the documentation to support this review and approval for payment was overlooked by staff completing the procedure. In addition, MNPrairie noted the office support staff employees did not have the correct payroll allocations in the payroll system in error. Recommendation: We recommend MNPrairie maintain documentation to support the review and approval of all claims to ensure costs are allowable to be reported on the DHS-2550 report. In addition, we recommend the DHS-2550 report be completed in accordance with DHS instructions and any reports submitted with costs allocated incorrectly should be corrected and resubmitted. View of Responsible Official: Acknowledge.
2023-003 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Prior Year Finding Number: N/A Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.563 Child Support Enforcement Award Number and Year: 2301MNCSES and 2301MNCEST; 2023 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Administrative program costs for Child Support Enforcement program are submitted to the Minnesota Department of Human Services (DHS) through the DHS Income Maintenance DHS-2550 report on a quarterly basis. DHS provides reporting instructions. Payroll for certain staff is required to be allocated between the 2550 report and the DHS-2556 report. Effective internal control includes documentation of approval for claims. Condition: The following deviations were noted in a sample of 40 expenditures tested: • two claims did not have documentation to support the supervisor’s approval, and • four employees’ timesheets for office support staff were not allocated correctly between income maintenance and social services and therefore the payroll expenditures included on the DHS quarterly reports were not accurate. Questioned Costs: Questioned costs identified were less than $25,000. Context: The documentation of the approval of the claims could not be provided for review. DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to MNPrairie are for applicable federal program activities/costs. For sampled items, the sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Unapproved claims could result in unallowable costs being included in the DHS quarterly reports. In addition, approximately $63,000 in payroll expenditures were reported on the DHS-2550 report which should have been reported on the DHS Social Service DHS-2556 report. The federal funding is allocated differently and at different rates for each report; it is likely the federal funds received related to these costs were inaccurate. Cause: MNPrairie indicated the two claims were reviewed but the documentation to support this review and approval for payment was overlooked by staff completing the procedure. In addition, MNPrairie noted the office support staff employees did not have the correct payroll allocations in the payroll system in error. Recommendation: We recommend MNPrairie maintain documentation to support the review and approval of all claims to ensure costs are allowable to be reported on the DHS-2550 report. In addition, we recommend the DHS-2550 report be completed in accordance with DHS instructions and any reports submitted with costs allocated incorrectly should be corrected and resubmitted. View of Responsible Official: Acknowledge.