Department of Health and Human Services Federal Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #860554593 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance 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. The Organization selected Option iii to calculate lost revenue, which consists of utilizing an alternative reasonable method. Condition ‐ The Organization selected option iii to calculate lost revenue using budgeted gross revenues to actual gross revenues. The Organization’s HHS Period 4 Report included lost revenues for three quarters that did not agree to the supporting calculation of lost revenues. Cause ‐ The budgeted amounts were updated after the HHH Period 4 Report was submitted. Those changes decreased the budgeted amounts for three quarters in 2022 resulting in lost revenues being under‐reported by $278,644. Effect ‐ The Organization understated the amount of lost revenues claimed in the HHS Period 4 Report by $278,446. While the Organization had an error in the total amount of lost revenues reported, the Organization has unused lost revenues of $4,563,025. Should the lost revenue reported by the Organization be corrected, the unused lost revenues would be $4,841,669. Questioned Costs ‐ None reported. Context ‐ Lost revenue was tested for all twelve quarters included in the HHS Period 4 Report. Three of the quarters had lost revenues which were reported incorrectly (Quarters 1, 2, and 3 in 2022). Repeat Finding from Prior Years ‐ No Recommendation ‐ We recommend that the Organization enhance internal control policies over the budget to ensure that the lost revenue calculation is not changed after submission and follows the Option iii methodology utilized to calculate lost revenues. Views of Responsible Officials ‐ Management agrees with the finding.
Condition: Numerous data entry errors occurred during the year where incorrect check numbers were entered into the accounting system. There were also multiple gaps in sequence in the check register. This should have been discovered during the bank reconciliation process (review of canceled check images) but was not. Bank statements were not reconciled correctly on a timely basis, and lists of outstanding checks were not included with the approved bank reconciliations. Criteria: The Code of Federal Regulations (CFR) § 200.303 requires the organization to establish and maintain effective internal control that provides reasonable assurance that the organization is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award.Cause: The Organization experienced significant staff turnover during the year. Effect: Internal controls over operating cash were deficient. Bank reconciliations had to be reperformed after year-end by the new Accountant. Recommendation: Bank reconciliations should include details (list of outstanding items) and be reviewed on a monthly basis. Any gaps in check sequence, stale-dated items and other unusual items should be followed up on and investigated. Bank reconciliations should be done in a timely manner (generally within 30-45 days after month-end). Views of Responsible Officials: Management concurs. See Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Head Start Federal Assistance Listing Number: 93.600 Award Period: June 1, 2022 to May 31, 2023; June 1, 2023 to May 31, 2024; August 1, 2022 to July 31, 2023; April 1, 2021 to March 31, 2023; and August 1, 2023 to July 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs and Other Matters Criteria or Specific Requirement: A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years Under 2CFR section 200.303 A nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing, we noted the Organization's last documented inventory count was taken in 2019. Questioned Costs: N/A Context: The last physical inventory count was taken in 2019. One was in the process of being done in 2023 but was not finished in time for the audit. Cause: The Organization did not take a physical inventory count within the past two years and reconcile to the accounting records; however, they do have procedures in place to monitor the inventory in other ways. The organizations inventory that is building related (renovations, upkeep, equipment), they are constantly discussing with their facilities person regarding buildings, fencing, turfing and playground inventory that required repairs and maintenance. Office inventory is within their site at either of their locations where they are at least several times a year to view and inventory what is there. Management meets throughout the year regarding inventory and budgeted items needed. Effect: Potential for missing, old, or out of use property Repeat Finding: Yes Recommendation: The Organization should ensure a physical inventory count is taken and reconciled to their records at least once every two years. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2023‐001: Significant Deficiency, Internal Control Over Compliance Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 – COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Award Year: 2021 Federal Award Identification: PRF 20210001 Pass‐Through Entity: N/A Criteria: Per 2 CFR 200.303 and 2 CFR 200.430(i), a 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 terms and conditions of the Federal award and establishes the standard for documentation of personnel expenses. Condition: Payroll expenses are an allowed expense according to the guidance and FAQs generated by HRSA. The Medical Center should have controls in place whereby all expenses are reviewed prior to submission to ensure the expense is for the proper purpose. Cause: There was no policy implemented to require the documented approval of a corrected time card. Effect: For one of twenty‐five payroll expenses selected, there was no approval of a corrected time card prior to the payroll being submitted. Questioned Costs: $‐0‐ Perspective: The payroll expense was an allowable costs under the guidance issue by HHS. This finding does not generate any questioned costs or unallowable costs being used in the PRF submission. Recommendation: We recommend the Medical Center implement a process whereby all timesheets (original and corrected) have to be approved by a supervisor prior to payroll being generated and that approval is documented and maintained. Views of Responsible Officials and Planned Corrective Action: Management concurs with auditors’ finding and recommendation. Management’s Response: See attached corrective action plan.
U.S. Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Applicable Federal Award Number – Direct Loan and Guaranteed Loan Special Tests and Provisions Significant Deficiency in Internal Control Over Compliance and Noncompliance Not Considered Material 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: The Medical Center was required to establish reserve accounts with deposits equal to 10% of the annual debt service requirement on the direct loan and guaranteed loan. The Medical Center did not establish these accounts, which were expected to total $48,386, based on three months of required deposits, during 2023. Cause: This deficiency is due to a misunderstanding of establishing reserve accounts as Salina Regional Health Center is the centralized cash management agent for the Medical Center. Effect: The Medical Center was not in compliance with the terms of the loan agreements related to the reserve funds. Questioned Costs: None. Context: Sampling was not used. Repeat Finding from Prior Years: No. Recommendation: We recommend that management create the appropriate reserve accounts, as required under the loan agreements. We recommend management implement a control process to ensure the monthly deposits are made as required, until the accounts are fully funded. Views of Responsible Officials: Management agrees with the finding.
Federal Agency: U.S Department of Agriculture Federal Program Name: Food Distribution Cluster Assistance Listing Number: 10.568, 10.569 Federal Award Identification Number and Year: N/A; 2023 Pass-Through Agency: Indiana Department of Health Pass-Through Number(s): 65260, 68485 Award Period: October 01, 2022 - September 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 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). Condition: Gleaners did not maintain documentation of control sign-offs on all receipts during the year. Questioned costs: None. Context: Gleaners' documentation for receipt of goods did not include the required control sign-offs on 5 of 40 receipts tested under the TEFAP program. Cause: Gleaners did not maintain documentation of control sign-offs on receipts during the year due to staffing shortages and turn-over. Effect: Without documentation of the completed control, there is the risk that Gleaners would have receipted items incorrectly and/or inaccurately under the program. Repeat Finding: No Recommendation: We recommend that Gleaners review its process and procedures to ensure all control sign-offs are maintained on receipts. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S Department of Agriculture Federal Program Name: Food Distribution Cluster Assistance Listing Number: 10.568, 10.569 Federal Award Identification Number and Year: N/A; 2023 Pass-Through Agency: Indiana Department of Health Pass-Through Number(s): 65260, 68485 Award Period: October 01, 2022 - September 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 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). Condition: Gleaners did not maintain documentation of control sign-offs on all receipts during the year. Questioned costs: None. Context: Gleaners' documentation for receipt of goods did not include the required control sign-offs on 5 of 40 receipts tested under the TEFAP program. Cause: Gleaners did not maintain documentation of control sign-offs on receipts during the year due to staffing shortages and turn-over. Effect: Without documentation of the completed control, there is the risk that Gleaners would have receipted items incorrectly and/or inaccurately under the program. Repeat Finding: No Recommendation: We recommend that Gleaners review its process and procedures to ensure all control sign-offs are maintained on receipts. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S Department of Agriculture Federal Program Name: Food Distribution Cluster Assistance Listing Number: 10.568, 10.569 Federal Award Identification Number and Year: N/A; 2023 Pass-Through Agency: Indiana Department of Health Pass-Through Number(s): 65260, 68485 Award Period: October 01, 2022 - September 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 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). Condition: Gleaners did not maintain documentation of control sign-offs on all receipts during the year. Questioned costs: None. Context: Gleaners' documentation for receipt of goods did not include the required control sign-offs on 5 of 40 receipts tested under the TEFAP program. Cause: Gleaners did not maintain documentation of control sign-offs on receipts during the year due to staffing shortages and turn-over. Effect: Without documentation of the completed control, there is the risk that Gleaners would have receipted items incorrectly and/or inaccurately under the program. Repeat Finding: No Recommendation: We recommend that Gleaners review its process and procedures to ensure all control sign-offs are maintained on receipts. Views of responsible officials: There is no disagreement with the audit finding.
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Lack of Internal Control over Reporting Federal Agency: U.S. Department of Homeland Security, U.S. Department of Commerce, U.S. Department of the Interior. Federal Program: Research and Development Cluster ALN: 97.OPA, 11.427, 11.472, 15.654 and 15.945 Award Numbers: Coast Guard Authorization Act of 1996, 23-10-01, 22-10-13, 23-10-03, 20-10-04, NA20NMF4270158, NA17NMF4720018, NA22NMF4720078, NA22NMF4720201, NA19NMF4720069, P22AC01027 Award Years: None, 2023, 2022, 2023, 2020, 2020, 2017, 2022, 2022, 2019, and 2022, respectively Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Title 2 CFR 200.303 requires the Center to establish and maintain effective internal control over the federal award that provides reasonable assurance that the Center is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the grant awards. Title 2 CFR 170 states federal award recipients are required to report each subaward that obligates $30,000 or more in federal funds. This information must be reported no later than the end of the month following the month in which the obligation was made and include information about each obligating action in accordance with submission instructions. Condition and Context: FY23 Federal Funding Accountability and Transparency Act (FFATA) subaward reporting for Long-Term Monitoring & Herring Research & Monitoring, Gulf Watch Alaska Research and Monitoring, and Sustainable Mariculture Development Programs did not occur for subawards. FFATA requires information on federal awards to be made available to the public via a single searchable website (www.usaspending.gov). The FFATA Subaward Reporting System (FSRS) is the reporting tool federal awardees use to capture and report subaward regarding first-tier subawards. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 9 9 0 0 0 Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $2,190,391 $2,190,391 $0 $0 $0 Cause: Lack of internal control over reporting. Effect: Failure to comply with FFATA reporting requirements reduces transparency, impairs decision-making, and may potentially jeopardize future federal funding. Questioned Costs: None. Repeat Finding: This is not a repeat finding. We believe this to be a systemic issue. Recommendation: The Center should develop FFATA reporting policies and procedures to submit subaward award information through FSRS to ensure compliance with FFATA requirements. Management’s Response: Management agrees with this finding. See Corrective Action Plan. .
Identification of the Federal Program - Higher Education Emergency Relief Fund (HEERF) - Assistance Listing Numbers 84.425E, 84.425F, and 84.425M Criteria - The Coronavirus Aid, Relief, and Economic Security (CARES) Act Section 18004(e), the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Section Act 314(e), and the American Rescue Plan (ARP) Section 2003 requires an institution receiving funds under HEERF I, HEERF II, and HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. Per the instructions for the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds, an institution must specify the amount of expended HEERF I, II, and III funds for each funding category. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the College of the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds. Effect - For the reporting period ended December 31, 2022, institutional expenditures of $71,280 were excluded from the report. Cause - The incorrect reporting is attributed to a lack of monitoring and appropriate review of the report by the College. Recommendation - The College should implement policies and procedures to monitor and review all reports. Views of Responsible Officials - The College agrees with the finding. The College will implement additional review procedures over grant reporting. The College will also revise and submit a corrected report.
Identification of the Federal Program - Higher Education Emergency Relief Fund (HEERF) - Assistance Listing Numbers 84.425E, 84.425F, and 84.425M Criteria - The Coronavirus Aid, Relief, and Economic Security (CARES) Act Section 18004(e), the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Section Act 314(e), and the American Rescue Plan (ARP) Section 2003 requires an institution receiving funds under HEERF I, HEERF II, and HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. Per the instructions for the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds, an institution must specify the amount of expended HEERF I, II, and III funds for each funding category. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the College of the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds. Effect - For the reporting period ended December 31, 2022, institutional expenditures of $71,280 were excluded from the report. Cause - The incorrect reporting is attributed to a lack of monitoring and appropriate review of the report by the College. Recommendation - The College should implement policies and procedures to monitor and review all reports. Views of Responsible Officials - The College agrees with the finding. The College will implement additional review procedures over grant reporting. The College will also revise and submit a corrected report.
Identification of the Federal Program - Higher Education Emergency Relief Fund (HEERF) - Assistance Listing Numbers 84.425E, 84.425F, and 84.425M Criteria - The Coronavirus Aid, Relief, and Economic Security (CARES) Act Section 18004(e), the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Section Act 314(e), and the American Rescue Plan (ARP) Section 2003 requires an institution receiving funds under HEERF I, HEERF II, and HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. Per the instructions for the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds, an institution must specify the amount of expended HEERF I, II, and III funds for each funding category. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the College of the Quarterly Budget and Expenditure Reporting for all HEERF I, II, and III Grant Funds. Effect - For the reporting period ended December 31, 2022, institutional expenditures of $71,280 were excluded from the report. Cause - The incorrect reporting is attributed to a lack of monitoring and appropriate review of the report by the College. Recommendation - The College should implement policies and procedures to monitor and review all reports. Views of Responsible Officials - The College agrees with the finding. The College will implement additional review procedures over grant reporting. The College will also revise and submit a corrected report.
Finding 2023‐001: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Controls over Compliance 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: The County’s reports submitted to the Department of Treasury were not reviewed and approved by a separate individual outside of the preparer. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the reports submitted to the Department of Treasury were performed by someone other than the preparer of the report. Effect: Without a secondary review and approval, there is a possibility that the report may not be accurately completed. Questioned Costs: None. Context / Sampling: For the Coronavirus State and Local Fiscal Recovery Funds, a nonstatistical sample of 2 out of 4 reports were tested. Repeat Finding from Prior Year: Yes, prior year finding 2022‐002 Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.
Finding 2023‐003: U.S. Department of the Treasury Federal Financial Assistance Listing 21.027 COVID‐19 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement Suspension and Debarment Type of Finding: Significant Deficiency in Internal Controls over Compliance 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. Per 31 CFR 19.300, prior to enter in subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR § 19.300. Condition: The County did not review two counselors to determine that they were not suspended, debarred, or otherwise excluded prior to entering into a transaction with them. Cause: The County relied on the Department of Public Safety FSCT clearinghouse and review of licensing for review of suspension for the two counselors, but did not review the counselors individually. Effect: Counselors could be suspended, debarred, or otherwise excluded, and the county would not be aware. Questioned Costs: None Context / Sampling: We tested 40 of 371 transactions subject to suspension and debarment in the SLFRF program. Repeat Finding from Prior Year: No Recommendation: The County should review all counselors for suspension and debarment similar to how they review all other vendors. Views of Responsible Officials: Management agrees with the noted finding. Refer to Corrective Action Plan.
Item 2023‐001 Special Tests and Provisions – Wage Rate Requirements (Repeat) Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period – Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425D) Criteria – Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition – Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and to provide timely certified payrolls throughout the construction projects. Cause – A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect – Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that certain payments to contractors selected for testing did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs – $117,000. Recommendation – We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management’s Response – The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received each week in which construction work is performed.
Item 2023‐001 Special Tests and Provisions – Wage Rate Requirements (Repeat) Education Stabilization Fund (ESF) ALN# 84.425 U.S. Department of Education Passed through the State Department of Education Grant period – Years ended September 30, 2021 (84.425U) and September 30, 2020 (84.425D) Criteria – Grantees should have controls in place to ensure that contractors and subcontractors are notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on construction contracts in excess of $2,000 financed by federal assistance funds and to submit weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.326 and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (DOL Regulations) require the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition – Adequate controls were not in place to ensure that contractors and subcontractors were notified of the requirements to comply with the wage rate requirements and to provide timely certified payrolls throughout the construction projects. Cause – A clause describing the Wage Rate Requirements was not added to the construction contracts. There was a lack of sufficient controls over the communication of this requirement to ensure the accuracy and completeness of the certified payrolls being provided to the Board. Effect – Lack of notification of the wage rate requirements to the contractors and subcontractors could lead to disallowed costs. We noted that certain payments to contractors selected for testing did not have supporting documentation of certified payrolls. However, our audit disclosed no instances of unallowable costs. Questioned Costs – $117,000. Recommendation – We recommend the strengthening of controls to ensure the prevailing wage rate clauses are included in the contracts and that certified payrolls are received for each week in which construction work is performed. Management’s Response – The Board will strengthen the controls in place to provide assurance that proper prevailing wage rate clauses are added to construction contracts and certified payrolls are received each week in which construction work is performed.
2023-002 Federal Agency: U.S. Department of the Treasury Program/Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Pass-through: N/A Award No. and Year: N/A, 2022 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria: Per 2 CFR 200.303, 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. This includes internal controls over maintaining records of the review of required reports. Condition: We identified 1 instance in which the City did not document the review of the annual Project and Expenditure Report prior to submission. Cause: The report submission portal does not require an approval by an individual other than the individual that entered the report data. The City’s procedures did not include documenting the review by an individual other than the preparer. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the granting agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: 100% of the annual Project and Expenditure Reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City revise its procedures to include evidence to document the individual who reviewed required reports prior to submission. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See separate corrective action plan.
2023-003 Federal Agency: U.S. Department of the Treasury Program/Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing Number: 21.027 Pass-through: N/A Award No. and Year: N/A, 2022 Compliance Requirement: Procurement, suspension and debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Instance of Noncompliance Criteria: Per 2 CFR part 200, subpart D, section 200.303, the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statues, regulations, and the terms and conditions of the federal award. Prior to entering into subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300. Condition: In 1 instance out of 4 procurements sampled, we could not evidence that management had reviewed the debarment status of a vendor at the time of entering into the contract/agreement, and the agreement did not include a clause regarding debarment status, nor did management obtain a certification of the vendor’s status from the vendor. Cause: The contract/agreement template used by the City did not include the debarment status clause, and management described that a debarment status check was performed on sam.gov at the time of entering into the agreement; however, the project manager overseeing the agreement who retained that documentation is no longer working for the City, and management could not locate the record of the debarment status check being performed. Effect: Entering into contracts with vendors could result in disbursement of Federal funds to suspended or debarred parties. Questioned Costs: None noted. Context/Sampling: A nonstatistical sample of 4 out of 8 contracts were selected. We found that none of the selected vendors were suspended or debarred. Repeat Finding from Prior Year: No. Recommendation: We recommend that the City review its procedures for retaining documentation evidencing the debarment status verifications performed for contracts and agreements through sam.gov. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See separate corrective action plan.
2023-002 GRANT REPORTING U.S. Department of Housing and Urban Development ALN 14.228 – Community Development Block Grants Contract No. IR052 (2022) Passed through the Florida Department of Commerce Criteria: Section (8) of the agreement with the Florida Department of Commerce (DOC), formerly referred to as the Florida Department of Economic Opportunity (DEO), specifies requirements for the submission of monthly, quarterly and administrative reports and other required information. These reports are detailed in Attachment G to the agreement. Section (18) of the agreement with the DOC requires the City to comply with procurement standards in 2 CFR Section 200.318 – 200.327 and Section 200.330. The agreement further requires the City to provide the DOC copies of all proposed procurement documents for their review and approval prior to the obligation or disbursement of any funds (except for administrative expenses). 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with laws and regulations applicable to Federal funding. Condition: The Audit Certification Memo for fiscal year 2022 (due June 30, 2023) and the Section 3 Summary Report (due July 31, 2023) were not filed with the DOC. Further, the Contract and Subcontract Activity report (due on April 15, 2023) was not filed timely (filed September 7, 2023). With regards to the reimbursement request, the initial reporting was rejected due to noncompliance with procurement provisions in the grant agreement. As a result, the DOC denied $74,813 of the City’s request as ineligible expenditures. Cause of condition: The City did not have effective controls in place to ensure that all required reports were submitted on a timely basis to the DOC; nor were effective controls in place to ensure that only vendors that had been procured in accordance with the provisions of the grant agreement were included in the reimbursement request. Potential effect of condition: The City is not in compliance with the reporting requirements set forth by the grantor, nor with the procurement requirements set forth in the contract. Perspective: The City has been in communication with the DOC regarding the Section 3 requirements to assist the City and its contractor to better understand the qualitative efforts needed for hiring and recruitment of Section 3 workers. These communications have been documented on the monthly progress reports submitted to the DOC. Further, the City is in the process of negotiating an amendment to the grantor agreement. An unexecuted draft of this agreement includes language that removes the requirement for the City to file semi-annual Contract and Subcontract Activity forms, replacing them with a close-out report due at completion of the project. The proposed amendment also includes language that will require the Section 3 Summary Report to be filed quarterly rather than annually. With regards to the reimbursement request, the City resubmitted the reimbursement request subsequent to year-end to exclude the vendor identified as ineligible by the DOC. The expenditures reported on the 2023 SEFA were adjusted to reflect only eligible expenditures. Questioned costs: None. Recommendation: The City should review and revise, as needed, its current control structure over grant reporting to ensure that all required reports are prepared, independently reviewed and remitted to the grantor on a timely basis. Once the City obtains an executed amendment to the agreement, the City should update its controls to ensure the changes to the grant reporting are incorporated into their procedures. While reviewing grant agreements prior to being signed, the program manager should coordinate with the Finance Department to ensure that the City has controls in place over compliance with procurement provisions contained in the grant agreement. Management’s Response: The City has filled a position focused mainly on projects and grants reporting. The employee will verify all grant requirements are fulfilled on time and according to the grant contract. Processes are being put in place that will include conversations with the project manager which will ensure they are notified of the necessary steps to fulfill the requirements, as well as final Finance review to ensure compliance.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under 2 CFR 200.313 equipment acquired under a Federal award must be properly managed and proper records must be maintained. These records must contain information pertaining to Federal awards including description of property, serial number or other identification number, source of funding, title, acquisition date and cost of property, condition, ultimate disposition date including disposal, sales price and inventory. A physical inventory of the property must be taken and reconciled at least every two years, control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property, adequate maintenance procedures must be developed to keep the property in good conditions. Per 2 CFR Section 200.303(a) 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). Condition: The County did not maintain accurate and updated equipment inventory listings for equipment purchased with Federal funds in accordance with 2 CFR 200.313. Questioned costs: None Context: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Cause: The County did not have formal policies and procedures in place to manage and maintain equipment inventor records in compliance with 2 CFR 200.313. Effect: The County was not in compliance with the equipment compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County expand upon their capital asset inventory policies and procedures that are used for financial statement purposes to ensure that all equipment purchased with Federal funds are properly managed and maintained throughout the year to ensure all information, including the serial number and equipment location, is accurate and updated. We also recommend that the program personnel responsible for equipment records certify accuracy of the equipment records throughout the year. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of the Transportation Federal Program Name: National Infrastructure Investments Assistance Listing Number: 20.933 Federal Award Identification Number and Year: 693JJ32040007 - 2020 Award Period: 08/03/2020 – 10/31/2024 Type of Finding: Material Weakness in Internal Control over Compliance; Material Noncompliance (Modified Opinion) Criteria or specific requirement: Under Davis-Bacon Act - 40 U.S.C. §§ 3141, et seq., as applicable under 23 U.S.C. 113, prevailing wage requirements each contractor must submit weekly certified payrolls to the contracting agency or entity certified payrolls providing information for each covered worker. Each certified payroll must be accompanied by a "Statement of Compliance" certifying compliance with applicable requirements. Per 2 CFR Section 200.303(a) 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). Condition: The County did not obtain, maintain, or review certified payrolls as required for special provisions Davis Bacon Act for all vendors. Questioned costs: None Context: For two out of the eight payrolls selected for testing, the County did not properly obtain and review certified payrolls provided by subcontractor. The certifications were subsequently collected and reviewed when they were selected for audit testing. Cause: The County did not follow its policies, procedures and internal controls related to obtaining and reviewing certified payrolls from vendors. Effect: The County was not in compliance with the special provision compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County to implement a process and to update its policies and procedures to ensure that all certified payrolls are properly verified and maintained accurately through grant award period and beyond. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG – Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Under reporting for Federal Funding Accountability and Transparency Act (FFATA) requires awardees such as prime contractors and subcontractors to file a FFATA subaward report by the end of the month following the month in which the prime contractor awards or prime grant recipient is awarded any subcontract or grant greater than $30,000. Per 2 CFR Section 200.303(a) 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). Condition: The County did submit FFATA reports after grant award or grant award modifications were made by the dates required. Questioned costs: None Context: For three out of the five FFATA reports selected for testing, the County submitted reports after the due date. Cause: The County’s internal controls did not prevent or detect the noncompliance. Effect: The County was not in compliance with the reporting compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County strengthen policies and procedures to ensure that reporting due dates are adhered to as required by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: CDBG – Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Under reporting for Federal Funding Accountability and Transparency Act (FFATA) requires awardees such as prime contractors and subcontractors to file a FFATA subaward report by the end of the month following the month in which the prime contractor awards or prime grant recipient is awarded any subcontract or grant greater than $30,000. Per 2 CFR Section 200.303(a) 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). Condition: The County did submit FFATA reports after grant award or grant award modifications were made by the dates required. Questioned costs: None Context: For three out of the five FFATA reports selected for testing, the County submitted reports after the due date. Cause: The County’s internal controls did not prevent or detect the noncompliance. Effect: The County was not in compliance with the reporting compliance requirements of the program. Repeat Finding: No Recommendation: We recommend the County strengthen policies and procedures to ensure that reporting due dates are adhered to as required by the Federal regulations and that internal processes mirror the requirements of the Federal regulations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Assistance Listing Number, Federal Agency, and Program Name - 21.023, U.S. Department of the Treasury, COVID-19 - Emergency Rental Assistance Federal Award Identification Number and Year - ERA2-0476 Pass-through Entity - N/A - Direct funded Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.303(a), nonfederal entities 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. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition - The County’s controls over general ledger to schedule of expenditures of federal awards (SEFA) and beneficiary payment database reconciliation did not identify several adjustments that were needed to both the general ledger and the SEFA. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable, as there are no questioned costs Context - The County’s controls to track and reconcile grant activities between the general ledger and SEFA were not adequate to identify all grant activity. As a result, the following adjustments were necessary for the year ended September 30, 2023: • Approximately $550,000 adjustment to record beneficiary payments on the SEFA • Approximately $160,000 adjustment to accrue for subrecipient activity in the general ledger Cause and Effect - The controls in place to ensure that the SEFA and beneficiary payment database reconciled to the general ledger were not effective. As a result, an audit adjustment was posted to the general ledger to record approximately $550,000 of beneficiary payments that was included in the SEFA and beneficiary payment database but not the general ledger. Additionally, the SEFA was initially understated by approximately $160,000 as a result of the County not accruing for its subrecipient activity through September 30, 2023. The SEFA was adjusted to include this amount. Recommendation - We recommend that the County review its processes and controls to ensure that grant activity is properly tracked, properly accounted for in the general ledger, and fully reconciled between the beneficiary database, general ledger, and SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials and Planned Corrective Actions - Management will update processes and controls to ensure completeness of grant activity is received for review and reconciliation.
Assistance Listing Number, Federal Agency, and Program Name 20.509, U.S. Department of Transportation, Formula Grants for Rural Areas Federal Award Identification Number and Year MI 2020 008 07 Pass through Entity Michigan Department of Transportation (MDOT) Finding Type Material weakness Repeat Finding No Criteria As outlined in 2 CFR 200.303, the Authority should have internal controls in place to ensure the accuracy of reimbursement requests submitted to the State. Condition Currently one person prepares the reimbursement requests and no one reviews them for accuracy prior to submitting the requests to the State through the Operating Assistance Report (OAR) for reimbursement. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During our testing of the internal controls related to cash management, Plante & Moran, PLLC noted that there is no independent review of reimbursement requests prepared and submitted to the State by the Authority. Plante & Moran, PLLC did note, through our testing, that the amounts requested for reimbursement did tie to the expenditures recorded in the general ledger for the samples we selected, and, therefore, there are no questioned costs. Cause and Effect Internal control procedures related to compliance with cash management did not exist during the year, which could have resulted in an error on the reimbursement request that did not get caught. Plante & Moran, PLLC did not note any errors on the samples selected for testing. Recommendation Internal control procedures should be implemented to ensure all reimbursement requests are reviewed by an individual who is not charged with preparing those same source documents. Views of Responsible Officials and Planned Corrective Actions Management will identify a new process for OAR assignment and submission. Currently, the OARs are prepared and submitted by the CFO due to staffing limitations. Nevertheless, the CFO will work to identify an individual within the finance department who has the skill set and capacity to prepare the OARs for CFO review prior to submission.
Information on Federal Program: Texas Department of Emergency Management Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or Specific Requirement: 2 CFR 200.303 of the Uniform Guidance requires that non-Federal entities receiving Federal awards establish and maintain internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition: For the $6,525,090 expenditures recorded in the year ended September 30, 2023, of which $174,257 related to the year ended September 30, 2022. Questioned Cost: There are no questioned costs related to this finding. Context: In the testing of total incurred expenditures of $6,525,090 for the year ended September 30, 2023, expenditure of $174,257 should be included in the schedule of expenditures of federal awards for the year ended September 30, 2022. Effect: The failure to maintain the complete schedule of expenditures of federal awards may result in an inaccurate submission to the grantor which can lead to noncompliance with laws and regulations. Cause: The Park Board failed to maintain the complete schedule of expenditures of federal awards. Recommendation: We recommend that the Park Board maintain the complete schedule of expenditures of federal awards. Management Response: We agree with the finding. The procedure of maintaining the complete schedule of expenditures of federal awards will be implemented in fiscal year 2024.