Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Condition: During our review and reconciliation of the Schedule of Expenditures of Federal Awards (SEFA) as initially prepared by the County, we identified federal programs that were not listed accurately which resulted in federal expenditures being overstated stated by $929,420 • Expenditures reported on the SEFA for ALN 16.607 - Bulletproof Vest Partnership Program were $0. Actual federal expenditures obtained from the County’s records confirm $17,235 expended for a variance of ($17,235). • Expenditures reported on the SEFA for ALN 16.554 - National Criminal History Improvement Program (NCHIP) were $0. Actual federal expenditures obtained from the County’s records confirm $1,788 expended for a variance of ($1,788). • Expenditures reported on the SEFA for ALN 21.019 - Coronavirus Relief Fund were $1,100,510. Actual federal expenditures obtained from the County’s records confirm $0 expended for a variance of $1,100,510. • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $144,826 expended for a variance of ($144,826). • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $7,241 expended for a variance of ($7,241). Additionally, the County failed to present $4,199,136 in subrecipient expenditures on the SEFA for ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Cause of Condition: Policies and procedures have not been designed and implemented to ensure accurate reporting of expenditures for all federal awards. Effect of Condition: This condition resulted in inaccurate recording of the federal expenditures on the SEFA. Recommendation: OSAI recommends county officials and department heads gain an understanding of federal programs awarded to Rogers County. Internal control procedures should be designed and implemented to ensure accurate reporting of expenditures on the SEFA and to ensure compliance with federal requirements. The Board of County Commissioners (BOCC) should review and approve SEFA in an open meeting. Management Response: Board of County Commissioners: The Board of County Commissioners is responsible for the overall fiscal concerns of the county. See OKLA. STAT. Title 19, § 345. The Board of County Commissioners, with the cooperation and participation of all elected officials, reviews, develops and implements policies and procedures to create a strong internal control environment. Additionally, the Board of County Commissioners conducts meetings with all elected officials and officers responsible for the receipt and/or expenditure of county funds. These meetings address fiscal matters, including but not limited to, policy discussions and implementation, financial reports, budget oversight, SEFA reporting, and legal compliance. Policies and procedures, combined with fiscal oversight meetings, are intended to: 1) prevent or detect material misstatements in the financial statements; 2) prevent or detect fraud within the county; 3) increase communication between the Board of County Commissioners and those elected officials and officers responsible for the receipt and/or expenditure of public funds; 4) provide oversight over the fiscal concerns of the county; 5) identify and address risks related to financial reporting; 6) ensure the accuracy of Rogers County’s financial statements, Estimate of Needs, and the SEFA; and 7) ensure compliance with all applicable federal and state laws, regulations, and/or codes. The Board of County Commissioners, with the cooperation of all elected officials and officers responsible for the receipt or expenditure of federal funds, will evaluate the processes and procedures currently in place to ensure the accuracy of SEFA reporting and detect potential inaccuracies and/or misstatements. Criteria: 2 CFR § 200.303(a) Internal Controls reads as follows: 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. 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). 2 CFR § 200.508(b) Auditee responsibilities reads as follows: The auditee must: Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. 2 CFR § 200.510(b) Financial statements reads, in part, as follows: Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. Further, GAO Standards – Section 2 – Objectives of an Entity - OV2.23 states in part: Compliance Objectives Management conducts activities in accordance with applicable laws and regulations. As part of specifying compliance objectives, the entity determines which laws and regulations apply to the entity. Management is expected to set objectives that incorporate these requirements.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Human Services (IDHS) Federal Agency: U.S. Department of Agriculture (USDA), U.S. Department of Education (USDE), U.S. Department of Health and Human Services (USDHHS), U.S. Social Security Administration (USSSA) Program Name: Supplemental Nutrition Assistance Program Cluster, Special Supplemental Nutrition Program for Women, Infants, and Children, Rehabilitation Services – Vocational Rehabilitation, Temporary Assistance for Needy Families, Child Care and Development Fund (CCDF) Cluster, Social Services Block Grant, Block Grants for Prevention and Treatment of Substance Abuse, Disability Insurance/SSI Cluster ALN and Program Expenditures: 10.551/10.561 ($5,991,938,129), 10.557 ($168,740,425), 84.126 ($127,053,406), 93.558 ($578,867,422), 93.575/93.596 ($783,907,069), 93.667 ($57,147,970), 93.959 ($101,011,200), 96.001/96.006 ($72,937,910) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-012: Inaccurate Reporting of Federal Expenditures Condition Found: IDHS did not accurately report Federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, Supplemental Nutrition for Women, Infants, and Children (WIC) programs, Vocational Rehabilitation (VR), Temporary Assistance for Needy Families (TANF), Child Care and Development Funds (CCC) Cluster, Social Services Block Grants (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and Disability Insurance/SSI (SSDI) Cluster programs. Federal expenditures, including amounts provided to subrecipients, reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA), did not agree to IDHS’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDHS and the SEFA amounts reported to the IOC for each program for the year ended June 30, 2023: "See Table in the Audit Report". Additionally, the following differences were identified relative to amounts provided to subrecipients for the following major programs: "See Table in the Audit Report". We also noted the cash basis expenditures provided by IDHS for our audit procedures included accrued (not paid) expenditures. Further, we noted amounts passed through to other State agencies from IDHS provided by IDHS for our audit procedures included accrued (not paid) expendituresr. We also noted these same amounts were reported to the IOC and were used to prepare the SEFA. Specifically, we noted expenditures in the following amounts which were not paid in fiscal year ended June 30, 2023 and were erroneously reported as cash basis expenditures for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA and to other State agencies, where applicable. Cause: In discussing these conditions with IDHS officials, management stated that differences in the amounts of federal expenditures and amounts passed through to subrecipients were due to differences in reporting methods fort he SEFA and IDHS’ records. The expenditures in the IDHS’ records come from the agency financial accounting system, SAP. The expenditures in the SEFA come from the annual GAAP reports must reconcile to the Illinois Office of the Comptroller accounting system (SAMS). Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was reported in the prior year audit as finding number 2022-010. (Finding Code 2023-012, 2022-010) Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend IDHS establish procedures to accurately report federal expenditures (including subrecipient expenditures) used to prepare the SEFA to the IOC. Views of IDHS Officials: The Department accepts the recommendation. The Department has created a spreadsheet with all federal expenditure data grouped by ALN, and a tab with only the major program expenditure data comparing it to the IDHS Records/Bucket amount. Any discrepancies between the reporting methodologies are identified and researched.
State Agency: Illinois Department of Employment Security (IDES) Federal Agency: U.S. Department of Labor (USDOL) Program Name: Unemployment Insurance Program ALN and Program Expenditures: 17.225 ($1,931,585,889) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-042: Inaccurate Reporting of Federal Expenditures Condition Found: IDES did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Federal expenditures reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA) did not agree to IDES’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDES and the SEFA amounts reported to the IOC for the Unemployment Insurance program for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDES’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure timely, complete, and accurate SEFA reporting. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA. Cause: In discussing the error with IDES officials, they stated during the Financial Audit, it was determined IDES needed two adjustments to their financial statements. These adjustments affected the SEFA expenditures. The first adjustment concerning the financial statements was caused by the bank's calculation of the nightly sweep for the collateralization of our funds at INB. The bank's instructions for the nightly sweep calculation did not match the bank's actual sweep and the difference appeared like NSF returns. The second adjustment concerning the financial statement was caused by the under reporting of the Combined Wage Claims. In addition, IDES included State spending within Federal expenditures on the SEFA in error, causing an overstatement of Federal expenditures. This resulted from following pre-pandemic procedures and reports that did not contemplate the State spending of administrative funds on Federal programs. Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was not reported in the prior year audit. (Finding Code 2023-042) Recommendation: We recommend IDES establish procedures to accurately report federal expenditures used to prepare the SEFA to the IOC. Views of IDES Officials: The Agency accepts the recommendation. The Agency is updating the way it prepares the Trust Fund GAAP package to avoid these types of adjustments and/or audit findings in the future.
State Agency: Illinois Department of Employment Security (IDES) Federal Agency: U.S. Department of Labor (USDOL) Program Name: Unemployment Insurance Program ALN and Program Expenditures: 17.225 ($1,931,585,889) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-042: Inaccurate Reporting of Federal Expenditures Condition Found: IDES did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Federal expenditures reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA) did not agree to IDES’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDES and the SEFA amounts reported to the IOC for the Unemployment Insurance program for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDES’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure timely, complete, and accurate SEFA reporting. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA. Cause: In discussing the error with IDES officials, they stated during the Financial Audit, it was determined IDES needed two adjustments to their financial statements. These adjustments affected the SEFA expenditures. The first adjustment concerning the financial statements was caused by the bank's calculation of the nightly sweep for the collateralization of our funds at INB. The bank's instructions for the nightly sweep calculation did not match the bank's actual sweep and the difference appeared like NSF returns. The second adjustment concerning the financial statement was caused by the under reporting of the Combined Wage Claims. In addition, IDES included State spending within Federal expenditures on the SEFA in error, causing an overstatement of Federal expenditures. This resulted from following pre-pandemic procedures and reports that did not contemplate the State spending of administrative funds on Federal programs. Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was not reported in the prior year audit. (Finding Code 2023-042) Recommendation: We recommend IDES establish procedures to accurately report federal expenditures used to prepare the SEFA to the IOC. Views of IDES Officials: The Agency accepts the recommendation. The Agency is updating the way it prepares the Trust Fund GAAP package to avoid these types of adjustments and/or audit findings in the future.
State Agency: Illinois Department of Employment Security (IDES) Federal Agency: U.S. Department of Labor (USDOL) Program Name: Unemployment Insurance Program ALN and Program Expenditures: 17.225 ($1,931,585,889) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-042: Inaccurate Reporting of Federal Expenditures Condition Found: IDES did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Federal expenditures reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA) did not agree to IDES’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDES and the SEFA amounts reported to the IOC for the Unemployment Insurance program for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDES’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure timely, complete, and accurate SEFA reporting. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA. Cause: In discussing the error with IDES officials, they stated during the Financial Audit, it was determined IDES needed two adjustments to their financial statements. These adjustments affected the SEFA expenditures. The first adjustment concerning the financial statements was caused by the bank's calculation of the nightly sweep for the collateralization of our funds at INB. The bank's instructions for the nightly sweep calculation did not match the bank's actual sweep and the difference appeared like NSF returns. The second adjustment concerning the financial statement was caused by the under reporting of the Combined Wage Claims. In addition, IDES included State spending within Federal expenditures on the SEFA in error, causing an overstatement of Federal expenditures. This resulted from following pre-pandemic procedures and reports that did not contemplate the State spending of administrative funds on Federal programs. Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was not reported in the prior year audit. (Finding Code 2023-042) Recommendation: We recommend IDES establish procedures to accurately report federal expenditures used to prepare the SEFA to the IOC. Views of IDES Officials: The Agency accepts the recommendation. The Agency is updating the way it prepares the Trust Fund GAAP package to avoid these types of adjustments and/or audit findings in the future.
State Agency: Illinois Department of Employment Security (IDES) Federal Agency: U.S. Department of Labor (USDOL) Program Name: Unemployment Insurance Program ALN and Program Expenditures: 17.225 ($1,931,585,889) Award Numbers: Various – see schedule of award numbers Federal Award Year: Various – see schedule of award numbers Questioned Costs: None Compliance Requirement: None Finding 2023-042: Inaccurate Reporting of Federal Expenditures Condition Found: IDES did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Federal expenditures reported to the Illinois Office of Comptroller (IOC) which were used to prepare the schedule of expenditure of federal awards (SEFA) did not agree to IDES’ financial records provided for audit. Specifically, we noted the following differences between amounts provided for audit by IDES and the SEFA amounts reported to the IOC for the Unemployment Insurance program for the year ended June 30, 2023: "See Table in the Audit Report". Finally, we noted IDES’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure timely, complete, and accurate SEFA reporting. Criteria or Requirement: According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Among other things required by 2 CFR 200.510(b), the SEFA must include the total amount provided to subrecipients from each Federal program. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately reported on the SEFA. Cause: In discussing the error with IDES officials, they stated during the Financial Audit, it was determined IDES needed two adjustments to their financial statements. These adjustments affected the SEFA expenditures. The first adjustment concerning the financial statements was caused by the bank's calculation of the nightly sweep for the collateralization of our funds at INB. The bank's instructions for the nightly sweep calculation did not match the bank's actual sweep and the difference appeared like NSF returns. The second adjustment concerning the financial statement was caused by the under reporting of the Combined Wage Claims. In addition, IDES included State spending within Federal expenditures on the SEFA in error, causing an overstatement of Federal expenditures. This resulted from following pre-pandemic procedures and reports that did not contemplate the State spending of administrative funds on Federal programs. Possible Asserted Effect: Failure to accurately report federal expenditures prohibits the completion of an audit in accordance with the Uniform Guidance which may result in the suspension of federal funding. Repeat Finding: A similar finding was not reported in the prior year audit. (Finding Code 2023-042) Recommendation: We recommend IDES establish procedures to accurately report federal expenditures used to prepare the SEFA to the IOC. Views of IDES Officials: The Agency accepts the recommendation. The Agency is updating the way it prepares the Trust Fund GAAP package to avoid these types of adjustments and/or audit findings in the future.
FINDING NO: 2023-011 (Repeat 2022-026) STATE AGENCY: Oklahoma Department of Transportation FEDERAL AGENCY: U.S. Department of Transportation ALN: 20.509 FEDERAL PROGRAM NAME: Formula Grants for Rural Areas FEDERAL AWARD NUMBER: OK-2017-023-05, OK-2018-023-03, OK-2019-025-03, OK-2020-021-02, OK- 2021-018-00, OK-2022-016-00, OK-2022-025-00, OK-2022-027-00, OK-2023-026-00 FEDERAL AWARD YEAR: 2017, 2018, 2019, 2020, 2021, 2022, 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR 1201.1 states, “Except as otherwise provided in this part, the Department of Transportation adopts the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200). This part supersedes and repeals the requirements of the Department of Transportation Common Rules (49 CFR part 18 - Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments and 49 CFR part 19 - Uniform Administrative Requirements - Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations), except that grants and cooperative agreements executed prior to December 26, 2014 shall continue to be subject to 49 CFR parts 18 and 19 as in effect on the date of such grants or agreements. New parts with terminology specific to the Department of Transportation follow.” 2 CFR §200.303 - Internal controls states in part, “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.” 2 CFR §200.502 (a), states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR §200.510 (b), states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 [Basis for determining Federal awards expended]… (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program.” Condition and Context: During the review of GAAP Package Z - Schedule of Expenditures of Federal Awards (SEFA) and supporting documentation for Formula Grants for Rural Areas, AL #20.509, we noted the amounts reported as paid to subrecipients did not match the accounting system of the Oklahoma Department of Transportation. The total subrecipient payments per the SEFA subrecipient column were $19,543,377; the Oklahoma Department of Transportation Project Funding System showed expenditures totaling $23,039,138.46. Cause: The Oklahoma Department of Transportation’s review process failed to identify the discrepancy between the GAAP Package Z and the accounting system. Effect: The total of sub-recipient expenditures for AL #20.509 per SEFA were understated by a total of $3,495,761.46: Formula Grants for Rural Areas subrecipient expenditures were understated by $2,065,333.46 and Formula Grants for Rural Areas - CARES Act subrecipient expenditures were understated for $1,430,428.00. Recommendation: We recommend the Department add steps to reconcile the subrecipient expenditures during its review process to ensure subrecipient expenditure amounts reported on the GAAP Package Z SEFA are properly stated and agree with accounting software. Views of Responsible Official(s) Contact Person: Sam Ddamba Anticipated Completion Date: September 2025 Corrective Action Planned: The Oklahoma Department of Transportation agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-011 (Repeat 2022-026) STATE AGENCY: Oklahoma Department of Transportation FEDERAL AGENCY: U.S. Department of Transportation ALN: 20.509 FEDERAL PROGRAM NAME: Formula Grants for Rural Areas FEDERAL AWARD NUMBER: OK-2017-023-05, OK-2018-023-03, OK-2019-025-03, OK-2020-021-02, OK- 2021-018-00, OK-2022-016-00, OK-2022-025-00, OK-2022-027-00, OK-2023-026-00 FEDERAL AWARD YEAR: 2017, 2018, 2019, 2020, 2021, 2022, 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR 1201.1 states, “Except as otherwise provided in this part, the Department of Transportation adopts the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200). This part supersedes and repeals the requirements of the Department of Transportation Common Rules (49 CFR part 18 - Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments and 49 CFR part 19 - Uniform Administrative Requirements - Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations), except that grants and cooperative agreements executed prior to December 26, 2014 shall continue to be subject to 49 CFR parts 18 and 19 as in effect on the date of such grants or agreements. New parts with terminology specific to the Department of Transportation follow.” 2 CFR §200.303 - Internal controls states in part, “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.” 2 CFR §200.502 (a), states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR §200.510 (b), states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 [Basis for determining Federal awards expended]… (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program.” Condition and Context: During the review of GAAP Package Z - Schedule of Expenditures of Federal Awards (SEFA) and supporting documentation for Formula Grants for Rural Areas, AL #20.509, we noted the amounts reported as paid to subrecipients did not match the accounting system of the Oklahoma Department of Transportation. The total subrecipient payments per the SEFA subrecipient column were $19,543,377; the Oklahoma Department of Transportation Project Funding System showed expenditures totaling $23,039,138.46. Cause: The Oklahoma Department of Transportation’s review process failed to identify the discrepancy between the GAAP Package Z and the accounting system. Effect: The total of sub-recipient expenditures for AL #20.509 per SEFA were understated by a total of $3,495,761.46: Formula Grants for Rural Areas subrecipient expenditures were understated by $2,065,333.46 and Formula Grants for Rural Areas - CARES Act subrecipient expenditures were understated for $1,430,428.00. Recommendation: We recommend the Department add steps to reconcile the subrecipient expenditures during its review process to ensure subrecipient expenditure amounts reported on the GAAP Package Z SEFA are properly stated and agree with accounting software. Views of Responsible Official(s) Contact Person: Sam Ddamba Anticipated Completion Date: September 2025 Corrective Action Planned: The Oklahoma Department of Transportation agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-056 STATE AGENCY: State of Oklahoma and Office of Management and Enterprise Services (OMES) FEDERAL AGENCY: U.S. Department of the Treasury ALN: 21.027 FEDERAL PROGRAM NAME: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) FEDERAL AWARD NUMBER: N/A FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 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.” 2 CFR § 200.502(a) states in part, “Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” 2 CFR § 200.510(b) states in part, “Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with §200.502. … (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available.” Condition and Context: The State of Oklahoma had sixteen (16) state agencies report CSLFRF expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for SFY 2023. The state created class fund 488 (ARPA Advance Grants) for administrative costs to run the grant, and class fund 497 (Statewide Recovery Fund) to facilitate the transfer of CSLFRF funds to agencies. Class fund 488 only applies to State of Oklahoma OMES - Grants Management Office (GMO) and class fund 497 applies to all agencies. For the thirteen (13) state agencies audited by the State Auditor’s Office, we noted the following SEFA exceptions: • Four agencies (Department of Health – agency 340; Legislative Services Bureau – agency 423; J.D. McCarty Center – agency 670; and Oklahoma Supreme Court – agency 677) did not include, but should have reported expenditures for, AL #21.027 CSLFRF on their SEFA • Three agencies (Health Care Workforce Training Commission – agency 619; Career Tech – agency 800; and Department of Human Services – agency 830) included AL #21.027 CSLFRF on their SEFA but did not accurately report their expenditures • One agency (Department of Public Safety – agency 585) failed to record AL #21.027 CSLFRF federal revenue on their SEFA • One agency (Office of Management and Enterprise Services – agency 090) did not accurately report expenditures: administrative payroll for class fund 488 (ARPA Advance Grants) was not included on their SEFA Based on testwork performed by State Auditor’s Office on CSLFRF state agency SEFA expenditures for SFY 2023, we determined the state agencies reported $12,307,194; and the correct SEFA total should have been $23,003,285. Further, when including outside audits of state agency CSLFRF funds, we determined total modified accrual federal expenditures reported were $66,697,853; however, the correct CSLFRF SEFA total for SFY 2023 should have been $77,393,944. Cause: The State of Oklahoma had no process, and failed to implement adequate controls, to ensure a SEFA was completed for each agency receiving CSLFRF funds. State agencies (090, 340, 423, 585, 619, 670, 677, 800, 830) lacked adequate controls to ensure SEFA expenditures, or federal revenue, for AL #21.027 were reported correctly. State agencies (340, 423, 585, 619, 670, 677, 800, 830) did not review the Summary of Receipts and Disbursements (SRD) report for class fund 497 (Statewide Recovery Fund) to ensure all federal expenditures were included on their SEFA. In addition, agency 090 did not review the SRD report for class funds 488 and 497 to ensure expenditures were included on the statewide SEFA. Effect: The State of Oklahoma under-reported SEFA expenditures by $10,696,091 for SFY 2023. In addition, agency 585 under-reported $858,278 in federal revenue. Recommendation: We recommend OMES ensure that state agencies strengthen controls over their SEFA process to ensure accurate reporting of CSLFRF expenditures, including a review of the SRD for class fund 497 to ensure CSLFRF expenditures are reported on their SEFA. Further, we recommend the State of Oklahoma review the SRD for class fund 497 (and 488 for agency 090) for the agencies that are transferred CSLFRF funds to ensure those with expenditures complete a SEFA. In addition, we recommend the State of Oklahoma reconcile state agency SEFAs to the SRD for class fund 497 (and 488 for agency 090) to ensure expenditures are reported accurately. Views of Responsible Official(s) Contact Person: OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson Anticipated Completion Date: 06/30/2026 Corrective Action Planned: The Office of Management Enterprise Services – Grants Management Office agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
Criteria or Specific Requirement: Under 2 CFR Part 200.502, the auditee must prepare the Schedule of Federal Awards to cover the appropriate audit period and to include all applicable federal expenditures expended during the audit period. Condition: The City has not historically created or provided a Schedule of Federal Awards for audit purposes and did not include all federal expenditures as required under 2 CFR Part 200.502. Context: The City did not have all federal expenditures recorded in their trial balance, and did not have accurate records of all expenditures spent during the audit period. In addition, they did not have all of the necessary information or training to create the Schedule of Federal Awards. Questioned Costs: None Effect: The City was unable to provide auditors with a complete Schedule of Federal Awards, and could not verify the completeness of expenditures recorded in their financial statements as provided for the audit. Cause: The City does not have processes in place to track all grant spending. Repeat: No Auditor's Recommendation: We recommend that the City create processes and procedures that capture all federal funding received, and track applicable expenditures. This report should be reconciled regularly (at least monthly) when requests for reimbursement are made, and should include all applicable information necessary to identify the funding agency, assistance listing number, and any other pertinent passthrough information. With this process in place, the City will be better able to track and monitor grant funding, plan future projects or future funding needs, and prepare for the annual audit. View of Responsible Officials: Management concurs with the Auditor’s recommendation and will review with the third-party North Central Illinois Council of Governments (NCICG) to establish appropriate City monitoring and review. City will also review with prior City Auditors to ensure proper overall procedures are in place to ensure all grants in the aggregate are monitored.
Criteria or Specific Requirement: Under 2 CFR Part 200.502, the auditee must prepare the Schedule of Federal Awards to cover the appropriate audit period and to include all applicable federal expenditures expended during the audit period. Condition: The City has not historically created or provided a Schedule of Federal Awards for audit purposes and did not include all federal expenditures as required under 2 CFR Part 200.502. Context: The City did not have all federal expenditures recorded in their trial balance, and did not have accurate records of all expenditures spent during the audit period. In addition, they did not have all of the necessary information or training to create the Schedule of Federal Awards. Questioned Costs: None Effect: The City was unable to provide auditors with a complete Schedule of Federal Awards, and could not verify the completeness of expenditures recorded in their financial statements as provided for the audit. Cause: The City does not have processes in place to track all grant spending. Repeat: No Auditor's Recommendation: We recommend that the City create processes and procedures that capture all federal funding received, and track applicable expenditures. This report should be reconciled regularly (at least monthly) when requests for reimbursement are made, and should include all applicable information necessary to identify the funding agency, assistance listing number, and any other pertinent passthrough information. With this process in place, the City will be better able to track and monitor grant funding, plan future projects or future funding needs, and prepare for the annual audit. View of Responsible Officials: Management concurs with the Auditor’s recommendation and will review with the third-party North Central Illinois Council of Governments (NCICG) to establish appropriate City monitoring and review. City will also review with prior City Auditors to ensure proper overall procedures are in place to ensure all grants in the aggregate are monitored.
Criteria or Specific Requirement: Under 2 CFR Part 200.502, the auditee must prepare the Schedule of Federal Awards to cover the appropriate audit period and to include all applicable federal expenditures expended during the audit period. Condition: The City has not historically created or provided a Schedule of Federal Awards for audit purposes and did not include all federal expenditures as required under 2 CFR Part 200.502. Context: The City did not have all federal expenditures recorded in their trial balance, and did not have accurate records of all expenditures spent during the audit period. In addition, they did not have all of the necessary information or training to create the Schedule of Federal Awards. Questioned Costs: None Effect: The City was unable to provide auditors with a complete Schedule of Federal Awards, and could not verify the completeness of expenditures recorded in their financial statements as provided for the audit. Cause: The City does not have processes in place to track all grant spending. Repeat: No Auditor's Recommendation: We recommend that the City create processes and procedures that capture all federal funding received, and track applicable expenditures. This report should be reconciled regularly (at least monthly) when requests for reimbursement are made, and should include all applicable information necessary to identify the funding agency, assistance listing number, and any other pertinent passthrough information. With this process in place, the City will be better able to track and monitor grant funding, plan future projects or future funding needs, and prepare for the annual audit. View of Responsible Officials: Management concurs with the Auditor’s recommendation and will review with the third-party North Central Illinois Council of Governments (NCICG) to establish appropriate City monitoring and review. City will also review with prior City Auditors to ensure proper overall procedures are in place to ensure all grants in the aggregate are monitored.
Criteria or Specific Requirement: Under 2 CFR Part 200.502, the auditee must prepare the Schedule of Federal Awards to cover the appropriate audit period and to include all applicable federal expenditures expended during the audit period. Condition: The City has not historically created or provided a Schedule of Federal Awards for audit purposes and did not include all federal expenditures as required under 2 CFR Part 200.502. Context: The City did not have all federal expenditures recorded in their trial balance, and did not have accurate records of all expenditures spent during the audit period. In addition, they did not have all of the necessary information or training to create the Schedule of Federal Awards. Questioned Costs: None Effect: The City was unable to provide auditors with a complete Schedule of Federal Awards, and could not verify the completeness of expenditures recorded in their financial statements as provided for the audit. Cause: The City does not have processes in place to track all grant spending. Repeat: No Auditor's Recommendation: We recommend that the City create processes and procedures that capture all federal funding received, and track applicable expenditures. This report should be reconciled regularly (at least monthly) when requests for reimbursement are made, and should include all applicable information necessary to identify the funding agency, assistance listing number, and any other pertinent passthrough information. With this process in place, the City will be better able to track and monitor grant funding, plan future projects or future funding needs, and prepare for the annual audit. View of Responsible Officials: Management concurs with the Auditor’s recommendation and will review with the third-party North Central Illinois Council of Governments (NCICG) to establish appropriate City monitoring and review. City will also review with prior City Auditors to ensure proper overall procedures are in place to ensure all grants in the aggregate are monitored.