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: 2023-202 STATE AGENCY: State of Oklahoma 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: The Uniform Guidance (2 CFR 200) §200.510 states in part an auditee should “prepare a schedule of expenditures of federal awards (“SEFA”) for the period covered by the auditee’s financial statement [that]… at a minimum shall… provide total federal awards expended for each individual program…”. The SEFA, Oklahoma Office of Management and Enterprise Services’ (“OMES”) Schedule Z should accurately capture all expenditures, and be reconciled and reviewed, by the Oklahoma Water Resources Board (“OWRB”). Adequate documentation of procedures performed as well as evidence of thorough reviews should be in place. According to generally accepted accounting principles (“GAAP”), expenditures should be recognized in the period incurred. Condition and Context: The original SEFA submitted by OWRB to OMES included the following errors: • Approximately $193,540,000 in cash transfers to OWRB’s Trustee were improperly recorded as expenditures. • Approximately $75,979,000 of subsequent cash transfers to OWRB’s Trustee were improperly accrued as accounts payable in fiscal year 2023, resulting in a further overstatement of expenditures. Cause and Effect: OWRB received Board approval as required in accordance with Oklahoma Statue Title 785 §50.15.1 to make grant awards of American Rescue Plan Act (“ARPA”) funds to qualified entities for qualified project purposes. Upon receiving the necessary approvals, OWRB then transferred cash from the Oklahoma State Treasurer to its Trustee’s bank accounts, earmarking the cash dedicated to a subrecipient’s future project. In doing so, an approved purchase order and voucher was submitted to OMES, which resulted in expenditures being recorded in the statewide accounting system, PeopleSoft. These funds are maintained in the Trustee bank accounts and invested in highly liquid cash equivalents in accordance with Oklahoma Statute Title 62 §348.1, earning a higher rate of interest for the program. As a result of the cash transfers erroneously being reported as expenditures, the GAAP reporting of federal spending in Assistance Listing Number 21.027 was materially overstated by a total of approximately $268,407,000 for fiscal year ending June 30, 2023. Recommendation: We recommend OWRB’s management works with OMES to appropriately reflect cash transfers to the Trustee bank as a journal entry from cash to restricted cash, along with recording the actual expenditures as a reduction to restricted cash. Lastly, as expenditures are incurred, we recommend reducing the transfer in from state to then recognize the corresponding revenue earned as claim reimbursements are made to subrecipients. Views of Responsible Official(s) Contact Person: Cleve Pierce, Chief of Administrative Services/CFO, Jessica Billingsley, Comptroller/Financial Manager Anticipated Completion Date: 6/30/25 Corrective Action Planned: The Oklahoma Water Resources Board 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: 2023-202 STATE AGENCY: State of Oklahoma 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: The Uniform Guidance (2 CFR 200) §200.510 states in part an auditee should “prepare a schedule of expenditures of federal awards (“SEFA”) for the period covered by the auditee’s financial statement [that]… at a minimum shall… provide total federal awards expended for each individual program…”. The SEFA, Oklahoma Office of Management and Enterprise Services’ (“OMES”) Schedule Z should accurately capture all expenditures, and be reconciled and reviewed, by the Oklahoma Water Resources Board (“OWRB”). Adequate documentation of procedures performed as well as evidence of thorough reviews should be in place. According to generally accepted accounting principles (“GAAP”), expenditures should be recognized in the period incurred. Condition and Context: The original SEFA submitted by OWRB to OMES included the following errors: • Approximately $193,540,000 in cash transfers to OWRB’s Trustee were improperly recorded as expenditures. • Approximately $75,979,000 of subsequent cash transfers to OWRB’s Trustee were improperly accrued as accounts payable in fiscal year 2023, resulting in a further overstatement of expenditures. Cause and Effect: OWRB received Board approval as required in accordance with Oklahoma Statue Title 785 §50.15.1 to make grant awards of American Rescue Plan Act (“ARPA”) funds to qualified entities for qualified project purposes. Upon receiving the necessary approvals, OWRB then transferred cash from the Oklahoma State Treasurer to its Trustee’s bank accounts, earmarking the cash dedicated to a subrecipient’s future project. In doing so, an approved purchase order and voucher was submitted to OMES, which resulted in expenditures being recorded in the statewide accounting system, PeopleSoft. These funds are maintained in the Trustee bank accounts and invested in highly liquid cash equivalents in accordance with Oklahoma Statute Title 62 §348.1, earning a higher rate of interest for the program. As a result of the cash transfers erroneously being reported as expenditures, the GAAP reporting of federal spending in Assistance Listing Number 21.027 was materially overstated by a total of approximately $268,407,000 for fiscal year ending June 30, 2023. Recommendation: We recommend OWRB’s management works with OMES to appropriately reflect cash transfers to the Trustee bank as a journal entry from cash to restricted cash, along with recording the actual expenditures as a reduction to restricted cash. Lastly, as expenditures are incurred, we recommend reducing the transfer in from state to then recognize the corresponding revenue earned as claim reimbursements are made to subrecipients. Views of Responsible Official(s) Contact Person: Cleve Pierce, Chief of Administrative Services/CFO, Jessica Billingsley, Comptroller/Financial Manager Anticipated Completion Date: 6/30/25 Corrective Action Planned: The Oklahoma Water Resources Board agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-206 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.268 FEDERAL PROGRAM NAME: Immunizations Cooperative Agreements FEDERAL AWARD NUMBER: 6 NH23IP922575-02-05, 6 NH23IP922575-02-06, 6 NH23IP922575-03-01, 5 NH23IP922575-003-00 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.268 reported federal revenues approximately $3,648,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine completeness of the expenditure details provided for audit testing. • 29 out of 138, or 21%, of tested federal expenditure selections for AL# 93.268 were recorded in an incorrect accounting period, which totaled approximately $85,400. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.268 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-206 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.268 FEDERAL PROGRAM NAME: Immunizations Cooperative Agreements FEDERAL AWARD NUMBER: 6 NH23IP922575-02-05, 6 NH23IP922575-02-06, 6 NH23IP922575-03-01, 5 NH23IP922575-003-00 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.268 reported federal revenues approximately $3,648,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine completeness of the expenditure details provided for audit testing. • 29 out of 138, or 21%, of tested federal expenditure selections for AL# 93.268 were recorded in an incorrect accounting period, which totaled approximately $85,400. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.268 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-207 (Repeat Finding 2022-202) STATE AGENCY: Oklahoma Department of Health FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases FEDERAL AWARD NUMBER: NU50CK000535-02-04, NU50CK000535-02-06, NU50CK000535-01-04, NU50CK000535-01-05 FEDERAL AWARD YEAR: 2020, 2021, 2022 CONTROL CATEGORY: Reporting QUESTIONED COSTS: Unknown Criteria: The Schedule of Expenditures of Federal Awards (SEFA – GAAP Package Schedule Z) should be accurately captured, reconciled, and reviewed by the Oklahoma State Department of Health (the “Department”). Adequate documentation of procedures performed, as well as evidence of thorough reviews, should be in place. According to GAAP, expenditures should be recognized in the period services are performed or goods are received. In accordance with the modified accrual basis of accounting, federal grant revenues should be recognized when applicable eligibility requirements, including reimbursement, time requirements, and other eligibility requirements, are met and the resources are available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. In accordance with the State of Oklahoma’s Annual Comprehensive Financial Report, the State considers revenues to be available if they are collected within sixty days of the end of the fiscal year. Additionally, the Federal Financial Report (FFR), SF-425, is required on an annual basis except for awards where more frequent reporting is noted in the Notice of Award. The report also must cover any authorized extension during the reported budget period. Grant recipients submit FFRs to the U.S. Department of Health and Human Services (HHS) Payment Management System (PMS). Annual FFRs are due 90 days after the end of the budget period and final FFRs are due 90 days after the end of the period of performance. Lastly, The Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expended for each individual Federal program… [and] include the total amount provided to subrecipients for each Federal program” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Furthermore, the State of Oklahoma’s Schedule Z SEFA Conversion Package states, “The amount reported as provided by the primary recipient to state agencies should be entered in the ‘Amount Transferred to State Agencies’ column. This amount should be included in the Federal revenue but not in expense columns of the primary recipient.” Condition: The original SEFA submitted by the Department to the Office of Management and Enterprise Services (OMES) included the following errors: • AL# 93.323 reported federal revenues approximately $25,358,000 higher than its federal expenditures for a predominately reimbursement-based grant, resulting in the inability to determine the completeness of the expenditure details provided for audit testing. • Approximately $9,776,000 in state transfers to the Department of Education were omitted from subrecipient payments for AL# 93.323 in accordance with the State’s Schedule Z Conversion Package. • 39 out of 138, or 28%, of tested federal expenditure selections for AL# 93.323 were recorded in an incorrect accounting period, which totaled approximately $4,993,100. Additionally, the department was unable to provide supporting details of recorded transactions agreeing to the federal revenues reported in Schedule Z. Furthermore, all FFR’s tested for AL# 93.323 were not timely filed within 90 days subsequent to year end, as required by the Center for Disease Control and Prevention (CDC). Supporting schedules to FFRs for AL# 93.323 were not made available for audit testing. Cause and Effect: The Department does not have appropriate internal procedures for capturing and reporting the federal expenditures, revenues, and subrecipient payments on the SEFA in accordance with the Uniform Guidance (2 CFR 200) § 200.510. Revenues are recorded by the department on a cash basis and deposits are not recorded in the general ledger (GL) with a unique identifier to indicate which fiscal year the matching expenditures reside. Also, batched cash deposits containing sources of revenues from differing fiscal years cannot be appropriately allocated to the year in which the revenue was earned. Batched deposits are recorded as a single GL transaction regardless of the year the related deposit was earned and contain revenues where the related expenditures were recorded in differing fiscal years. As a result, the Department’s GL does not possess sufficient detail to accurately account for the required modified accrual basis conversions. The Department has not ensured that the transactional data recorded provides enough detail to accurately report the federal activity in Schedule Z and FFR’s. Recommendation: We recommend the Department review and document the current procedures and implement the necessary changes to ensure adequate reporting of program financial information in the SEFA and FFR’s. Specifically, we recommend the Department continues to review its cash reporting and deciphers batch deposits by fiscal year, with a unique identifier recorded at the GL transaction level. Additionally, we recommend retaining evidence that adequate reviews of the SEFA and FFR’s occurred. We also recommend the Department establish procedures to timely reconcile federal revenues to its federal expenditures to ensure completeness of its related federal reporting. Views of Responsible Official(s) Contact Person: Stefan Von Dollen Anticipated Completion Date: 6/30/24 Corrective Action Planned: The Oklahoma State Department of Health agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-211 STATE AGENCY: Oklahoma Department of Education FEDERAL AGENCY: United States Department of Health and Human Services ALN: 93.323 FEDERAL PROGRAM NAME: Epidemiology and Laboratory Capacity for Infectious Diseases, passed through the Oklahoma State Department of Health FEDERAL AWARD NUMBER: NU50CK000535 FEDERAL AWARD YEAR: 2023 CONTROL CATEGORY: Other/Reporting QUESTIONED COSTS: Unknown Criteria: Per 2 CFR §200.303(a), 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. A key component of an effective internal control system is a strong control environment, including a culture of integrity and ethical values fostered by the organization’s leadership. Additionally, the Uniform Guidance (2 CFR 200) § 200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statement [that]….at a minimum shall… provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (AL#) or other identifying number when the AL# information is not available.” In accordance with Uniform Guidance, the Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition and Context: During our audit of the AL# 93.323, Epidemiology Laboratory Capacity (“ELC”), we observed that the Oklahoma State Department of Education (OSDE”) did not adequately establish and/or enforce internal control procedures. Specifically, we noted the following: Inconsistent application of accounting and governing body policies. Leadership of OSDE did not set an adequate tone at the top for appropriate fiscal responsibility of funds. The Department’s previous management did not maintain adequate procedural manuals and internal control narratives to ensure effective internal controls over their accounting records. Accounting records were not supported by appropriate subsidiary records to permit the preparation of accurate federal expenditure reporting on a timely basis. Procedures were not in place to ensure that underlying transactions recorded in the statewide PeopleSoft accounting system were reconciled by appropriate grant source and reported to the State in accordance with the State of Oklahoma’s Schedule Z Schedule of Expenditures of Federal Awards (“SEFA”) Conversion Package, with an approximate $1,550,000 variance between the underlying accounting records versus reported spend per Schedule Z. Cause and Effect: A lack of internal control procedures increases the risk of noncompliance with federal awards. Furthermore, the tone at the top set by leadership of OSDE has not prioritized compliance with laws and regulations and allowable uses of federal awards. Significant turnover of personnel at OSDE resulted in existing management’s inability to reconcile the underlying accounting records to prior management’s reported spend of AL# 93.323 reported per the SEFA Schedule Z. As a result, a variance of approximately $1,550,000 existed between the statewide PeopleSoft accounting system and the reported federal spending per Schedule Z for AL#93.323. Recommendation: We recommend management now in place in the Comptroller’s office of OSDE adequately documents internal control procedures and reconciles federal expenditures to the appropriate funding sources in the statewide accounting system. Views of Responsible Official(s) Contact Person: Shawn Richmond, Comptroller Anticipated Completion Date: 6/30/2024 Corrective Action Planned: The Oklahoma Department of Education agrees with the finding. Please see the corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-009 STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.767 FEDERAL PROGRAM NAME: Children’s Health Insurance Program FEDERAL AWARD NUMBER: 2205OK5021 and 2305OK5021 FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The CHIP Total Federal Expenditures were reported at $90,338,494 but should have been $254,259,621. • The CHIP (Covid) Total Federal Expenditures were reported at $12,526,052 but should have been $12,516,975. • The CHIP transfers to other state agencies were reported at $300,933 but should have been $20,397. Cause: We noted the following: • The CHIP Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the MAP administrative expenditure amount was carried forward from the supporting worksheet instead of the CHIP total expenditures. Additionally, we noted three errors in the CHIP supporting documentation. • The CHIP (Covid) Total Federal Expenditures were recorded incorrectly due to an incorrect supporting figure on the CMS 21 Reconciliation worksheet. • The CHIP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because the “2022 CMS 21 HSI Breakout worksheet” was erroneously carried forward form the prior year instead of using the 2023 worksheet. Effect: The errors on the GAAP Package Z resulted in the following: • CHIP Total Federal Expenditures were understated by $163,921,127. • CHIP (Covid) Total Federal Expenditures were overstated by $9,078. • CHIP transfers to other state agencies were overstated by $280,536. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/2024 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-009 STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.767 FEDERAL PROGRAM NAME: Children’s Health Insurance Program FEDERAL AWARD NUMBER: 2205OK5021 and 2305OK5021 FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The CHIP Total Federal Expenditures were reported at $90,338,494 but should have been $254,259,621. • The CHIP (Covid) Total Federal Expenditures were reported at $12,526,052 but should have been $12,516,975. • The CHIP transfers to other state agencies were reported at $300,933 but should have been $20,397. Cause: We noted the following: • The CHIP Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the MAP administrative expenditure amount was carried forward from the supporting worksheet instead of the CHIP total expenditures. Additionally, we noted three errors in the CHIP supporting documentation. • The CHIP (Covid) Total Federal Expenditures were recorded incorrectly due to an incorrect supporting figure on the CMS 21 Reconciliation worksheet. • The CHIP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because the “2022 CMS 21 HSI Breakout worksheet” was erroneously carried forward form the prior year instead of using the 2023 worksheet. Effect: The errors on the GAAP Package Z resulted in the following: • CHIP Total Federal Expenditures were understated by $163,921,127. • CHIP (Covid) Total Federal Expenditures were overstated by $9,078. • CHIP transfers to other state agencies were overstated by $280,536. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/2024 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-009 STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.767 FEDERAL PROGRAM NAME: Children’s Health Insurance Program FEDERAL AWARD NUMBER: 2205OK5021 and 2305OK5021 FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The CHIP Total Federal Expenditures were reported at $90,338,494 but should have been $254,259,621. • The CHIP (Covid) Total Federal Expenditures were reported at $12,526,052 but should have been $12,516,975. • The CHIP transfers to other state agencies were reported at $300,933 but should have been $20,397. Cause: We noted the following: • The CHIP Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the MAP administrative expenditure amount was carried forward from the supporting worksheet instead of the CHIP total expenditures. Additionally, we noted three errors in the CHIP supporting documentation. • The CHIP (Covid) Total Federal Expenditures were recorded incorrectly due to an incorrect supporting figure on the CMS 21 Reconciliation worksheet. • The CHIP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because the “2022 CMS 21 HSI Breakout worksheet” was erroneously carried forward form the prior year instead of using the 2023 worksheet. Effect: The errors on the GAAP Package Z resulted in the following: • CHIP Total Federal Expenditures were understated by $163,921,127. • CHIP (Covid) Total Federal Expenditures were overstated by $9,078. • CHIP transfers to other state agencies were overstated by $280,536. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/2024 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-008 (Partial Repeat 2022-020) STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.778 FEDERAL PROGRAM NAME: Medicaid Cluster FEDERAL AWARD NUMBER: 2205OK5MAP and 2305OK5MAP FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The Medicaid Total Federal Expenditures were recorded at $6,834,862,243 but should have been $6,924,986,911. • The MAP transfers to other state agencies were recorded at $54,891,475 but should have been $55,042,431. • We performed procedures to reconcile the total Federal draws made during SFY 2023 according to the Payment Management System (PMS) against the total of Federal Grants Revenue reported on CTB per Statewide Accounting System. We noted a variance of $8,452,464. This amount represents a reimbursement from the Department of Mental Health to OHCA for disallowed federal expenditures. Cause: We noted the following: • Medicaid Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the Medicaid Total Federal Expenditures amount failed to include the administrative portion of the Medicaid Total Federal Expenditures as well as interest received. • MAP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because a transfer to the Oklahoma Department of Education was not included in the total for MAP transfers. • OHCA misinterpreted the intended use of these reimbursement funds and improperly classified them as federal funds. Effect: Medicaid Total Federal Expenditures were understated by $90,124,668 and the ending Federal Cash Balance was overstated by $90,275,624. The classification error resulted in an $8,452,464 overstatement of Federal Revenue in the Statewide Accounting System. In addition, the overstatement carried through to GAAP Package Z for ALN # 93.778 Medical Assistance Program Revenue and Federal Expenditures. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. We also recommend the Authority ensure that federal funds are properly classified in order to report total federal funds correctly in all systems. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/24 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-008 (Partial Repeat 2022-020) STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.778 FEDERAL PROGRAM NAME: Medicaid Cluster FEDERAL AWARD NUMBER: 2205OK5MAP and 2305OK5MAP FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The Medicaid Total Federal Expenditures were recorded at $6,834,862,243 but should have been $6,924,986,911. • The MAP transfers to other state agencies were recorded at $54,891,475 but should have been $55,042,431. • We performed procedures to reconcile the total Federal draws made during SFY 2023 according to the Payment Management System (PMS) against the total of Federal Grants Revenue reported on CTB per Statewide Accounting System. We noted a variance of $8,452,464. This amount represents a reimbursement from the Department of Mental Health to OHCA for disallowed federal expenditures. Cause: We noted the following: • Medicaid Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the Medicaid Total Federal Expenditures amount failed to include the administrative portion of the Medicaid Total Federal Expenditures as well as interest received. • MAP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because a transfer to the Oklahoma Department of Education was not included in the total for MAP transfers. • OHCA misinterpreted the intended use of these reimbursement funds and improperly classified them as federal funds. Effect: Medicaid Total Federal Expenditures were understated by $90,124,668 and the ending Federal Cash Balance was overstated by $90,275,624. The classification error resulted in an $8,452,464 overstatement of Federal Revenue in the Statewide Accounting System. In addition, the overstatement carried through to GAAP Package Z for ALN # 93.778 Medical Assistance Program Revenue and Federal Expenditures. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. We also recommend the Authority ensure that federal funds are properly classified in order to report total federal funds correctly in all systems. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/24 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-008 (Partial Repeat 2022-020) STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.778 FEDERAL PROGRAM NAME: Medicaid Cluster FEDERAL AWARD NUMBER: 2205OK5MAP and 2305OK5MAP FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The Medicaid Total Federal Expenditures were recorded at $6,834,862,243 but should have been $6,924,986,911. • The MAP transfers to other state agencies were recorded at $54,891,475 but should have been $55,042,431. • We performed procedures to reconcile the total Federal draws made during SFY 2023 according to the Payment Management System (PMS) against the total of Federal Grants Revenue reported on CTB per Statewide Accounting System. We noted a variance of $8,452,464. This amount represents a reimbursement from the Department of Mental Health to OHCA for disallowed federal expenditures. Cause: We noted the following: • Medicaid Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the Medicaid Total Federal Expenditures amount failed to include the administrative portion of the Medicaid Total Federal Expenditures as well as interest received. • MAP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because a transfer to the Oklahoma Department of Education was not included in the total for MAP transfers. • OHCA misinterpreted the intended use of these reimbursement funds and improperly classified them as federal funds. Effect: Medicaid Total Federal Expenditures were understated by $90,124,668 and the ending Federal Cash Balance was overstated by $90,275,624. The classification error resulted in an $8,452,464 overstatement of Federal Revenue in the Statewide Accounting System. In addition, the overstatement carried through to GAAP Package Z for ALN # 93.778 Medical Assistance Program Revenue and Federal Expenditures. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. We also recommend the Authority ensure that federal funds are properly classified in order to report total federal funds correctly in all systems. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/24 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-008 (Partial Repeat 2022-020) STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.778 FEDERAL PROGRAM NAME: Medicaid Cluster FEDERAL AWARD NUMBER: 2205OK5MAP and 2305OK5MAP FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The Medicaid Total Federal Expenditures were recorded at $6,834,862,243 but should have been $6,924,986,911. • The MAP transfers to other state agencies were recorded at $54,891,475 but should have been $55,042,431. • We performed procedures to reconcile the total Federal draws made during SFY 2023 according to the Payment Management System (PMS) against the total of Federal Grants Revenue reported on CTB per Statewide Accounting System. We noted a variance of $8,452,464. This amount represents a reimbursement from the Department of Mental Health to OHCA for disallowed federal expenditures. Cause: We noted the following: • Medicaid Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the Medicaid Total Federal Expenditures amount failed to include the administrative portion of the Medicaid Total Federal Expenditures as well as interest received. • MAP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because a transfer to the Oklahoma Department of Education was not included in the total for MAP transfers. • OHCA misinterpreted the intended use of these reimbursement funds and improperly classified them as federal funds. Effect: Medicaid Total Federal Expenditures were understated by $90,124,668 and the ending Federal Cash Balance was overstated by $90,275,624. The classification error resulted in an $8,452,464 overstatement of Federal Revenue in the Statewide Accounting System. In addition, the overstatement carried through to GAAP Package Z for ALN # 93.778 Medical Assistance Program Revenue and Federal Expenditures. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. We also recommend the Authority ensure that federal funds are properly classified in order to report total federal funds correctly in all systems. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/24 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
FINDING NO: 2023-008 (Partial Repeat 2022-020) STATE AGENCY: Oklahoma Health Care Authority (OHCA) FEDERAL AGENCY: United States Department of Health and Human Services CFDA NO: 93.778 FEDERAL PROGRAM NAME: Medicaid Cluster FEDERAL AWARD NUMBER: 2205OK5MAP and 2305OK5MAP FEDERAL AWARD YEAR: 2022 and 2023 CONTROL CATEGORY: Reporting QUESTIONED COSTS: $0 Criteria: 2 CFR §200.510(b) states, “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…” A basic objective of Generally Accepted Accounting Principles is to provide accurate and reliable information. A component objective of an effective internal control system is to ensure accurate and reliable information through a proper review and approval process. Condition and Context: Based upon testwork performed on GAAP Package Z – Schedule of Expenditures of Federal Awards, we noted the following: • The Medicaid Total Federal Expenditures were recorded at $6,834,862,243 but should have been $6,924,986,911. • The MAP transfers to other state agencies were recorded at $54,891,475 but should have been $55,042,431. • We performed procedures to reconcile the total Federal draws made during SFY 2023 according to the Payment Management System (PMS) against the total of Federal Grants Revenue reported on CTB per Statewide Accounting System. We noted a variance of $8,452,464. This amount represents a reimbursement from the Department of Mental Health to OHCA for disallowed federal expenditures. Cause: We noted the following: • Medicaid Total Federal Expenditures were incorrectly transferred from the “CAFR Package Z Federal Expenditures” worksheet to the GAAP Package Z. The variance occurred because the Medicaid Total Federal Expenditures amount failed to include the administrative portion of the Medicaid Total Federal Expenditures as well as interest received. • MAP transfers to other state agencies were not calculated correctly on the “Schedule of Expenditures of Federal Awards – Transferred” worksheet. The variance occurred because a transfer to the Oklahoma Department of Education was not included in the total for MAP transfers. • OHCA misinterpreted the intended use of these reimbursement funds and improperly classified them as federal funds. Effect: Medicaid Total Federal Expenditures were understated by $90,124,668 and the ending Federal Cash Balance was overstated by $90,275,624. The classification error resulted in an $8,452,464 overstatement of Federal Revenue in the Statewide Accounting System. In addition, the overstatement carried through to GAAP Package Z for ALN # 93.778 Medical Assistance Program Revenue and Federal Expenditures. Recommendation: We recommend OHCA continue to work to strengthen their review and reconciliation controls related to the accuracy of data reported for GAAP Pkg. Z – Schedule of Expenditures of Federal Awards. We also recommend the Authority ensure that federal funds are properly classified in order to report total federal funds correctly in all systems. Views of Responsible Official(s) Contact Person: Calvin Cole, Financial Manager III Anticipated Completion Date: 10/31/24 Corrective Action Planned: The Oklahoma Health Care Authority agrees with the finding. See corrective action plan located in the corrective action plan section of this report.
Material Weakness Internal Controls Over Finacial Reporting Deficiencies in the Design of Controls Conditions: During our audit, we noted the organization does not have the following written Standard Operating Procedures (SOP), inadequate design of controls over the preparation of the financial statements, inadequate design of controls over significant accounts and processes, inadequate documentation of the components of internal controls. We have also found inadequate segregation of duties. The client has personnel and management under their employ who lack the qualifications and training to fulfill their assigned functions. There is also inadequate design of monitoring controls used to assess the design and operating effectiveness of the entity's internal control environment. Failures in the Operation of Internal Control Conditions: Failure of the information and communication component of internal control to provide complete and accurate output because of deficiencies in timeliness, completeness, and accuracy, failure to perform reconciliations of significant accounts. Poor Documentation Conditions: Lack of clear policies and procedures, making it difficult to monitor compliance and identify potential problems. Risk Assessment Failures Conditions: Not properly identifying and mitigating key risks within the organization. Lack of Management Review Conditions: Not actively monitoring and reviewing internal controls for effectiveness. Human Error Conditions: Mistakes made by employees due to poor training or lack of attention to detail. Criteria: 2 CFR Section 200.510 (a) - The auditee shall prepare financial statements that reflect its financial position, results of operation or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Management is responsible for implementing a system of internal control over reconciling, verifying, and evaluating the nature of awards in accordance with applicable accounting standards. Management must assign accountable departmental employees and procedures must be in place for evaluating and documenting the nature of the various accounting steps of rollforwards and reconciliations in accordance with accounting standards and to ensure the accounts are being represented accurately. Effects of Conditions: Without SOPs there is a higher error rate, increased risk of compliance issues, operations stop or a lack of segregation of duties occur when key personnel are unavailable. Without internal controls over the preparation of the financial statements there is no assurance that management has accurate, timely and complete information, including accounting records. The organization faces an increased risk of fraud, errors in accounting, operational inefficiencies, compliance issues, damage to reputation, and difficulty in detecting and investigating fraudulent activity because of a lack of segregation of duties. The lack of monitoring can cause inaccurate financial reporting, increased risk of fraud, poor decision-making due to unreliable data, potential reputational damage, and missed opportunities to identify and correct financial problems early on, ultimately impacting the company's financial stability and overall performance. Cause of Conditions: The lack of SOPs (financial statement close, procure to pay, order tocash) created an environment that is not conducive for monitoring, reconciliation, and communication and can have a material impact on the entity’s financials. Policies and proceduresare not in place to ensure the effectiveness of financial management and oversight. The financial statement close process is not performed in a time manner to allow for reasonable financial statements to be prepared and reviewed by management and those charged with governance. Also, the entity lacks qualified staff in critical roles to ensure that the financial processes are initiated andmonitored and reported in a timely manner. Auditor’s Recommendation: We recommend that internal controls, along with a control matrix and SOPs, are documented and appropriately implemented and distributed to staff and management along with implementing an ongoing process of regularly reviewing and assessing the financial data. Also, we recommend hiring additional qualified staff and providing the training needed to the current staff and new hires.
Material Weakness Internal Controls Over Finacial Reporting Deficiencies in the Design of Controls Conditions: During our audit, we noted the organization does not have the following written Standard Operating Procedures (SOP), inadequate design of controls over the preparation of the financial statements, inadequate design of controls over significant accounts and processes, inadequate documentation of the components of internal controls. We have also found inadequate segregation of duties. The client has personnel and management under their employ who lack the qualifications and training to fulfill their assigned functions. There is also inadequate design of monitoring controls used to assess the design and operating effectiveness of the entity's internal control environment. Failures in the Operation of Internal Control Conditions: Failure of the information and communication component of internal control to provide complete and accurate output because of deficiencies in timeliness, completeness, and accuracy, failure to perform reconciliations of significant accounts. Poor Documentation Conditions: Lack of clear policies and procedures, making it difficult to monitor compliance and identify potential problems. Risk Assessment Failures Conditions: Not properly identifying and mitigating key risks within the organization. Lack of Management Review Conditions: Not actively monitoring and reviewing internal controls for effectiveness. Human Error Conditions: Mistakes made by employees due to poor training or lack of attention to detail. Criteria: 2 CFR Section 200.510 (a) - The auditee shall prepare financial statements that reflect its financial position, results of operation or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Management is responsible for implementing a system of internal control over reconciling, verifying, and evaluating the nature of awards in accordance with applicable accounting standards. Management must assign accountable departmental employees and procedures must be in place for evaluating and documenting the nature of the various accounting steps of rollforwards and reconciliations in accordance with accounting standards and to ensure the accounts are being represented accurately. Effects of Conditions: Without SOPs there is a higher error rate, increased risk of compliance issues, operations stop or a lack of segregation of duties occur when key personnel are unavailable. Without internal controls over the preparation of the financial statements there is no assurance that management has accurate, timely and complete information, including accounting records. The organization faces an increased risk of fraud, errors in accounting, operational inefficiencies, compliance issues, damage to reputation, and difficulty in detecting and investigating fraudulent activity because of a lack of segregation of duties. The lack of monitoring can cause inaccurate financial reporting, increased risk of fraud, poor decision-making due to unreliable data, potential reputational damage, and missed opportunities to identify and correct financial problems early on, ultimately impacting the company's financial stability and overall performance. Cause of Conditions: The lack of SOPs (financial statement close, procure to pay, order tocash) created an environment that is not conducive for monitoring, reconciliation, and communication and can have a material impact on the entity’s financials. Policies and proceduresare not in place to ensure the effectiveness of financial management and oversight. The financial statement close process is not performed in a time manner to allow for reasonable financial statements to be prepared and reviewed by management and those charged with governance. Also, the entity lacks qualified staff in critical roles to ensure that the financial processes are initiated andmonitored and reported in a timely manner. Auditor’s Recommendation: We recommend that internal controls, along with a control matrix and SOPs, are documented and appropriately implemented and distributed to staff and management along with implementing an ongoing process of regularly reviewing and assessing the financial data. Also, we recommend hiring additional qualified staff and providing the training needed to the current staff and new hires.
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 66.458, Environmental Protection Agency. Capitalization Grants for Clean Water State Revolving Funds. Federal Award Identification Number and Year: 5749-01, Loan Period 06/18/2022-11/15/2024 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy Finance Division - Water Infrastructure Financing Section Type: Material weakness in internal controls and material noncompliance with laws and regulations Repeat Finding: No Criteria: Per 2 CFR 200.510 (b), 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 with section 200.502. Condition: The Township did not identify that they were subject to an audit under the Uniform Guidance (U.G.) and a schedule of expenditures of federal awards (SEFA) was not prepared by management. Identification of How Likely Questioned Costs Were Computed: N/A Known Questioned Costs: None Context: In fiscal year 2023, the Township had $1,072,983 in expenditures under three federal awards to report on the SEFA. The Capitalization Grants of Clean Water Revolving Funds was determined to have $980,228 in federal expenditures subject to audit under the U.G. Cause/Effect: The Township's controls were not adequate to ensure that they identify the requirement to have an audit under the Uniform Guidance and the preparation of an accurate and complete SEFA. As a result, management may fail to identify that an audit under the Uniform Guidance is required and that all federal dollars are included. Recommendation: We recommend the Township review federal, state, and local grants to determine if they are federally funded and, if federally funded, utilize the account number outlined in the State of Michigan chart of accounts to track federal funding. View of responsible officials and planned corrective action plan: See attached corrective action plan.
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 66.458, Environmental Protection Agency. Capitalization Grants for Clean Water State Revolving Funds. Federal Award Identification Number and Year: 5749-01, Loan Period 06/18/2022-11/15/2024 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy Finance Division - Water Infrastructure Financing Section Type: Material weakness in internal controls and material noncompliance with laws and regulations Repeat Finding: No Criteria: Per 2 CFR 200.510 (b), 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 with section 200.502. Condition: The Township did not identify that they were subject to an audit under the Uniform Guidance (U.G.) and a schedule of expenditures of federal awards (SEFA) was not prepared by management. Identification of How Likely Questioned Costs Were Computed: N/A Known Questioned Costs: None Context: In fiscal year 2023, the Township had $1,072,983 in expenditures under three federal awards to report on the SEFA. The Capitalization Grants of Clean Water Revolving Funds was determined to have $980,228 in federal expenditures subject to audit under the U.G. Cause/Effect: The Township's controls were not adequate to ensure that they identify the requirement to have an audit under the Uniform Guidance and the preparation of an accurate and complete SEFA. As a result, management may fail to identify that an audit under the Uniform Guidance is required and that all federal dollars are included. Recommendation: We recommend the Township review federal, state, and local grants to determine if they are federally funded and, if federally funded, utilize the account number outlined in the State of Michigan chart of accounts to track federal funding. View of responsible officials and planned corrective action plan: See attached corrective action plan.
Finding 2022-001 Preparation of Schedule of Expenditures of Federal Awards Federal Agency and Pass-through Entity: U.S. Environmental Protection Agency – Georgia Environmental Finance Authority Program Title/Cluster: Clean Water State Revolving Fund Cluster (CWSRF) Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity’s fiscal year. Uniform Guidance 2 CFR §200.510(b) states “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.” Condition: For the year ended December 31, 2022, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards that met minimum requirements as established by Uniform Guidance 2 CFR §200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR §200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Hartwell should refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR §200.510(b).
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Justice, U.S. Department of Transportation, Election Assistance Commission, U.S. Department of Health and Human Services. Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services. Federal ALN: 16.000, 16.738, 20.600, 20.607, 93.069, 93.268, 93.323, 93.354, 93.575, 93.767, 93.778, 93.919, 93.991, 93.994 Program Title: Domestic Cannabis Eradication/Suppression Program, Edward Bryne Memorial Justice Assistance Grant Program, State and Community Highway Safety, Alcohol Open Container Requirements, HAVA Election Security Grant, Public Health Emergency Preparedness, Immunization Cooperative Agreements, Epidemiology and Laboratory Capacity for Infectious Diseases, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, Child Support Enforcement, Child Care and Development Block Grant, Children’s Health Insurance Program, Medical Assistance Program, Breast and Cervical Cancer Early Detection Program, Preventive Health and Health Services Block Grant, Maternal and Child Health Services Block Grant Pass-through Entity Identifying Number: 6NU90TP922111-01, 65NU50CK000546-01, 6NH23IP922606-01, 6NU90TP922019 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the year ended December 31, 2020 as item 2020-002. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.
Federal Grantor: U.S. Department of Agriculture, U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Transportation, U.S. Department of the Treasury, Election Assistance Commission, U.S. Department of Health and Human Services, and U.S. Department of Homeland Security Pass-Through Grantor: Missouri Department of Health and Senior Services, Missouri Department of Transportation, Missouri Department of Public Safety, and Missouri State Treasurer Federal ALN Number: 10.557, 10.923, 14.228, 16.607, 16.738, 20.205, 21.019, 21.027, 93.069, 93.767, 93.994 and 97.036 Program Title: Special Supplemental Nutrition Program for Women, Infants, and Children; Emergency Watershed Protection Program; Community Development Block Grants; Patrick Leahy Bulletproof Vest Partnership; Edward Byrne Memorial Justice Assistance Grant Program; Highway Planning and Construction; Coronavirus Relief Fund; Coronavirus State and Local Fiscal Recovery Funds; Public Health Emergency Preparedness; Local Public Health Services; Maternal and Child Health Services Block Grant; Disaster Grants – Public Assistance (Presidentially Declared Disasters) Pass-through Entity Identifying Number: ERS04520077, ERS04522105, N2919WEP0010014, BRO-B044(35), BRO-B044(36-38), DH1800040521, DH210048512, DH220050467, AOC19380006, DH220051086, DH190011039, DR-4435, DR-4451, DR-4612 Award Year: 2021 and 2022 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2020 and 2019 as item 2020-001. Condition: The schedules of expenditures of federal awards (SEFA) reported by the County in the 2021 and 2022 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2022 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2021 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2022 and 2021. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year. County’s Response: Beginning in 2023, the Holt County Clerk has implemented a process to obtain award letters from grant writers and documenting the funding details. The Holt County Clerk is looking into software which is able to track projects year over year to make reporting more manageable. Auditor’s Evaluation: The response is appropriate to correct the concern.