Finding 1055016 (2022-005)

2022-005 Reporting, Matching and Earmarking Federal Agency: U.S. Department of Homeland Security Federal Program Name: Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Federal Award Identification Number and Year: N/A Award Period: 2022 and 2021 Pass-through Entity: n/a Questioned Costs: None Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria or Specific Requirement: Reporting: Quarterly progress reports are due from recipients on all open large projects 30 days after the end of each calendar quarter. Matching: Costs must be on a shared basis, as specified in the FEMA-State Agreement. In general, the minimum federal share is 75 percent of eligible costs (44 CFR section 206.65). The nonfederal share that is split between the state and each subrecipient may vary. The accountability for meeting the matching requirement resides with the state and is determined at the time of project accounting as part of project closeout. Earmarking: For major disaster or emergency declarations on or after November 13, 2007, the state makes management cost funding available to subrecipients, as prescribed in the state administrative plan, to administer PA projects (interim final rule, 44 CFR sections 206.207 and 206.228 and Part 207, effective November 13,2007, 72 FR 57876 through 57878, October 11, 2007). Condition: During our testing, it was noted the County did not have adequate controls designed to ensure that reporting requirements, which would be used to support and track matching and earmarking, were being met. Context: No reports, which would have been used to support and track matching and earmarking, were completed and submitted. Cause: The County has not designed and implemented internal controls to ensure compliance with programs specific reporting, matching and earmarking, requirements. Effect: The County is in noncompliance with reporting, matching and earmarking, requirements. Recommendation: We recommend the County implement internal controls to ensure that required reporting, which includes matching and earmarking, is completed timely as required. Repeat Finding: No Views of Responsible Officials: There is no disagreement with the audit finding.