Finding 1077515 (2023-003)

Finding 2023-003: Forest Service Schools and Roads Cluster, Federal Assistance Listing No. 10.665 U.S. Department of Agriculture Passed-through Colorado Department of Treasury Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Grant No.: Title I and III Type of finding: Internal Control (significant deficiency) and Compliance (noncompliance) Criteria: The authorized uses portion of the Title III – County Funds section (16 USC 7141-7144) states that Title III funds shall only be used to 1) carry out activities under the Firewise Communities program, 2) reimburse the County for search and rescue and other emergency services, or 3) develop community wildfire protection plans. Condition: Title III funds were incorrectly included with the Title I funds computation for distribution to the local school districts and the Road and Bridge Fund. Cause: The County does not have a complete system of internal controls to ensure that federal funds are used for allowable purposes. Questioned Costs: None Effect: Title III funds were not separately identified and tracked to ensure compliance with activities allowed or unallowed and allowable costs/cost principles requirements. Recommendation: The County should strengthen its internal controls with adopted policies and procedures to ensure compliance with the authorized uses portion of the Title III – County Funds section. Management’s Response: See corrective action plan.