Finding Text
Finding 2021-005 – Lack of County-Wide Controls Over Major Federal Programs – Disaster Grants – Public Assistance (Presidentially Declared Disasters)
PASS-THROUGH GRANTOR: Oklahoma Department of Emergency Management
FEDERAL AGENCY: U.S. Department of Homeland Security
ASSISTANCE LISTING NO: 97.036
FEDERAL PROGRAM NAME: Disaster Grants – Public Assistance (Presidentially Declared Disasters)
FEDERAL AWARD NUMBER: DR-4438
FEDERAL AWARD YEAR: 2020 and 2021
CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Cost Principals; Period of Performance; Reporting; Special Tests & Provisions
QUESTIONED COSTS: $-0-
Condition: County-wide controls regarding Control Environment, Risk Assessment, Information and Communication, and Monitoring have not been designed.
Cause of Condition: Policies and procedures have not been designed and implemented to ensure the County complies with grant requirements.
Effect of Condition: This condition could result in noncompliance to grant requirements and could lead to a loss of federal funds to the County.
Recommendation: OSAI recommends that the County design and implement a system of internal controls to ensure compliance with grant requirements.
Management Response:
Chairman of the Board of County Commissioners: This is something we will address in our County Officers’ meetings.
County Clerk: All persons involved in federal grants will set time aside to develop policies and procedures regarding the county-wide controls over federal grants.
County Treasurer: I will make sure I communicate clearly with the County Clerk and others involved in federal grants and encourage other offices to do the same.
County Commissioner District 2: I did not take office until January 2021; therefore, I was not in office during FEMA disaster #4438 declared in 2019. In any future FEMA declared emergencies, I will exercise due diligence and oversee any and all documents relative to the disaster.
County Commissioner District 3: I will research information regarding the federal grants the County receives and discuss them in the County Officers’ meetings.
Criteria: The GAO Standards – Section 1 – Fundamental Concepts of Internal Control – OV1.01 states in part:
Definition of Internal Control
Internal control is a process effected by an entity’s oversight body, management, and other personnel that provides reasonable assurance that the objectives of an entity will be achieved.
Additionally, GAO Standards – Section 2 – Establishing an Effective Internal Control System – OV2.04 states in part:
Components, Principles, and Attributes
Control Environment – the foundation for an internal control system. It provides the discipline and structure to help an entity achieve its objectives.
Risk Assessment – Assesses the risks facing the entity as it seeks to achieve its objectives. This assessment provides the basis for developing appropriate risk responses.
Information and Communication – The quality information management and personnel communicate and use to support the internal control system.
Monitoring – Activities management establishes and operates to assess the quality of performance over time and promptly resolve the findings of audits and other reviews.