Finding 1089972 (2022-003)

Compliance Requirement Special Tests and Provisions Material Weakness Material Noncompliance 2022-003. The County should establish controls to ensure the public comment period requirement is following before using Title III funds. Assistance Listing Number 10.665 Federal Award Schools and Roads – Grants to States Federal Agency U.S. Department of Agriculture - Forest Service Pass-through Mississippi State Treasurer’s Office Questioned Costs None Context There were two transactions noted for Title III expenditures. Repeat Finding No Criteria The 2022 OMB Compliance Supplement and the U.S. Code, Title 16, Section 7142(b) specifies that a participating county can use Title III funds only after a 45-day public comment period, at the beginning of which the participating county shall (1) publish in any publications of local record a proposal that describes the proposed use of the county funds and (2) submit the proposal to any resource advisory committee established under U.S. Code, Title 16, Section 7125 for the participating county. Condition The County did not provide the required public notice prior to using Title III funds nor was the 45-day comment period observed before any Title III funds were expended. Also, the County did not have documentation of the proposal to the resource advisory committee. Cause The County lacked the necessary controls over the public comment period federal requirement. Effect Failure to provide the required public notice and observe the 45-day comment period before any Title III funds were expended could result in funds being used for unallowable purposes. Recommendation The County should implement adequate internal controls to ensure that the County follows the public comment period requirement with using Title III funds. Also, the County should document submission of the proposal to the resource advisory committee.