Finding Text
SCHEDULE OF FEDERAL AWARD FINDINGS AND
QUESTIONED COSTS
Wahkiakum County
January 1, 2023 through December 31, 2023
2023-001 The County did not have adequate controls for ensuring compliance with federal requirements for allowable activities and costs.
Assistance Listing Number and Title: 21.032, COVID-19- Local Assistance and Tribal Consistency Fund
Federal Grantor Name: U.S. Department of the Treasury
Federal Award/Contract Number: N/A
Pass-through Entity Name: N/A
Pass-through Award/Contract Number: N/A
Known Questioned Cost Amount: $50,000
Prior Year Audit Finding: N/A
Description of Condition
During fiscal year 2023, the County spent $50,000 in federal funding from the Local Assistance and Tribal Consistency Fund (LATCF). This program provided funding to eligible revenue sharing counties and eligible tribal governments across fiscal years 2022 and 2023 for revenue enhancement. Recipients may use the funding for any governmental purpose other than a lobbying activity.
Federal regulations require recipients to establish and maintain internal controls that ensure compliance with program requirements. These controls include understanding program requirements and monitoring the effectiveness of program controls.
The County’s internal controls were inadequate for ensuring it charged only allowable costs to the program. Specifically, the County charged sheriff’s office payroll costs to the LATCF program that it had already charged to another federal program.
We consider this deficiency in internal controls to be a material weakness that led to material noncompliance.
Cause of Condition
The County intended to charge some months of sheriff’s office payroll costs to the LATCF program and other months to another federal program. However, the County’s review did not detect that it charged payroll costs for the same period to both programs.
Effect of Condition and Questioned Costs
The County charged $50,000 of costs to the program that were unallowable because it had already charged them to another federal program. Therefore, we are questioning these costs.
Recommendation
We recommend the County establish and follow internal controls to ensure it charges only allowable costs to federal programs.
County’s Response
A request was made to the payroll department for a report for the Sheriff’s office for the August payroll. I meant the July time issued on August 5th. The report I received was for August time with a September 5th pay date. This was a misunderstanding and not an intentional oversight. In the future, we will ensure that the report dates match the payroll we are requesting.
Auditor’s Remarks
We thank the County for its cooperation and assistance during the audit and acknowledge its commitment to resolve this finding. We will review the corrective action taken during our next audit.
Applicable Laws and Regulations
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 516, Audit findings, establishes reporting requirements for audit findings.
Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements.
The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11.