Finding 1095949 (2024-001)

Department of the Treasury FFAL #21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year – SLFRP0515 for 2021 Subrecipient Monitoring Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The subrecipient agreement requires the submission of quarterly performance reports by the subrecipient within fifteen days of quarter end. However, no quarterly performance reports were submitted by the subrecipient for the year ended June 30, 2024, as of August 1, 2024. Cause: The County did not have an internal control process in place to ensure the quarterly performance reports were received by the subrecipient timely. Effect: Without the timely submission of the quarterly performance reports by the subrecipient and review of those reports by the County, there is a greater possibility of ineligible expenditures. Questioned Costs: None reported. Context: No sampling was used. There was only one subrecipient during the year ended June 30, 2024 and it was selected for testing. Repeat Finding from Prior Years: No Recommendation: We recommend the County implement a control process which ensures quarterly performance reports are received by the subrecipient timely and that those reports are reviewed and approved by County personnel. Views of Responsible Officials: Dubuque County acknowledges the comment and has implemented a process to receive and review quarterly performance reports from the subrecipient.