Finding 1104960 (2024-007)

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE 2024-007: U.S. Department of the Treasury ARPA Coronavirus State and Local Recovery Funds, ALN 21.027 Subrecipient Monitoring Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.330, .331, and .332 requires that, as a pass-through entity, the County is responsible for identifying and reporting to the subrecipient the award information and applicable requirements to carrying out the award, as well as monitoring the activities of the subrecipient to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. Condition and Cause: Due to inadequate internal controls, the County did not provide complete and accurate subaward information to the subrecipient. Effect/Potential Effect: Subrecipients may not be aware of the grant reporting or compliance requirements for proper inclusion in their financial reports. Questioned Costs: None noted. Context: The County passed $49,019 through to the Golconda Water District and did not perform adequate procedures to ensure subrecipient compliance. This is not, however, deemed to be a questioned cost as no instances of material non-compliance were noted during our testing of the subrecipient’s grant activities. Recommendation: Internal control procedures should be enhanced to ensure compliance with subrecipient monitoring requirements. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding and will enhance control procedures as recommended. Repeat Finding from Prior Year: Yes