FAC Explorer

Finding 1106000 (2023-004)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2025-03-24
Audit: 347531
Organization: Johnson County, Iowa (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance with procurement requirements for federal awards.
  • Impacted Requirements: The County did not follow its own Procurement Policy, specifically failing to publish bids before making a purchase.
  • Recommended Follow-Up: The County should review and improve the procurement approval process, ensuring effective controls are in place and providing training to all departments.

Finding Text

U.S. Department of Treasury Federal Financial Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria – The Uniform Guidance, Section 200.303 Internal Controls, requires the non-federal entity establish and maintain effective internal controls over federal awards that provide reasonable assurance that awards are being managed in compliance with federal statutes, regulations and the terms and conditions of the federal award. As described in the 2023 compliance supplement, Part 3 includes the requirements of uniform guidance and 2 CFR sections 200.317 through 200.326. We consider factors such as the County’s internal controls and the internal controls over compliance requirements and tests as prescribed in 2 CFR section 200.317 through 200.326. Condition – We selected 4 procurements during our review of overall grant activity for the year ended June 30, 2023. We noted the following in our testing:  1 of the 4 procurements tested was not purchased prior to publishing bids within the local newspaper as required by the County’s Procurement Policy. Cause – Due to insufficient controls over the procurement review process (documentation) the controls are not operating as designed (or not properly implemented to prevent, detect and correct errors timely). Effect – Failure to document the required procurement procedures of the grant may result in noncompliance with the County’s policy. Questioned Costs – None reported. Context/Sampling – A nonstatistical sample of 4 out of 18 expenditures subject to procurement requirements were selected for testing, which accounted for $320,725 of $1,131,449 total expenditures subject to procurement requirements. Repeat Finding from Prior Years – No. Recommendation – We recommend that the County review the procurement approval process to determine why the controls failed and to design and implement controls that will prevent, detect and correct this from occurring in the future. View of Responsible Officials – The County will be more diligent in following their procurement policy. The Finance Department and Grants Team will provide training and guidance to ensure all the other County Departments/Offices are aware of the requirements. Additionally, the upcoming move to a new financial system will lend itself to policy updates and business process updates to ensure this will be less likely to happen.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 529558 2023-004
    Significant Deficiency
  • 529559 2023-004
    Significant Deficiency
  • 529560 2023-004
    Significant Deficiency
  • 529561 2023-003
    Material Weakness Repeat
  • 529562 2023-003
    Material Weakness Repeat
  • 529563 2023-003
    Material Weakness Repeat
  • 529564 2023-003
    Material Weakness Repeat
  • 529565 2023-003
    Material Weakness Repeat
  • 529566 2023-003
    Material Weakness Repeat
  • 529567 2023-003
    Material Weakness Repeat
  • 1106001 2023-004
    Significant Deficiency
  • 1106002 2023-004
    Significant Deficiency
  • 1106003 2023-003
    Material Weakness Repeat
  • 1106004 2023-003
    Material Weakness Repeat
  • 1106005 2023-003
    Material Weakness Repeat
  • 1106006 2023-003
    Material Weakness Repeat
  • 1106007 2023-003
    Material Weakness Repeat
  • 1106008 2023-003
    Material Weakness Repeat
  • 1106009 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.259 Wia Youth Activities $703,806
97.039 Hazard Mitigation Grant $497,846
17.258 Wia Adult Program $401,410
93.994 Maternal and Child Health Services Block Grant to the States $262,762
14.272 National Resilient Disaster Recovery Competition $238,109
17.278 Wia Dislocated Worker Formula Grants $198,209
16.575 Crime Victim Assistance $187,325
20.205 Highway Planning and Construction $172,980
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $171,052
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $122,640
12.112 Payments to States in Lieu of Real Estate Taxes $99,383
93.940 Hiv Prevention Activities_health Department Based $99,156
16.606 State Criminal Alien Assistance Program $77,870
15.226 Payments in Lieu of Taxes $76,761
93.778 Medical Assistance Program $61,837
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $54,260
66.475 Gulf of Mexico Program $47,030
93.268 Immunization Cooperative Agreements $32,111
16.738 Edward Byrne Memorial Justice Assistance Grant Program $31,666
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $26,644
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,600
16.548 Title V_delinquency Prevention Program $18,261
20.531 Technical Assistance and Workforce Development $16,797
93.667 Social Services Block Grant $14,305
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $12,506
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $11,629
93.658 Foster Care_title IV-E $11,457
20.600 State and Community Highway Safety $10,587
93.556 Promoting Safe and Stable Families $10,362
93.069 Public Health Emergency Preparedness $10,304
90.401 Help America Vote Act Requirements Payments $10,250
20.219 Recreational Trails Program $6,803
93.659 Adoption Assistance $6,316
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $5,613
20.509 Formula Grants for Rural Areas and Tribal Transit Program $5,568
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $5,000
93.217 Family Planning_services $4,703
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $4,197
16.710 Public Safety Partnership and Community Policing Grants $2,814
93.472 Title IV-E Prevention and Family Services and Programs (a) $1,608
93.767 Children's Health Insurance Program $935
93.566 Refugee and Entrant Assistance_state Administered Programs $150