FAC Explorer

Finding 1140419 (2024-003)

Significant Deficiency Repeat Finding
Requirement
H
Questioned Costs
-
Year
2024
Accepted
2025-06-05
Audit: 358146
Organization: County of Kern (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County improperly recorded costs incurred before the grant's performance period, leading to significant compliance deficiencies.
  • Impacted Requirements: Violations of 2 CFR Part 200 regarding the period of performance and internal control standards.
  • Recommended Follow-Up: Conduct training for departments on proper expenditure compilation using the accrual basis of accounting.

Finding Text

2024-003: Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 Pass-Through Agency: California Department of Health Care Services Award ID and Period: 1B08TI087026-01,1B08TI083929-01 and July 01, 2023, through June 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The County should have internal controls designed to ensure that expenditures are recorded within the period of performance. Additionally, 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award section 200.303 requires that entities establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing of Allowable Costs, we noted that the County incorrectly included a portion of nonpayroll costs which were predominantly incurred before the period of performance. Questioned costs: $2,414 known questioned cost, plus $110,850 of likely questioned costs based on an extrapolation of the known error identified within the population tested. Context: This condition was identified on 5 of 10 samples testing during the first month of the period of performance. Cause: The compilation of expenditures reported was based on the system date for when expenditures were recorded in the system instead of when the expenditures were incurred. Effect: Expenditures recorded to the grant may have been recorded outside of the grant’s period of performance. Repeat finding: Yes, the same issue was noted in the prior year under finding No. 2023-007. Recommendation: We recommend the County conduct training with its various departments to instruct them on how to compile expenditures based on the accrual basis of accounting (when the expenditures were incurred). Views of responsible officials: The County concurs with the finding.

Categories

Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 563974 2024-002
    Significant Deficiency Repeat
  • 563975 2024-002
    Significant Deficiency Repeat
  • 563976 2024-003
    Significant Deficiency Repeat
  • 563977 2024-003
    Significant Deficiency Repeat
  • 563978 2024-004
    Significant Deficiency Repeat
  • 563979 2024-004
    Significant Deficiency Repeat
  • 1140416 2024-002
    Significant Deficiency Repeat
  • 1140417 2024-002
    Significant Deficiency Repeat
  • 1140418 2024-003
    Significant Deficiency Repeat
  • 1140420 2024-004
    Significant Deficiency Repeat
  • 1140421 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $150.79M
21.027 Coronavirus State and Local Fiscal Recovery Funds $36.09M
93.778 Medical Assistance Program $29.72M
93.563 Child Support Services $18.68M
20.205 Highway Planning and Construction $11.70M
17.258 Wioa Adult Program $6.64M
17.259 Wioa Youth Activities $6.43M
93.667 Social Services Block Grant $3.57M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $3.06M
93.090 Guardianship Assistance $2.89M
17.264 National Farmworker Jobs Program $2.79M
10.025 Plant and Animal Disease, Pest Control, and Animal Care $2.14M
93.268 Immunization Cooperative Agreements $2.01M
16.575 Crime Victim Assistance $1.70M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.64M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $1.54M
14.239 Home Investment Partnerships Program $1.37M
93.556 Marylee Allen Promoting Safe and Stable Families Program $1.09M
97.067 Homeland Security Grant Program $1.02M
93.659 Adoption Assistance $925,309
14.241 Housing Opportunities for Persons with Aids $908,575
16.606 State Criminal Alien Assistance Program $894,297
93.658 Foster Care Title IV-E $864,815
93.645 Stephanie Tubbs Jones Child Welfare Services Program $820,352
93.917 Hiv Care Formula Grants $771,182
93.994 Maternal and Child Health Services Block Grant to the States $689,860
93.069 Public Health Emergency Preparedness $656,345
20.616 National Priority Safety Programs $635,674
93.324 State Health Insurance Assistance Program $624,735
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $601,665
93.052 National Family Caregiver Support, Title Iii, Part E $539,175
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $526,215
10.555 National School Lunch Program $490,914
97.039 Hazard Mitigation Grant $486,607
93.590 Community-Based Child Abuse Prevention Grants $460,495
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $440,326
14.231 Emergency Solutions Grant Program $438,159
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $424,341
93.959 Block Grants for Prevention and Treatment of Substance Abuse $408,864
93.958 Block Grants for Community Mental Health Services $399,833
16.922 Equitable Sharing Program $398,278
93.767 Children's Health Insurance Program $374,171
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $346,856
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $324,573
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $318,017
93.889 National Bioterrorism Hospital Preparedness Program $300,874
97.042 Emergency Management Performance Grants $273,584
16.741 Dna Backlog Reduction Program $228,058
93.150 Projects for Assistance in Transition From Homelessness (path) $220,614
93.940 Hiv Prevention Activities Health Department Based $218,924
93.053 Nutrition Services Incentive Program $211,649
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $195,792
17.278 Wioa Dislocated Worker Formula Grants $190,512
95.001 High Intensity Drug Trafficking Areas Program $179,506
17.805 Homeless Veterans’ Reintegration Program $178,167
14.218 Community Development Block Grants/entitlement Grants $173,739
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $145,259
16.593 Residential Substance Abuse Treatment for State Prisoners $141,357
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $119,171
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $118,731
17.285 Registered Apprenticeship $117,607
16.738 Edward Byrne Memorial Justice Assistance Grant Program $109,425
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $106,502
10.553 School Breakfast Program $102,506
97.046 Fire Management Assistance Grant $86,030
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $83,996
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $80,867
14.267 Continuum of Care Program $61,724
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $61,253
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $47,737
93.071 Medicare Enrollment Assistance Program $40,496
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $33,563
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $30,432
10.664 Cooperative Forestry Assistance $20,824
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $10,234
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $5,032