Finding 1161328 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-10-23
Audit: 371223
Organization: COUNTY OF NEWTON (TX)

AI Summary

  • Core Issue: The County of Newton, Texas is not reconciling grant expenditures or obtaining management approval before requesting reimbursements, violating OMB's Uniform Guidance 2 CFR 200.512.
  • Impacted Requirements: Lack of reconciliation and approval can lead to incomplete and inaccurate reimbursement requests, risking compliance with federal grant requirements.
  • Recommended Follow-Up: Implement internal controls for reconciliation and approval processes, and provide ongoing training for staff on compliance with grant requirements.

Finding Text

Criteria: OMB's Uniform Guidance 2 CFR 200.512 requires timely reconciliation and approval of grant expenditures prior to requesting reimbursement of grant expenditures from federal agencies. Condition: It appears The County of Newton, Texas does not reconcile grant expenditures and seek management review and approval prior to requesting reimbursement for grant expenditures prior to submitting requests for reimbursement. Cause:, It appears the County of Newton, Texas management and staff relies heavily on outside resources to provide the necessary monitoring of grant activities and expenditures including compliance matters. In addition, it appears the County of Newton, Texas management and staff relies on outside resources to reconcile and prepare grant expenditure reimbursement requests for reimbursement. Effect: The overreliance and the absence of reconciliation of grant expenditures prior to requests for reimbursement coupled with an understanding of required compliance attributes associated with each individual grant may lead to incomplete and inaccurate requests for reimbursement of grant expenditures. Recommendation: The County of Newton, Texas's Commissioner's should adopt, and management should implement internal controls to ensure proper reconciliations be performed and management approval prior to requesting reimbursement for grant expenditures. In addition, the County of Newton, Texas’s Commissioners should provide resources and support for the continued education and training of both management and staff regarding compliance attributes associated with requirements as per the Uniform Guidance 2 CFR 200.

Corrective Action Plan

The County will implement procedures and coordinate with outside grant management sources to ensure all grant documentation is received, approved, and reconciled to the general ledger prior to submitting requests for reimbursement. The Commissioners will ensure adequate training is provided. Anticipated Completion Date: Full implementation should be accomplished by fiscal year 2026. Responsible Parties: Sherry Moore, County Auditor and Commissioners

Categories

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161300 2022-002
    Material Weakness Repeat
  • 1161301 2022-003
    Material Weakness Repeat
  • 1161302 2022-002
    Material Weakness Repeat
  • 1161303 2022-003
    Material Weakness Repeat
  • 1161304 2022-002
    Material Weakness Repeat
  • 1161305 2022-003
    Material Weakness Repeat
  • 1161306 2022-002
    Material Weakness Repeat
  • 1161307 2022-003
    Material Weakness Repeat
  • 1161308 2022-002
    Material Weakness Repeat
  • 1161309 2022-003
    Material Weakness Repeat
  • 1161310 2022-002
    Material Weakness Repeat
  • 1161311 2022-003
    Material Weakness Repeat
  • 1161312 2022-002
    Material Weakness Repeat
  • 1161313 2022-003
    Material Weakness Repeat
  • 1161314 2022-002
    Material Weakness Repeat
  • 1161315 2022-003
    Material Weakness Repeat
  • 1161316 2022-002
    Material Weakness Repeat
  • 1161317 2022-003
    Material Weakness Repeat
  • 1161318 2022-002
    Material Weakness Repeat
  • 1161319 2022-003
    Material Weakness Repeat
  • 1161320 2022-002
    Material Weakness Repeat
  • 1161321 2022-003
    Material Weakness Repeat
  • 1161322 2022-002
    Material Weakness Repeat
  • 1161323 2022-003
    Material Weakness Repeat
  • 1161324 2022-002
    Material Weakness Repeat
  • 1161325 2022-003
    Material Weakness Repeat
  • 1161326 2022-002
    Material Weakness Repeat
  • 1161327 2022-003
    Material Weakness Repeat
  • 1161329 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.78M
90.404 HAVA ELECTION SECURITY GRANTS $120,000
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $104,153
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $21,184
97.039 HAZARD MITIGATION GRANT $15,814
97.067 HOMELAND SECURITY GRANT PROGRAM $14,770
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $14,309
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $4,800
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $3,300