Finding Text
2024SA-004 Insufficient Understanding of Federal Compliance Requirements Federal Agency/Passthrough Agency: US Department of Health and Human Services Program: SAMHSA Grant Depression Screening in School based Health Centers Federal Award Number: 43382006L Assistance Listing Number: 93.243 Material Weakness Material Noncompliance – Financial Management Criteria: 2 CFR section 200 and the OMB Compliance Supplement states the Grantee is required to gain an understanding of the federal compliance requirements for all federal grants received whether that be directly or passed through another agency. Grantees are then expected to design internal controls that will ensure compliance with those requirements. Additionally, management is required to evaluate the potential for fraud to occur in the administration of the grants to implement policies and procedures that will reduce the risk of fraud from occurring without detection to a low-level of risk. Condition: The Health Department Administrator lacks a clear understanding of federal compliance requirements and is not adhering to the County’s established grant policies. According to County policy, only the County Board Chairman, County Treasurer, and County Clerk are authorized signatories. Despite this, Amanda Minor, Health Department, Administrator has been independently signing the Health Department grant agreements. Context: From reviews of the County and Health Department’s grant policies, internal control and accounting procedures along with inquiries made, it was indicated that the Amanda is signing the grant agreements and does not have a sufficient understanding of federal compliance requirements and has not developed necessary internal controls to ensure compliance. Effect: 1) Increased risk of noncompliance with federal grant requirements. 2)Potential for unallowable costs and questioned costs that could require repayment. 3) Weakening of internal control structure, which may rise to a significant deficiency or material weakness in the audit. 4) Diminished accountability and oversight over federally funded programs. Questioned Costs: None. Cause: There is a systematic problem throughout the County regarding a lack of understanding of federal compliance requirements and following grant policies for each grant award. The County should enforce its grant policies by requiring only authorized officials to execute grant agreements and department heads should be trained on complying with grant agreements. Repeated Finding: No Recommendation: Review the federal guidelines and compliance requirements related to management of federal awards. Establish and document a plan to ensure compliance with each requirement. Management’s Response: The County will work to improve evaluation of compliance requirements and documentation of procedures implemented to ensure compliance.