Finding 1162655 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-11-18
Audit: 372315
Organization: MORGAN COUNTY, MISSOURI (MO)

AI Summary

  • Core Issue: The County's Schedule of Expenditures of Federal Awards (SEFA) for 2023 and 2024 contained errors, failing to accurately reflect actual federal expenditures.
  • Impacted Requirements: Compliance with 2 CFR 200.510(b) is at risk due to discrepancies in reported amounts and underlying accounting records.
  • Recommended Follow-Up: Implement internal controls, including reconciliations and independent reviews, to ensure accurate SEFA preparation moving forward.

Finding Text

2024-003: Internal Control Over Schedule of Expenditures of Federal Awards Federal Grantor: U.S. Department of Justice (DOJ), U.S. Department of Transportation (DOT), U.S. Department of the Treasury (Treasury), Executive Office of the President (EOP) Pass-Through Grantor: Missouri Department of Transportation, University of Central Missouri, Missouri Secretary of State, Missouri State Highway Patrol Federal Assistance Listing Number: 16.575, 20.205, 20.607, 20.616, 21.027, 95.001 Program Title: Crime Victim Assistance, Highway Planning and Construction, Alcohol Open Container Requirements, National Priority Safety Programs, Coronavirus State and Local Fiscal Recovery Funds, High Intensity Drug Trafficking Area Program Pass-through Entity Identifying Number: BRO-R071(11), BRO-R071(12), 24-154-AL-049, 25-ENF-03-078, 24-M2HVE-05-032, SLFRP4542-CJMI030, G23MW0001A-QQ Award Year: 2023 and 2024 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. Condition: The SEFA reported by the County in the 2024 and 2025 annual budget documents contained errors in amounts of federal expenditures reported. This finding was noted in the prior audit as item 2020-006. Discrepancies in amounts reported on the 2023 SEFA and amount supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2024 SEFA and amounts supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2023 and 2024. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.

Corrective Action Plan

We are taking steps to address the ongoing issue by coordinating with department heads and the Treasurer to ensure all grant paperwork is properly received and documented.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1162649 2024-003
    Material Weakness Repeat
  • 1162650 2024-003
    Material Weakness Repeat
  • 1162651 2024-003
    Material Weakness Repeat
  • 1162652 2024-003
    Material Weakness Repeat
  • 1162653 2024-003
    Material Weakness Repeat
  • 1162654 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 CRIME VICTIM ASSISTANCE $71,461
20.205 HIGHWAY PLANNING AND CONSTRUCTION $71,069
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $70,750
90.401 HELP AMERICA VOTE ACT REQUIREMENTS PAYMENTS $11,750
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $11,546
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $8,600