Finding 2024-003 Repeat Finding 2023-004 ALNo.: Program Title: Federal Agency: Award Number/Year: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds U.S. Department of Treasury 1505-027 l / 2021 Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the approval ofreports by a knowledgeable individual. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval/review of reports prior to submission. The annual report selected for testing did not have documentation ofreview and/or approval. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to document their review of the reports before submission. Questioned Costs: None noted. Effect: Costs for activities that are specifically not allowed or are prohibited by the federal statutes, regulations, or the terms and conditions of the federal award could be processed under the grant. Recommendation: The County should review its internal control procedures to ensure there is a process for documentation of proper review and approval over completeness and accuracy of reports are in place before submissions are completed. Corrective Action Planned: The Finance Department, Angela Runde and Cody Blindert, continued to work on the development of the Grant Manager module of Tyler MUNIS. In 2025 it was reviewed with the Department Heads, Kessa Klaas, Cece Fink and Lori Reid as to their responsibility to review each filing for completeness and accuracy before filing. Patrick Montgomery will review with Kessa Klaas the federal program regulations and reporting requirements. A process will be implemented that all federal reports are reviewed by the Finance Director before being submitted. Anticipated Completion date: 3/1/2026.