Finding 1171696 (2022-013)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2026-01-30
Audit: 384725
Organization: Osage County (OK)

AI Summary

  • Core Issue: Eight purchase orders totaling $390,313 lacked adequate documentation, leading to potential noncompliance with federal grant requirements.
  • Impacted Requirements: Failure to meet documentation standards as outlined in 2 CFR § 200.403 could jeopardize federal funding for the County.
  • Recommended Follow-Up: County officials should develop and implement standard operating procedures (SOP) to ensure compliance with federal requirements and enhance oversight of disbursements.

Finding Text

Condition: During our review of sixty-one (61) disbursements totaling $2,280,846, we noted that eight (8) purchase orders totaling $390,313 were not supported with adequate documentation. Cause of Condition: Policies and procedures have not been designed and implemented to ensure compliance with federal award requirements. Effect of Condition: This condition resulted in noncompliance with federal grant requirements and could result in loss of federal funds to the County. Recommendation: OSAI recommends county officials and department heads gain an understanding of federal programs awarded to the County. Internal control procedures should be designed and implemented to ensure compliance with federal award requirements. Management Response: Chairman of the Board of County Commissioners: These disbursement issues originated during the prior County Clerk’s administration, but the current leadership is focused on corrective measures. Together, we are: • developing a SOP to ensure compliance with grant requirements, • establishing written standards of conduct to address and set clear guidelines over grant requirements, • and enhancing oversight and review to ensure all processes are fully compliant with federal regulations. Our goal is to build a consistent, transparent procurement framework that safeguards both compliance and public trust. County Clerk: I was not the County Clerk in office at this time. To correct this issue. the County plans to develop a SOP to timely and accurately track and report on federal funds. The SOP will be reviewed, adopted, and monitored by the Board of County Commissioners. Criteria: 2 CFR § 200.403 – Factors affecting allowability costs states in part, Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) be adequately documented.

Corrective Action Plan

Chairman of the Board of County Commissioners: These disbursement issues originated during the prior County Clerk’s administration, but the current leadership is focused on corrective measures. Together, we are: • developing a SOP to ensure compliance with grant requirements, • establishing written standards of conduct to address and set clear guidelines over grant requirements, • and enhancing oversight and review to ensure all processes are fully compliant with federal regulations. Our goal is to build a consistent, transparent procurement framework that safeguards both compliance and public trust. County Clerk: I was not the County Clerk in office at this time. To correct this issue. the County plans to develop a SOP to timely and accurately track and report on federal funds. The SOP will be reviewed, adopted, and monitored by the Board of County Commissioners.

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1171694 2022-011
    Material Weakness Repeat
  • 1171695 2022-012
    Material Weakness Repeat
  • 1171697 2022-014
    Material Weakness Repeat
  • 1171698 2022-015
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.28M
15.226 PAYMENTS IN LIEU OF TAXES $184,465
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $75,786
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $70,458
20.615 E-911 GRANT PROGRAM $31,977
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $20,000
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $18,938
15.433 FLOOD CONTROL ACT LANDS $14,463
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $14,239
97.039 HAZARD MITIGATION GRANT $5,958
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $5,761