Finding 1214452 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-05-12
Audit: 401154
Organization: COUNTY OF GALLATIN (MT)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The County failed to provide adequate supporting documentation for a reimbursement request, indicating a weakness in internal controls.
  • Impacted Requirements: Compliance with federal requirements for submitting SF-271 forms and retaining necessary documentation for reimbursement requests.
  • Recommended Follow-up: The County should enhance its internal controls to ensure accurate report preparation and documentation retention before submission.

Finding Text

U.S. Department of Transportation Federal Financial Assistance Listing 20.106 Airport Improvement Program Award #3-30-0077-016-2021 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: Recipients of federal financial assistance through the Airport Improvement Program are required to submit reporting form SF-271, Outlay Report and Request for Reimbursement for Construction Programs, and retain all supporting documentation for amounts requested for reimbursement. Condition: The County could not provide adequate supporting documentation for the amount requested for reimbursement for one SF-271 submission. Cause: The County does not have an internal control system designed to provide for the retention of supporting documentation for amounts reported on the Outlay Report and Request for Reimbursement for Construction Programs. Effect: The County is unable to substantiate that the reimbursement amount was properly reported or approve. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 3 reports out of a population of 10 reports were selected for testing, with 1 sample selection incurring errors. Repeat Finding from Prior Year(s): No Recommendation: The County should review its internal control over compliance processes surrounding the reporting function to ensure that reports are accurately prepared and reviewed for agreement with the accounting records before they are submitted and that all supporting documentation for reimbursement requests are retained. Views of Responsible Officials: The County acknowledges that supporting documentation for one sampled reimbursement request was not readily available during audit testing. This issue was identified within a limited sample and relates to documentation retention rather than the underlying accounting records. The County is implementing improved documentation retention and review procedures to ensure all supporting materials are maintained and accessible.

Corrective Action Plan

Reporting – Airport Improvement Program Finding Summary: Adequate supporting documentation for the amount requested for reimbursement with reporting form SF-271 was not available. Responsible Individuals: Aaron Mitchell, Chief Financial Officer Corrective Action Plan: The County is implementing enhanced documentation retention and review procedures to ensure supporting documentation for reimbursement requests is maintained, reviewed, and readily accessible prior to submission. Anticipated Completion Date: Ongoing

Categories

Cash Management Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1214453 2023-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.66M
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $661,925
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $580,000
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $372,293
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $264,885
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $247,333
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $240,017
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $180,000
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $156,236
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $142,242
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $125,902
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $124,149
16.575 CRIME VICTIM ASSISTANCE $106,382
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $84,597
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $68,140
97.067 HOMELAND SECURITY GRANT PROGRAM $66,852
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $61,873
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $61,819
10.577 SNAP PARTNERSHIP GRANT $56,571
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $45,310
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $42,691
93.110 SPECIAL PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $19,999
10.664 COOPERATIVE FORESTRY ASSISTANCE $17,555
10.578 WIC GRANTS TO STATES (WGS) $15,835
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $15,748
90.404 HAVA ELECTION SECURITY GRANTS $7,569
93.917 HIV CARE FORMULA GRANTS $1,596
10.572 WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP) $722
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $654
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $385