FAC Explorer

Finding 1220246 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-29
Audit: 405347
Organization: Washington County, Minnesota (MN)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: There is a significant deficiency in the County's internal controls over financial reporting, specifically regarding the timely submission of reimbursement requests for highway projects.
  • Impacted Requirements: The County must establish adequate policies and procedures to ensure timely reimbursement requests, which helps avoid cash flow shortages and maximizes investment earnings.
  • Recommended Follow-Up: County management should review and enhance current internal controls, implementing procedures to submit reimbursement requests at least quarterly.

Finding Text

Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 082-090-010, 082-638-015, 082-030-007, 082-612-025, 082-596-005 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Numbers: 082-090-010, 082-638-015, 082-030-007, 082-612-025, 082-596-005 Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria or Specific Requirement: County management should be aware of the need to have adequate policies and procedures in place for timely reimbursement requests for highway projects. Condition: Policies and procedures in place for timely reimbursement requests will ensure that the County is receiving funds it is owed. In addition, this will ensure there are no cash flow shortages and increase opportunities for investment earnings. Questioned Costs: None. Context: A reimbursement request for work performed in 2024 (work certified as of Nov. 2024) was not submitted until June 2025. In addition, two other pay requests received in 2025 should have been recorded as accruals in 2024 when the expense was incurred and reported. Cause: The County had one highway project for which costs were incurred in October and November 2024, and the related reimbursement was submitted and approved in June 2025. Repeat Finding: No. Recommendation: We recommend County management review internal controls currently in place and design and implement procedures to request reimbursements in a timelier fashion and to submit requests for reimbursements on at least a quarterly basis. Views of Responsible Officials: There is no disagreement with the audit finding. The County will implement procedures to ensure timely submission of reimbursement requests.

Corrective Action Plan

Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria or Specific Requirement: County management should be aware if the need to have adequate policies and procedures in place for timely reimbursement requests for highway projects. Condition: Policies and procedures in place for timely reimbursement requests will ensure that the County is receiving funds it is owed. In addition, this will ensure there are no cash flow shortages and increase opportunities for investment earnings. Cause: The County had one highway project for which costs were incurred in October and November 2024, and the related reimbursement was submitted and approved in June 2025. Possible Effect: By submitting untimely reimbursement requests, the County is not receiving funds it is owed in a timely manner, which has the potential to cause cash flow shortages. Repeat Finding: No. Recommendation: We recommend County management review internal controls currently in place and design and implement procedures to request reimbursements in a timelier fashion and to submit requests for reimbursements on at least a quarterly basis. Views of Responsible Officials: There is no disagreement with the audit finding. The County will implement procedures to ensure timely submission of reimbursement requests. Anticipated Completion Date: December 31, 2026.

Categories

Cash Management Reporting Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $11.36M
93.778 GRANTS TO STATES FOR MEDICAID $7.96M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.40M
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $1.09M
93.667 SOCIAL SERVICES BLOCK GRANT $795,486
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $728,308
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $470,640
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $368,516
93.658 FOSTER CARE TITLE IV-E $366,584
20.205 HIGHWAY PLANNING AND CONSTRUCTION $305,611
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $291,961
97.067 HOMELAND SECURITY GRANT PROGRAM $219,552
93.563 CHILD SUPPORT SERVICES $216,271
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $212,390
93.009 COMPASSION CAPITAL FUND $212,097
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $196,317
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $185,369
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $165,178
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $160,367
16.575 CRIME VICTIM ASSISTANCE $140,000
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $131,487
17.258 WIOA ADULT PROGRAM $125,494
17.259 WIOA YOUTH ACTIVITIES $121,105
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $116,038
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $99,600
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $96,581
97.056 PORT SECURITY GRANT PROGRAM $80,988
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $77,443
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $73,148
16.922 EQUITABLE SHARING PROGRAM $69,659
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $62,212
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $60,286
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $52,236
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $33,008
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $31,707
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $14,061
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $10,794
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $10,112
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $8,122
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $6,000
45.310 GRANTS TO STATES $3,104
93.251 EARLY HEARING DETECTION AND INTERVENTION $2,100
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1,320
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $1,200
10.572 WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP) $400