Finding 1225605 (2024-006)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-08-04
Audit: 408486
Organization: Iroquois County, Illinois (IL)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically regarding the documentation of disbursement approvals.
  • Impacted Requirements: The finding relates to the need for proper internal controls as outlined in Uniform Grant Guidance (2 CFR 200.303), which mandates documented reviews of disbursements.
  • Recommended Follow-Up: Strengthen the review process for disbursements by clarifying required documentation for approvals to prevent inappropriate expenditures.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID 19-Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4201; FY24 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include disbursements be reviewed, and this review should be documented. Condition: We noted the supporting documentation for a grant-related disbursement included an invoice that was reviewed and approved by the department head but did not include the board chairman’s signature but was paid by the treasurer’s office. Questioned Costs: None Context: This issue was noted in 1 of 8 disbursements tested for this program. Cause: Oversight Effect: Lack of proper documented review prior to payment can allow an inappropriate expenditure to occur. Repeat Finding: No Recommendation: We recommend the County strengthen internal controls over the review process of disbursements. This can include ensuring it is clear what documentation is required to support approval. Views of Responsible Officials: There is no disagreement with this finding.

Corrective Action Plan

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 – Cash Disbursements Recommendation: We recommend the County strengthen internal controls over the review process of disbursements. This can include ensuring it is clear what documentation is required to support approval. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The county will ensure that documented reviews are completed and retained. Name of the contact persons responsible for corrective action: Jill Johnson, Finance Manager, and Department Heads and Elected Officials Planned completion date for corrective action plan: November 30, 2025

Categories

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1225604 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $646,891
97.039 HAZARD MITIGATION GRANT $41,041
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $35,831
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $29,765
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $17,439
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $11,851
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $7,366
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $6,100
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $3,359
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $3,092
66.032 STATE AND TRIBAL INDOOR RADON GRANTS $1,290