Finding 1227093 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-17
Audit: 409276
Organization: Highland County (OH)

AI Summary

  • Core Issue: The County reported incorrect expenses and submitted status reports late for multiple grants.
  • Impacted Requirements: Financial reports must be submitted annually within 90 days, and quarterly or semiannually within 30 days, as per federal regulations.
  • Recommended Follow-Up: The County should enhance internal controls to ensure accurate reporting and timely submissions to avoid negative impacts on future grant awards.

Finding Text

2 CFR § 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR § 200.328b which states “The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports." 2 CFR § 2400.101 also gives regulatory effect to the Department of Housing and Urban Development for 2 CFR § 200.328c which states "The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period." The State of Ohio Community Development Block Grant (CDBG) Program Grant Agreements for the Village of Greenfield Tornado Sirens/ City of Hillsboro Parks, (B-F-22-1BG-1), , and the City of Hillsboro Hotel Project (B-E-21-1BG-1), state that the grantee shall submit the required reports in an adequate and timely fashion. Grantor shall provide a format for these reports and shall instruct Grantee on the proper completion of said reports. All report forms and requirements listed herein shall be provided by Grantor, but shall not be construed to limit Grantor in making additional and/or further requests, nor in the change or addition of detail to the items listed. The Grantee shall submit to Grantor a Status Report within 30 days of the request by Grantor. Repair Assistance/ Home Building (B-C-22-1BG-1) states that the Grantee shall submit to Grantor a Status Report with 15 days of the request by Grantor. Due to deficiencies in controls over the reporting of grants, the following conditions were noted: The County incorrectly reported expenses of $500,000 instead of $400,000 resulting in a variance of $100,000 when making a status report in Office of Community Development Enterprise Application Network (OCEAN) for one grant. Three of the four status reports tested (75%) were filed late as follows: For grant agreement B-F-22-1BG-1, the status report due date was October 31, 2024; however the status report was filed on September 15, 2025.For grant agreement B-E-21-1BG-1, the status report due date was January 15, 2025; however the status report was filed on February 13, 2025. For grant agreement B-C-22-1BG-1, the status report due date was October 31, 2024; however the status report was filed on November 15, 2025. Per BF-22-1BG-1 grant agreement, Final Performance Reports for Grantee’s program, as described in Attachment C: Reporting Requirements, must be submitted to Grantor by October 31, 2024. The final performance report was not was not submitted until August 19, 2025. Reporting errors could adversely affect future grant awards. The County should review and implement internal controls to help ensure correct amounts are reported and reports are submitted timely.

Corrective Action Plan

Staff responsible for managing CDBG grants have received remedial training and are now aware of reporting deadlines. Additionally, all grant agreements are now required to be reported to the County Auditor's office or secondary review.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1227090 2024-002
    Material Weakness Repeat
  • 1227091 2024-002
    Material Weakness Repeat
  • 1227092 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.51M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.31M
93.658 FOSTER CARE TITLE IV-E $1.28M
93.778 GRANTS TO STATES FOR MEDICAID $1.14M
93.667 SOCIAL SERVICES BLOCK GRANT $895,991
93.563 CHILD SUPPORT SERVICES $335,782
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $241,137
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $188,546
81.041 STATE ENERGY PROGRAM $95,000
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $83,400
20.205 HIGHWAY PLANNING AND CONSTRUCTION $56,493
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $56,126
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $56,070
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $40,743
93.659 ADOPTION ASSISTANCE $31,091
16.575 CRIME VICTIM ASSISTANCE $29,879
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $19,805
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $16,034
93.912 RURAL HEALTHCARE SERVICES PROGRAMS $13,475
93.747 ELDER ABUSE PREVENTION INTERVENTIONS PROGRAM $11,490
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $4,801
90.404 HAVA ELECTION SECURITY GRANTS $4,500