FAC Explorer

Finding 1238842 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 413785
Organization: Belmont County (OH)
Auditor: KEITH FABER AUDITOR OF STATE OF OHIO

AI Summary

  • Core Issue: The County overstated current period expenditures by $1,059,739 in the SLFRF report due to misreporting interest revenue as grant expenditures.
  • Impacted Requirements: Compliance with 2 C.F.R. § 200.302(b)(2) and 31 CFR § 35.4(c) for accurate financial disclosures and periodic reporting.
  • Recommended Follow-Up: Implement procedures to review and verify all reports before submission to prevent inaccuracies and potential funding penalties.

Finding Text

2 C.F.R. Subpart E § 200.302(b)(2) requires that entities must present accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. 31 CFR § 35.4(c) further states in part that during the period of performance, recipients shall provide periodic reports providing detailed accounting of the uses of funds. The State and Local Fiscal Recovery Funds (SLFRF) annual Project and Expenditure Report requires quantifiable objective criteria containing reported obligations and expenditures for the following Key Line Items: a. Current period obligation b. Cumulative obligation c. Current period expenditure d. Cumulative expenditure The Current Period Expenditures for the Health Department / Records Center / Coroner / GIG Loan on the County's submitted SLFRF Project and Expenditure Report for the grant period ending December 31, 2025 were overstated by $1,059,739. This was due to expenditures paid for using interest revenue were improperly reported as SLFRF grant expenditures in quarter 4. All other amounts were properly reported. Failure to complete and submit accurate reports for required data elements could result in the loss or reduction of future grant funding or penalties imposed by the federal agency. The County should establish and implement procedures to review reports submitted to the federal grantor before submission to ensure that all amounts are reported correctly.

Corrective Action Plan

We agree that the State and Local Fiscal Recovery Funds (SLFRF) Project and Expenditure Report was overstated by $1,059,739.66 for the grant period ended December 31, 2025. We contract with Bricker, Graydon, Wyatt LLP to complete the SLFRF reporting. We understand that we should review the report as it is completed by the law firm. Interest earned on SLFRF funds do not have to be remitted to the US Department of Treasury and is not subject to the SLRFR program use restrictions. Therefore, the issue deals primarily with reporting and classification. The County will review and reconcile all expenditures reported under the SLFRF grant receipts, interest earnings, expenditures, and amounts reported to the US Department of the Treasury. The County will ensure expenditures are accurately classified and reported according to the source of funds and applicable Treasury reporting requirements. We will review the report after it is prepared by the law firm and approve the reconciliation before the report is submitted. The reconciliation will specifically distinguish SLFRF award funds from interest earnings and other non-SLFRF revenues.

Categories

Period of Performance Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1238837 2025-002
    Material Weakness Repeat
  • 1238838 2025-003
    Material Weakness Repeat
  • 1238839 2025-003
    Material Weakness Repeat
  • 1238840 2025-004
    Material Weakness Repeat
  • 1238841 2025-004
    Material Weakness Repeat
  • 1238843 2025-002
    Material Weakness Repeat
  • 1238844 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $8.62M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $1.96M
93.778 GRANTS TO STATES FOR MEDICAID $1.86M
93.658 FOSTER CARE TITLE IV-E $905,889
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $877,726
93.563 CHILD SUPPORT SERVICES $760,567
93.659 ADOPTION ASSISTANCE $667,312
66.202 CONGRESSIONALLY MANDATED PROJECTS $427,193
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $308,704
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $282,219
17.259 WIOA YOUTH ACTIVITIES $189,684
17.258 WIOA ADULT PROGRAM $164,848
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $72,781
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $59,383
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $56,153
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $54,064
93.667 SOCIAL SERVICES BLOCK GRANT $47,889
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $21,081
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $10,011
16.554 NATIONAL CRIMINAL HISTORY IMPROVEMENT PROGRAM (NCHIP) $9,900
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $8,305
16.575 CRIME VICTIM ASSISTANCE $7,416
84.027 SPECIAL EDUCATION GRANTS TO STATES $4,307
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1,850
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $1,650
93.472 TITLE IV-E PREVENTION PROGRAM $1,609