Finding Text
Criteria: Washington County, Arkansas, Federal Programs (the “County”) is required to prepare a schedule of expenditures of federal awards (“SEFA”) that accurately and completely presents all federal awards expended during the year in accordance with 2 CFR 200.510(b). The identification of major programs is required under 2 CFR 200.518 and is dependent on the completeness and accuracy of the SEFA. Condition: The County’s SEFA excluded expenditures related to ARPA, resulting in the omission of a federal program that should have been identified as a Type A program and audited as a major program. Cause: The County did not have effective procedures in place to identify and evaluate new or non-routine federal funding sources, specifically ARPA-related funding, within its grants administration process to ensure such programs were appropriately recorded and reported on the SEFA. Effect or Potential Effect: The SEFA was materially understated by $12,123,653. A required major program was not initially identified or audited in accordance with the Uniform Guidance. Major program determination under 2 CFR 200.518 was incorrect. Recommendation: We recommend formal procedures be established to evaluate all grants executed, received, and expended to determine whether they are required to be reported in the SEFA. The new management team has since implemented revised procedures to enhance the identification and tracking of federal expenditures.