Finding 34105 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-04-17
Audit: 34909
Organization: Logan County, Illinois (IL)

AI Summary

  • Core Issue: The County failed to maintain proper internal controls, with the Director of Finance both preparing and reviewing financial reports.
  • Impacted Requirements: This lack of separation in duties led to non-compliance with reporting standards, risking inaccuracies in submissions to the U.S. Department of Health and Human Services.
  • Recommended Follow-Up: Implement a process where reports are reviewed by someone other than the preparer, ensuring both parties understand compliance requirements to enhance accuracy and timeliness.

Finding Text

Finding No. 2022-004 ? Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: COVID 19 ? Immunization Cooperative Agreements Federal Assistance Listing Number: 93.268 Pass-Through Agency: Illinois Department of Public Health (25080054J and 15080653I) Award Period: July 1, 2021 through June 30, 2022 December 1, 2020 through December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: The County did not consistently apply the designed internal control over compliance as, in certain instances, the Director of Finance at the Health Department was performing both the preparation and review of reports. There was not a separate individual reviewing these reports prior to being submitted. Criteria: Financial reports submitted to the granting agencies must be complete, accurate, and submitted in a timely manner. Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Finding No. 2022-004 ? Reporting (Continued) Context: We noted in 3 of the 5 financial reports tested, the report was not reviewed by an individual separate from the preparer. Effect: The County did not comply with the compliance requirements for reporting set forth in the Uniform Guidance, which could result in the reports being completed incorrectly. Cause: Management informed us that the inaccurate and untimely reporting was an oversight and caused by lack of consistent internal control over compliance. Repeat Finding: Finding was reported in the immediate previous fiscal year as finding 2022-003. Recommendation: To ensure accurate and timely reporting, we recommend that reports be reviewed by an individual separate from the preparer. Both the preparer and reviewer should possess a thorough understanding of compliance requirements set forth in the Uniform Guidance. Views of Responsible Officials: Management will review its processes and ensure that internal control over compliance is implemented on a consistent basis. The financial reports were completed and submitted while one of the finance employees was absent. Going forward, the financial reports will not be submitted until both finance employees have processed and reviewed them.

Corrective Action Plan

Management will review its processes and ensure that internal control over compliance is implemented on a consistent basis. The financial reports were completed and submitted while one of the finance employees was absent. Going forward, the financial reports will not be submitted until both finance employees have processed and reviewed them.

Categories

Reporting Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 34106 2022-005
    Significant Deficiency
  • 610547 2022-004
    Significant Deficiency Repeat
  • 610548 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $672,918
93.268 Immunization Cooperative Agreements $173,853
20.509 Formula Grants for Rural Areas and Tribal Transit Program $171,822
97.067 Homeland Security Grant Program $152,161
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $110,986
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $103,447
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $83,587
20.106 Airport Improvement Program $60,645
93.498 Provider Relief Fund $60,471
20.205 Highway Planning and Construction $56,306
93.994 Maternal and Child Health Services Block Grant to the States $40,320
93.069 Public Health Emergency Preparedness $39,938
90.404 2018 Hava Election Security Grants $29,692
93.667 Social Services Block Grant $10,163
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $5,867
10.572 Wic Farmers' Market Nutrition Program (fmnp) $1,000