Finding Text
Federal Grantor: All Programs
Pass-through Grantor: All Programs
Federal Assistance Listing No.: All Programs
Program Title: All Programs Criteria: Title 2 U.S. Code of Federal Regulations Part 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual program, program title and assistance listing number, programs required to be identified as part of a cluster, name of the pass-through entity and identifying number assigned by the pass-through entity for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. Condition: The schedule of expenditures of federal awards (SEFA) reported by the County in the annual budget documents contained errors in amounts of federal expenditures reported. Additionally, the schedule did not include the identification of programs required to be part of a cluster, names of pass-through entities, identifying numbers assigned by the pass-through entities, or total amounts provided to subrecipients for the applicable programs. Discrepancies in amounts reported on the SEFA and amounts supported by underlying accounting records are summarized as follows: Furthermore, the SEFA prepared by the County does not indicate the amount of awards passed through to subrecipients. The County reported total expenditures of $245,925 under assistance listing number 10.665 - Schools and Roads - Grants to States. However, $62,770 of this amount was expended under assistance listing number 12.112 - Payments to States in Lieu of Real Estate Taxes and $85,241 of this amount was expended under assistance listing number 15.438 - National Forest Acquired Lands. Additionally, the County failed to identify the Forest Service Schools and Roads Cluster on the SEFA. All $245,925 of funds expended under these three programs was disbursed to schools and road districts, however, these awards to subrecipients were not reported on the SEFA. The County reported $35,914 in expenditures under assistance listing number 16.575 - Crime Victim Assistance. Expenditures of the County, as supported by the underlying accounting records for the reporting period, totaled $42,865. The pass-through grantor identified (Missouri Department of Public Safety) was incorrect, and the County omitted the identifying numbers assigned by the pass-through entity for the various grant agreements. The County was funded for this award through the Missouri Association of Prosecuting Attorneys under three separate grant agreements. The County reported $23,511 in expenditures under assistance listing number 20.205 - Highway Planning and Construction, however, underlying accounting records support expenditures of $14,758. The County omitted the identifying number assigned by the pass-through entity for the award and also failed to identify the Highway Planning and Construction Cluster on the SEFA. The County incorrectly reported $1,507,176 in expenditures under assistance listing number 21.019 - COVID-19 Coronavirus Relief Fund. Federal funds expended for this program were expended under assistance listing number 21.027 - COVID-19 Coronavirus State and Local Fiscal Recovery Funds. The County reported $10,362 in expenditures under assistance listing number 97.042 - Emergency Management Performance Grants, however, the underlying accounting records support expenditures of $11,878. The County omitted the identifying numbers assigned by the pass-through entity for the each grant agreement funded under this program. The County incorrectly reported $12,048 in expenditures under assistance listing number 97.067 - Homeland Security Grant Program. The funding total reported was received as part of a memorandum of understanding between Immigration and Customs Enforcement and the Barry County Sheriff's department for reimbursement of overtime incurred by the County during joint law enforcement operations. Per the Department of Treasury Executive Office for Asset Forfeiture (TEOAF) Directive No. 18, these funds do not constitute a federal grant and therefore, are not required to be reported on the SEFA. Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies varied. Effect: The SEFA presented for the audit did not accurately reflect the County's actual expenditures of federal awards for the year ended December 31, 2022. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year, such as performing a reconciliation between the SEFA and underlying accounting records. Federal reimbursement grants should be reported on the SEFA based on reimbursable expenditures made during the year. Management's Response: The treasurer will create a spreadsheet to help in the tracking of federal funds. The treasurer is currently working on the spreadsheet and is in the process of looking up all 2023 funds that will be ready for the 2024 budget year.