FAC Explorer

Finding 35880 (2022-003)

-
Requirement
M
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 37536
Organization: Bandera County (TX)
Auditor: Neffendorf & Blocker PC

AI Summary

  • Core Issue: The County approved a subrecipient's use of funds for debt service payments, which is not allowed under federal regulations.
  • Impacted Requirements: Compliance with the Department of Treasury's rules regarding eligible uses of Coronavirus State and Local Fiscal Recovery Funds.
  • Recommended Follow-Up: The County should review allowable costs and enhance monitoring of subrecipient compliance with federal regulations.

Finding Text

Condition: The County approved a subrecipient?s use of Coronavirus State and Local Fiscal Recovery Funds for a debt service payment. Criteria: Department of Treasury 31 CFR Part 35 Coronavirus State and Local Fiscal Recovery Funds. The final rule provided that debt service is not an eligible use of funds. Cause of Condition: Management failed to monitor subrecipient compliance with Federal Regulations. Potential Effect of Condition: The County could be liable to return the funds. Questioned Costs: $14,039 Recommendation: The County should review the allowable costs for federal programs for compliance and monitor subrecipient use of funds for federal compliance.

Corrective Action Plan

Finding Summary: County approved COVID State and Local Fiscal Recovery Funds for a debt service payment. Federal regulations do not allow funds to be used for debt service and the county could be liable to return the funds. Responsible Individuals: Darryl Sadler, Bandera County Auditor Corrective Action Plan: Subrecipient has been contacted and a request for qualified expenses is being made. If subrecipient does not have enough qualified expenses, per signed county agreement with subrecipient, any non-qualified funds will be returned to county. Anticipated Completion Date: 04/13/2023

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.12M
90.404 2018 Hava Election Security Grants $104,771
97.067 Homeland Security Grant Program $22,805
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $10,500
16.738 Edward Byrne Memorial Justice Assistance Grant Program $5,082
93.069 Public Health Emergency Preparedness $3,319