Finding 370705 (2022-004)

Significant Deficiency
Requirement
M
Questioned Costs
$1
Year
2022
Accepted
2024-02-27
Audit: 292400
Organization: Logan County Commission (WV)
Auditor: Bhm CPA Group

AI Summary

  • Core Issue: Logan County Commission did not monitor subrecipients, risking improper use of $993,739 in grant funds.
  • Impacted Requirements: Non-compliance with 2 CFR Part 200, which mandates monitoring to ensure funds are used appropriately.
  • Recommended Follow-Up: Review and implement procedures for subrecipient monitoring to align with grant compliance requirements.

Finding Text

Subrecipient Monitoring General Information: Grant Title: Airport Improvement Program ALN #: 20.106 Federal Agency: Department of Transportation Condition: We noted during our audit that the Logan County Commission failed to properly monitor subrecipients. Specifically, there was no assurance that the funds sent for reimbursement were expensed by the subrecipients. Criteria: Appendix XI of the 2 CFR Part 200 July 2021 Compliance Supplement states, in part: “Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f))…” Questioned Costs: $993,739 Context: $993,739 of disbursements were made to local governments without the subrecipients activities being monitored to ensure expenditures of the subaward were used for authorized purposes and in accordance with the grant guidelines. Cause: The Logan County Commission did not have procedures in place to ensure this subrecipient monitoring requirement was performed. Effect: Failure to properly monitor subrecipients increases the likelihood of errors or irregularities not being prevented or detected in a timely manner. Additionally, the risk of unallowable activities and unallowable costs is significantly increased. Management failed to comply with all applicable, material compliance requirements of the grant agreement. Recommendation: The Logan County Commission is directed to review this regulation and comply with the provisions set forth therein. Clients’ response See Corrective Action Plan

Corrective Action Plan

The Logan County Commission will endeavor to put procedures in place to ensure subrecepient monitoring requirements are performed in compliance with all applicable, material compliance requirements of the Grant agreement.

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Other Findings in this Audit

  • 370706 2022-005
    Significant Deficiency
  • 370707 2022-005
    Significant Deficiency
  • 947147 2022-004
    Significant Deficiency
  • 947148 2022-005
    Significant Deficiency
  • 947149 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $993,739
21.027 Coronavirus State and Local Fiscal Recovery Funds $772,564
16.838 Comprehensive Opioid Abuse Site-Based Program $187,061
16.710 Public Safety Partnership and Community Policing Grants $103,640
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $99,809
16.738 Edward Byrne Memorial Justice Assistance Grant Program $99,258
16.575 Crime Victim Assistance $83,113
16.839 Stop School Violence $76,887
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $72,982
16.582 Crime Victim Assistance/discretionary Grants $54,468
97.042 Emergency Management Performance Grants $46,000
93.778 Medical Assistance Program $42,612
16.034 Coronavirus Emergency Supplemental Funding Program $41,106
95.001 High Intensity Drug Trafficking Areas Program $40,022
16.588 Violence Against Women Formula Grants $25,163
97.039 Hazard Mitigation Grant $10,306
20.600 State and Community Highway Safety $10,096