Finding Text
2022-001 Performance Reporting Prior Year Finding Number: 2021-002 Repeat Finding Since: 2021 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Homeland Security Program: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Award Number and Year: ID 127-UJNE1-00 FEMA-4390-DR-MN GM PROJECT 75390-PW 615, PA-05-MN-4442-PW-01317(0); 2021, 2022 Pass-Through Agency: Minnesota Department of Public Safety Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Quarterly performance reports (QPR) are due to the Minnesota Department of Public Safety-Homeland Security and Emergency Management (DPS-HSEM) no later than 15 days following the end of a quarter. Condition: Two of the four quarterly performance reports tested did not have supporting documentation on file, therefore, auditor was unable to trace the reports to supporting data. In addition, two of the four reports tested were not submitted by the due date of 15 days following the end of the quarter. Finally, the County has not implemented control procedures over the reporting process, including review. Questioned Costs: None. Context: Quarterly performance reports are required for large projects. A project is considered large if the total cost is above a threshold that is annually reviewed and adjusted by FEMA. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Redwood County is not in compliance with performance reporting requirements. Cause: County staff noted the individual responsible for preparing and submitting the reports resigned before the County was able to implement controls over the reporting process. Recommendation: We recommend Redwood County maintain supporting documentation for and prepare and submit quarterly performance reports as scheduled. We also recommend the County implement a procedure to review the reports for accuracy by someone other than the preparer prior to submission. View of Responsible Official: Acknowledge