FAC Explorer

Finding 390379 (2023-104)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301196
Organization: Coconino County (AZ)
Auditor: Arizona Auditor General

AI Summary

  • Core Issue: The County Administrative Department failed to submit 10 out of 12 required monthly financial reports for WIOA awards, risking reimbursement for $1,303,600 in federal expenditures.
  • Impacted Requirements: Non-compliance with federal award terms jeopardizes future funding and oversight by the Arizona Department of Economic Security.
  • Recommended Follow-Up: Ensure all missing reports are submitted, implement tracking for report deadlines, and provide training for staff on financial reporting requirements.

Finding Text

Cluster name: WIOA Cluster Assistance Listings numbers and names: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Award number and year: DI21-002282, July 1, 2020 through June 30, 2025 Federal agency: U.S. Department of Labor Pass-through grantor: Arizona Department of Economic Security Compliance requirement: Reporting Questioned costs: N/A Condition—Contrary to the County’s federal award terms, the County Administrative Department (Department) failed to submit 10 of 12 monthly financial reports during the year for each of the County’s WIOA awards, for which the County reported federal award expenditures totaling $1,303,600 during the period July 1, 2022, through June 30, 2023. Effect—The Department not submitting the required financial reports puts them at risk of not being reimbursed for allowable expenditures for the federal program and could affect whether the County receives future federal funding. In addition, the Department could put the pass-through grantor, Arizona Department of Economic Security, at risk of not being able to carry out its oversight responsibilities and effectively evaluate the program’s success and prevent and detect fraud. Cause—County management reported that it was aware of the program’s reporting requirements, but the Department failed to complete the reports because staff lacked accounting knowledge required to complete the reports. Further, the Department did not track its federal report submissions to the Arizona Department of Economic Security, and as a result, the program supervisors were unaware that the reports were not submitted. Criteria—The County’s federal award terms require it to submit financial reports to its pass-through grantor for each award for which services were provided. These reports include program financial information and are used by the pass-through grantor to monitor the County’s performance and compliance for the program and reimburse the County for program expenditures it incurs. Further, the federal award terms state that the County’s failure to submit accurate and complete reports by the 30th day following the end of a month could result in the County’s federal program expenditures not being reimbursed. Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Recommendations—The County should: 1. Follow the program’s federal award terms by: a. Requiring the Department to immediately complete and submit all missing federal financial reports to the Arizona Department of Economic Security. b. Requiring County departments to monitor and track when required reports are due and submitted to ensure they are completed accurately and submitted on time. 2. Provide training to Department staff responsible for administering the federal program on how to complete its required financial reports. The County’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.

Corrective Action Plan

Cluster name: WIOA Cluster Assistance Listings number and program name: 17.258 WIOA Adult Program 17.259 WIOA Youth Program 17.278 WIOA Dislocated Worker Formula Grants Contact person: Billy Francis, Executive Director, Coconino Workforce Development Board, County Administration Anticipated completion date: June 30, 2024 Concur. The County Administration department acknowledges the required financial reports were not all submitted during FY23. The Department did not have a tracking mechanism in place to ensure that all staff were aware of the status of report submission. Additionally, due to recent turnover, the Department did not have staff trained to complete the reports. The Department will complete and submit missing federal financial reports according to the direction provided by the Arizona Department of Economic Security. The County will ensure that the staff responsible for grant reporting have the knowledge and skills necessary to do so in compliance with federal requirements and grant accounting practices. The County has implemented a mechanism to monitor and track reporting due dates and oversee reports to ensure accuracy.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390376 2023-101
    Material Weakness
  • 390377 2023-102
    Material Weakness
  • 390378 2023-103
    Material Weakness
  • 390380 2023-103
    Material Weakness
  • 390381 2023-104
    Material Weakness
  • 390382 2023-103
    Material Weakness
  • 390383 2023-104
    Material Weakness
  • 966818 2023-101
    Material Weakness
  • 966819 2023-102
    Material Weakness
  • 966820 2023-103
    Material Weakness
  • 966821 2023-104
    Material Weakness
  • 966822 2023-103
    Material Weakness
  • 966823 2023-104
    Material Weakness
  • 966824 2023-103
    Material Weakness
  • 966825 2023-104
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.923 Emergency Watershed Protection Program $8.27M
10.691 Good Neighbor Authority $7.39M
21.032 Local Assistance and Tribal Consistency Fund $6.00M
10.665 Schools and Roads - Grants to States $2.57M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.86M
93.391 Covid-19 - Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1.51M
84.425U Education Stabilization Fund $1.02M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $854,206
17.259 Wioa Youth Activities $580,719
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $467,421
93.069 Public Health Emergency Preparedness $443,020
17.258 Wioa Adult Program $404,434
97.042 Emergency Management Performance Grants $370,117
12.610 Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies $370,103
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $340,685
93.569 Community Services Block Grant $327,171
17.278 Wioa Dislocated Worker Formula Grants $318,447
93.268 Covid-19 - Immunization Cooperative Agreements $287,179
10.689 Conservation Program (cfp) $280,500
93.917 Hiv Care Formula Grants $277,253
93.136 Injury Prevention and Control Research and State and Community Based Programs $260,064
84.041 Impact Aid $227,414
16.575 Crime Victim Assistance $205,975
10.167 Transportation Services $167,420
93.558 Temporary Assistance for Needy Families $148,361
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $125,402
47.076 Stem Education (formerly Education and Human Resources) $124,403
93.994 Maternal and Child Health Services Block Grant to the States $114,843
93.658 Foster Care Title IV-E $111,968
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $92,391
93.959 Block Grants for Prevention and Treatment of Substance Abuse $89,967
47.070 Computer and Information Science and Engineering $72,407
93.268 Immunization Cooperative Agreements $70,273
10.351 Rural Business Development Grant $68,417
10.704 Law Enforcement Agreements $65,000
16.554 National Criminal History Improvement Program (nchip) $55,755
93.991 Preventive Health and Health Services Block Grant $54,629
16.738 Edward Byrne Memorial Justice Assistance Grant Program $50,597
10.935 Urban Agriculture and Innovative Production $45,581
93.575 Childcare and Development Block Grant $43,116
93.667 Social Services Block Grant $40,119
84.358 Rural Education $33,035
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $29,729
20.616 National Priority Safety Programs $27,335
97.067 Homeland Security Grant Program $26,108
14.218 Community Development Block Grants/entitlement Grants $25,802
16.838 Comprehensive Opioid, Stimulant, and Other Subsances Use Program $22,978
84.425D Education Stabilization Fund $22,702
20.600 State and Community Highway Safety $22,038
93.568 Low-Income Home Energy Assistance $20,863
93.940 Hiv Prevention Activities Health Department Based $19,210
93.053 Nutrition Services Incentive Program $16,714
84.365 English Language Acquisition State Grants $16,615
93.563 Child Support Enforcement $15,582
84.027 Special Education Grants to States $13,496
21.023 Emergency Rental Assistance Program $13,345
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $13,293
84.206 Javits Gifted and Talented Students Education $10,626
93.788 Opioid Str $9,049
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $7,422
93.586 State Court Improvement Program $6,530
93.052 National Family Caregiver Support, Title Iii, Part E $4,881
93.103 Food and Drug Administrative Research $4,198
45.310 Grants to States $3,749
10.555 National School Lunch Program $3,677
93.597 Grants to States for Access and Visitation Programs $2,152
10.533 School Breakfast Program $1,957
93.647 Social Services Research and Demonstration $176