Finding Text
Program - Various, including AL 10.923 – Emergency Watershed Protection Program – Reporting
Grant Number & Year - Various, including NR216526XXXXC004, December 7, 2020, through August 6, 2021
Federal Grantor Agency - Various, including U.S. Department of Agriculture
Pass-Through Entity - Various
Criteria -
Title 2 of the U.S. Code of Federal Regulations (CFR) § 200.510(b) (January 1, 2022) states, in part, the following:
The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502.
2 CFR § 200.512(a)(1) (January 1, 2022) states the following:
The audit must be completed and the data collection form described in paragraph (b) ofthis section and reporting package described in paragraph (c) of this section must besubmitted within the earlier of 30 calendar days after receipt of the auditor’s report(s),or nine months after the end of the audit period. If the due date falls on a Saturday,Sunday, or Federal holiday, the reporting package is due the next business day.
2 CFR § 200.508 (January 1, 2022) states, in part, the following:
The auditee must: (a) Procure or otherwise arrange for the audit required by this part in accordance with §200.509, and ensure it is properly performed and submitted when due in accordance with §200.512.
2 CFR § 200.303 (January 1, 2022) states the following, in relevant part:
The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States or the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures Federal Awards (SEFA) is presented properly and includes all Federal expenditures made by the County during the fiscal year. Additionally, those same
procedures should ensure the Federal audit is completed and submitted to the Federal Audit Clearinghouse within the time frame required by Title 2 CFR § 200.512.
Condition - The County did not have adequate procedures in place to monitor Federal expenditures and ensure the Schedule of Expenditures of Federal Awards (SEFA) was completed and submitted to the Federal Audit Clearinghouse in accordance with Title 2 CFR § 200.512.
Repeat Finding - No
Questioned Costs - None
Statistical Sample - No
Context - The County had a basic financial statement audit completed for the fiscal year ending June 30, 2022, which was issued on January 4, 2023, but that audit did not include the additional information necessary to meet Uniform Guidance and Single Audit Act
requirements. When the audit for the fiscal year ending June 30, 2023, was completed, the Auditor of Public Accounts identified that the County should have had a Single Audit completed for the fiscal year ending June 30, 2022.
Cause - Administration of Federal awards is decentralized, with each County office operating independently without any centralized reporting procedures in place to ensure all Federal expenditures of the County are reported accurately during the annual financial statement audit. Additionally, there is an overall lack of knowledge by County personnel related to Federal reporting requirements.
Effect - Noncompliance with Federal regulations and an increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions and Single Audits not being completed when required.
Recommendation - We recommend the County establish written procedures to ensure the SEFA is complete and accurate. Such procedures may include, among other things, a requirement that all offices in the County responsible for administering Federal grants report their grant expenditures, as well as related information, to a single individual in the County with overall responsibility for Federal reporting requirements. That individual should be knowledgeable of all Federal reporting and compliance requirements, and review expenditures provided by each office to ensure all amounts are accurate and include all Federal expenditures of the County. Further, we recommend the County obtain necessary training related to Federal reporting requirements and ensure a Single Audit is completed and submitted to the Federal Audit Clearinghouse within the time frame required by Title 2 CFR § 200.512.
View of Officials - The County will ensure County personnel obtain training to ensure there is a proper understanding of the Federal reporting requirements and preparation of the Schedule of Federal Awards.