Finding 500385 (2023-003)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323150
Organization: Jackson County, Colorado (CO)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The County lacks a documented review process for determining allowable costs and submitting required reports for the Local Assistance and Tribal Consistency Fund.
  • Impacted Requirements: This affects compliance with federal grant requirements, specifically regarding allowable costs, activities, and timely reporting.
  • Recommended Follow-Up: The County should establish and document a review process for these determinations and report submissions, ensuring oversight by someone not involved in the preparation.

Finding Text

Material Weakness, Internal Control Over Compliance, Allowable Costs & Activities, Reporting ALN 21.032: Local Assistance And Tribal Consistency Fund Federal Agency: U.S. Department Of Treasury Pass-Through Entity: N/A Criteria Or Specific Requirement: The Local Assistance and Tribal Consistency Fund (LATCF) was established to provide funding for counties and Tribal governments for revenue enhancement. Recipients are required to determine allowable costs and activities as well as submit periodic reports to the awarding agency on elements including financial data, projects funded, expenditures, and certain contracts and subawards. Condition: In our audit, we noted the County did not have a documented review process over the determination of allowable costs and activities or over the submission of the Obligation and Expenditure report. Cause: The County did not have an internal controls process in place over federal grant requirements related to allowable costs and activities and reporting of LATCF expenditures. Effect: Without sufficient documentation and monitoring controls, the County may not timely detect an error in allowable costs and activities or reporting requirements. Identification As A Repeat Finding: N/A Recommendation: We recommend the County improve its internal controls by documenting a review process over allowable costs and activities determinations and over Obligation and Expenditure reports submissions by a person that did not prepare the information related to the key aspects of the report. Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.

Corrective Action Plan

Material Weakness, Internal Control Over Compliance and Compliance, Allowable Costs and Activities, Reporting Personnel Responsible for Corrective Action: Samantha Martin, County Administrator Anticipated Completion Date: 12/31/2024 Corrective Action Plan: The County agrees with the auditor’s recommendation to improve its internal controls related to federal grant allowable costs and activities determinations and reporting requirements and will implement a process that ensures federal expenditure accounting and reports are prepared and then reviewed and approved by a separate employee prior to submission.

Categories

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 500386 2023-002
    Material Weakness
  • 1076827 2023-003
    Material Weakness
  • 1076828 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.032 Local Assistance and Tribal Consistency Fund $532,467
10.666 Schools and Roads - Grants to States $158,137
93.069 Public Health Emergency Preparedness $82,123
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $77,384
93.558 Temporary Assistance for Needy Families $48,931
93.268 Immunization Cooperative Agreements $32,503
93.778 Medical Assistance Program $24,455
93.563 Child Support Services $22,601
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $15,638
93.658 Foster Care Title IV-E $13,068
93.667 Social Services Block Grant $5,863
93.994 Maternal and Child Health Services Block Grant to the States $2,625
93.659 Adoption Assistance $2,318
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1,837
21.027 Coronavirus State and Local Fiscal Recovery Funds $483
93.575 Child Care and Development Block Grant $253
93.090 Guardianship Assistance $101