Finding 502333 (2021-005)

Material Weakness
Requirement
ABHLN
Questioned Costs
-
Year
2021
Accepted
2024-10-10
Audit: 324377
Organization: Alfalfa County (OK)

AI Summary

  • Core Issue: The County lacks essential controls over major federal disaster grant programs, risking compliance and potential loss of funds.
  • Impacted Requirements: Key areas affected include Control Environment, Risk Assessment, Information and Communication, and Monitoring.
  • Recommended Follow-Up: Develop and implement a comprehensive internal control system to ensure compliance with grant requirements.

Finding Text

Finding 2021-005 – Lack of County-Wide Controls Over Major Federal Programs – Disaster Grants – Public Assistance (Presidentially Declared Disasters) PASS-THROUGH GRANTOR: Oklahoma Department of Emergency Management FEDERAL AGENCY: U.S. Department of Homeland Security ASSISTANCE LISTING NO: 97.036 FEDERAL PROGRAM NAME: Disaster Grants – Public Assistance (Presidentially Declared Disasters) FEDERAL AWARD NUMBER: DR-4438 FEDERAL AWARD YEAR: 2020 and 2021 CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Cost Principals; Period of Performance; Reporting; Special Tests & Provisions QUESTIONED COSTS: $-0- Condition: County-wide controls regarding Control Environment, Risk Assessment, Information and Communication, and Monitoring have not been designed. Cause of Condition: Policies and procedures have not been designed and implemented to ensure the County complies with grant requirements. Effect of Condition: This condition could result in noncompliance to grant requirements and could lead to a loss of federal funds to the County. Recommendation: OSAI recommends that the County design and implement a system of internal controls to ensure compliance with grant requirements. Management Response: Chairman of the Board of County Commissioners: This is something we will address in our County Officers’ meetings. County Clerk: All persons involved in federal grants will set time aside to develop policies and procedures regarding the county-wide controls over federal grants. County Treasurer: I will make sure I communicate clearly with the County Clerk and others involved in federal grants and encourage other offices to do the same. County Commissioner District 2: I did not take office until January 2021; therefore, I was not in office during FEMA disaster #4438 declared in 2019. In any future FEMA declared emergencies, I will exercise due diligence and oversee any and all documents relative to the disaster. County Commissioner District 3: I will research information regarding the federal grants the County receives and discuss them in the County Officers’ meetings. Criteria: The GAO Standards – Section 1 – Fundamental Concepts of Internal Control – OV1.01 states in part: Definition of Internal Control Internal control is a process effected by an entity’s oversight body, management, and other personnel that provides reasonable assurance that the objectives of an entity will be achieved. Additionally, GAO Standards – Section 2 – Establishing an Effective Internal Control System – OV2.04 states in part: Components, Principles, and Attributes Control Environment – the foundation for an internal control system. It provides the discipline and structure to help an entity achieve its objectives. Risk Assessment – Assesses the risks facing the entity as it seeks to achieve its objectives. This assessment provides the basis for developing appropriate risk responses. Information and Communication – The quality information management and personnel communicate and use to support the internal control system. Monitoring – Activities management establishes and operates to assess the quality of performance over time and promptly resolve the findings of audits and other reviews.

Corrective Action Plan

The Officers of Alfalfa County will meet to discuss the County-Wide Controls over the administration of Major Federal Programs. After discussing and gaining input from all those involved, written procedures will be approved and distributed.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Special Tests & Provisions Allowable Costs / Cost Principles Period of Performance Reporting

Other Findings in this Audit

  • 502334 2021-006
    Material Weakness
  • 502335 2021-007
    Material Weakness
  • 1078775 2021-005
    Material Weakness
  • 1078776 2021-006
    Material Weakness
  • 1078777 2021-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $592,062
21.019 Coronavirus Relief Fund $117,162
15.226 Payments in Lieu of Taxes $88,545
20.615 E-911 Grant Program $6,298