Finding 503187 (2021-102)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-10-21
Audit: 325282
Organization: Apache County, Arizona (AZ)

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) was incomplete and contained incorrect amounts for federal grants.
  • Impacted Requirements: Compliance with Uniform Guidance, which mandates accurate reporting of all federal awards, including titles, numbers, and amounts.
  • Recommended Follow-Up: Establish a dedicated grants management department and conduct a thorough review of the general ledger to ensure all federal awards are accurately reported.

Finding Text

Finding 2021-102 Preparation of Schedule of Expenditures of Federal Awards (Repeat Finding) (Material Weakness, Compliance Finding) Assistance Listing Number: 21.019 Cluster Title: N/A Program Titles: Coronavirus Relief Funds Federal Agency: U.S. Department of Treasury Award Year: 2020 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: Uniform Guidance, requires that the County identify in its accounts all federal awards expended. This Circular also requires award identification to include, as applicable, the Assistance Listing title and number, the award number and years, the name of the federal granting agency, and the name of the pass-through entity. Condition and context: The Schedule of Expenditures of Federal Awards (SEFA) was not complete as it did not identify all federal grants and included the wrong expenditure amounts for some grants. Revisions to the SEFA were necessary that resulted in material grant expenditures that were reported inproperly on originally provided SEFA. This finding is similar to prior year finding 2020-102. Cause: The County does not have adequate policies and procedures in place to ensure that all federal grants are identified and included on the SEFA with the correct expenditure amount. Effect: The County’s initial SEFA was not prepared in accordance with Uniform Guidance. Recommendation: The County should establish a grants management department to identify all federal awards received and expended, as well as the federal programs under which they were received. Also, a thorough review of the general ledger should be performed to ensure that all federal awards are identified and reported on the SEFA. County’s Response: The County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Corrective Action Plan

Finding 2021-102 - Preparation of Schedule of Expenditures of Federal Awards (Material Weakness, Compliance Finding) CFDA Numbers: 21.019 Program Titles: Coronavirus Relief Funds Federal Agency: U.S. Department of Treasury Award Year: 2020 Award Number: None Compliance Requirement: Reporting Question Costs: None Condition and context: The Schedule of Expenditures of Federal Awards (SEFA) was not complete as it did not identify all federal grants and included the wrong expenditure amounts for some grants. Revisions to the SEFA were necessary that resulted in material grant expenditures that were reported improperly on the original SEFA. This finding is similar to prior year finding 2020-102 Recommendation: The County should establish a grants management department to identify all federal awards received and expended, as well as the federal programs under which they were received. Also, a thorough review of the general ledger should be performed to ensure that all federal awards are identified and reported on the SEFA. Contact Name: Timothy Hinton, Finance Director Corrective Action Planned: The County Finance Department will regularly conduct a review of the general ledger and coordinate with the other county departments to ensure that all federal grants are properly included on the SEFA. Anticipated Completion Date: May 2024

Categories

Reporting

Other Findings in this Audit

  • 503185 2021-103
    Material Weakness Repeat
  • 503186 2021-101
    Material Weakness Repeat
  • 503188 2021-104
    Material Weakness
  • 1079627 2021-103
    Material Weakness Repeat
  • 1079628 2021-101
    Material Weakness Repeat
  • 1079629 2021-102
    Material Weakness Repeat
  • 1079630 2021-104
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $4.91M
10.665 Schools and Roads - Grants to States $558,547
93.069 Public Health Emergency Preparedness $376,056
16.738 Edward Byrne Memorial Justice Assistance Grant Program $238,545
93.539 Immunization Infrastructure and Performance $192,596
97.042 Emergency Management Performance Grants $169,096
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $136,169
10.766 Community Facilities Loans and Grants $123,092
16.575 Crime Victim Assistance $83,193
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $81,074
93.994 Maternal and Child Health Services Block Grant to the States $69,484
93.268 Immunization Cooperative Agreements $60,281
10.351 Rural Business Development Grant $54,917
10.664 Cooperative Forestry Assistance $54,363
97.047 Bric: Building Resilient Infrastructure and Communities $51,619
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $50,820
90.404 Hava Election Security Grants $19,623
20.600 State and Community Highway Safety $15,436
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $9,632
16.034 Coronavirus Emergency Supplemental Funding Program $5,681
45.310 Grants to States $3,893
16.607 Bulletproof Vest Partnership Program $790