Finding Text
PASS-THROUGH GRANTOR: Oklahoma Department of Emergency Management and Oklahoma
Office and Management and Enterprise Services
FEDERAL AGENCY: U.S. Department of Treasury
ASSISTANCE LISTING: 21.019
FEDERAL PROGRAM NAME: Coronavirus Relief Fund
FEDERAL AWARD NUMBER: Oklahoma CARES PPE; 4530-DR-OK; SA-2242
FEDERAL AWARD YEAR: 2021
CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Costs Principles; and
Period of Performance
QUESTIONED COSTS: $-0-
Condition: Through the process of gaining an understanding of the County’s internal control structure for
federal programs, it was noted that county-wide internal 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 is in compliance with grant requirements.
Effect of Condition: Without an adequate system of county-wide controls, there is greater risk of a
breakdown in control activities which could result in unrecorded transactions, undetected errors,
misappropriation of funds, and noncompliance with grant requirements.
Recommendation: OSAI recommends that the County implement a system of internal controls to ensure
compliance with grant requirements.
Management Response:
District 1 County Commissioner: Ottawa County has implemented a system of internal controls to ensure
compliance with the grant requirements.
District 2 County Commissioner: I was not in office at this time; however, I will work to implement a
system of internal controls to ensure compliance with grant requirements.
District 3 County Commissioner: I did not take office until January 2023; however, District 3 will work
to better understand all grant requirements to ensure compliance.
County Clerk: The County Clerk’s office is continuously learning policies and procedures needed to
ensure the County’s federal programs have adequate internal controls. The County Clerk’s office will work
on getting written internal control policies and procedures in place.
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.