Finding 526797 (2021-010)

Material Weakness
Requirement
ABH
Questioned Costs
-
Year
2021
Accepted
2025-03-13
Audit: 345861
Organization: Muskogee County (OK)

AI Summary

  • Core Issue: The County lacks essential controls over the Coronavirus Relief Fund, risking noncompliance with grant requirements.
  • Impacted Requirements: Key areas like Control Environment, Risk Assessment, Information and Communication, and Monitoring are not properly designed or implemented.
  • Recommended Follow-Up: The County should establish a robust internal control system to ensure compliance with all grant requirements.

Finding Text

Finding 2021-010 – Lack of County-Wide Controls Over Major Federal Program – Coronavirus Relief Fund PASS THROUGH GRANTOR: Office of Management and Enterprise Services FEDERAL AGENCY: U. S. Department of the Treasury ASSISTANCE LISTING: 21.019 FEDERAL PROGRAM NAME: Coronavirus Relief Fund FEDERAL PROGRAM NUMBER: SA-0187 FEDERAL AWARD YEAR: 2021 CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Period of Performance 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 with grant requirements. 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: Muskogee County has hired an internal grant administrator to assist in keeping the county compliant with all local, state, and federal requirements. Efforts will be made going forward to ensure that all grant funds are properly expended. 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

Assistance Listing Number 21.019 Lack of County-Wide Controls Over Major Federal Programs Coronavirus Relief Fund Muskogee County has hired an internal grant administrator to assist in keeping the county compliant with all local, state, and federal requirements. Efforts will be made going forward to ensure that all grant funds are properly expended.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 526798 2021-011
    Material Weakness
  • 526799 2021-012
    Material Weakness
  • 1103239 2021-010
    Material Weakness
  • 1103240 2021-011
    Material Weakness
  • 1103241 2021-012
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $1.59M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $144,992
15.226 Payments in Lieu of Taxes $63,674
10.766 Community Facilities Loans and Grants $60,600
12.106 Flood Control Projects $46,066
97.042 Emergency Management Performance Grants $19,876
16.738 Edward Byrne Memorial Justice Assistance Grant Program $13,539
90.404 Hava Election Security Grants $8,435