Finding Text
Finding 2024-001
Criteria: Title 2 U.S. Code of Federal regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the financial management system of the County provide for the identification of all Federal awards received and expended and the Federal programs for which they are received. The Uniform Guidance also requires that the County prepare a Schedule of Expenditures of Federal Awards (SEFA) that includes all Federal awards expended during the fiscal year.
Condition: The federal awards expenditure data compiled by the County to prepare the SEFA was found to be incomplete and inaccurate.
Cause: Grant management is decentralized across County departments. At year end, the County Treasurer requests that department administrators complete a form summarizing data necessary for completion of the SEFA. In some instances, the data provided by department administrators was found to be incomplete or inaccurate.
Effect: The County is not in compliance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards.
Recommendation: We recommend all County departments receiving federal awards, establish a financial management system that provides for the identification of all Federal awards received and expended and the Federal programs for which they received.
Response: In the 2025 Budget, the County has a new separate fund, Fund 385, established to deal solely with the grant money that comes into Montgomery County. The County has transferred coal money to begin the fund and all Haz Mat, DCEO, Elections, etc. will go through this fund to keep it separate from regular budgeted money. Expenses will be paid out and revenue will return to this fund. This is for General Fund accounts, the Health Department will still be on their own process