Finding 565320 (2022-102)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-06-18
Audit: 359145
Organization: Apache County, Arizona (AZ)

AI Summary

  • Core Issue: The County reported expenditures of $12,363,513, but accounting records only showed $4,597,076, indicating a significant overreporting.
  • Impacted Requirements: Compliance with the requirement to submit accurate quarterly expenditure reports that match underlying accounting records.
  • Recommended Follow-Up: The County should develop and implement robust policies and procedures to ensure accurate reporting of expenditures.

Finding Text

Finding 2021-102 Reporting (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of Treasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The Coronavirus State and Local Fiscal Recovery Fund requires the submission of quarterly expenditure reports. The amount should agree to the underlying accounting records. Condition and context: The cumulative expenditure amount reported on the quarterly reports did not agree to the underlying accounting records for the grant. The County reported that $12,363,513 was spent as of yearend. However, the accounting records showed expenditures totaling $4,597,076. Cause: The County does not have adequate policies and procedures in place to ensure that expenditures are reported properly. Effect: The County’s reports were overreported. Recommendation: The County should establish policies and procedures to ensure that the amounts reported are accurate and agree to the underlying accounting records. 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 2022-102 - Reporting (Material Weakness, Compliance Finding) Assistance Listing Number: 21.027 Cluster Title: N/A Program Titles: Coronavirus State and Local Fiscal Recovery Fund Federal Agency: U.S. Department of theTreasury Award Year: 2021 Award Number: None Compliance Requirement: Reporting Question Costs: None Condition and context: The cumulative expenditure amount reported on the annual report did not agree to the underlying accounting records for the grant. The County reported that $12,363,513 was spent as of yearend. However, the accounting records showed expenditures totaling $4,597,076. Recommendation: The County should establish policies and procedures to ensure that the amounts reported are accurate and agree to the underlying accounting records. Contact Name: Ryan Patterson, County Manager Corrective Action Planned: The identified finding was caused by miscommunication between County personnel concerning revenue replacement funds. To circumvent this situation from happening in the future, the County has developed and implemented policies and procedures which require the reconciliation or reported amounts on the federal reports to the underlying trial balances. Finally, the County did fully expend all allowable revenue replacement funds in fiscal year 2023.Anticipated Completion Date: The County intends for these items to be completely corrected in its fiscal year 2023 Single Audit Report submission.

Categories

Material Weakness Reporting

Other Findings in this Audit

  • 565319 2022-101
    Material Weakness Repeat
  • 565321 2022-103
    Material Weakness Repeat
  • 1141761 2022-101
    Material Weakness Repeat
  • 1141762 2022-102
    Material Weakness
  • 1141763 2022-103
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.60M
10.665 Schools and Roads - Grants to States $644,597
93.069 Public Health Emergency Preparedness $262,827
97.042 Emergency Management Performance Grants $211,643
93.539 Pphf Capacity Building Assistance to Strengthen Public Health Immunization Infrastructure and Performance Financed in Part by Prevention and Public Health Funds $210,147
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $196,178
16.738 Edward Byrne Memorial Justice Assistance Grant Program $185,050
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $82,130
16.575 Crime Victim Assistance $57,448
93.268 Immunization Cooperative Agreements $52,404
93.994 Maternal and Child Health Services Block Grant to the States $46,025
45.310 Grants to States $42,588
10.664 Cooperative Forestry Assistance $41,993
16.034 Coronavirus Emergency Supplemental Funding Program $39,378
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $32,151
20.600 State and Community Highway Safety $20,637
10.704 Law Enforcement Agreements $14,879
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $12,529
16.607 Bulletproof Vest Partnership Program $7,180
90.404 Hava Election Security Grants $803