Finding Text
WHEELER COUNTY, OREGON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2023
This deficiency is related specifically to the preparation of the SEFA and does not reflect on controls over
compliance or transactional controls.
Responsible Official’s Response: We understand the importance of risk management and the need to address
risks in an informed, cost-beneficial way. We have addressed this finding with plans to develop controls over
preparing the SEFA. Specifically, we intend to track compliance requirements for all grants in a database to
address internal control issues over completeness. We also intend to implement review and approval controls
over the county drafted SEFA.
FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS
CURRENT YEAR
2023-003
Significant Deficiency in Internal Control over Compliance
Federal Awarding Agency: U.S. Department of Agriculture
Federal Program title and CFDA number: Forest Service Schools and Roads Cluster, CFDA #10.666
Compliance Requirements applicable to findings: Earmarking, Reporting, and Special Tests and Provisions
Findings: Significant Deficiency in internal controls over compliance of major programs.
Questioned Costs: $2,203 in likely questioned costs.
Criteria or specific requirement (including statutory, regulatory, or other citation): The Secure Rural Schools
and Community Self-Determination Act of 2000 requires a county receiving funds under the Forest Service
Schools and Roads Cluster to perform an allocation of funds between Title I, II, and II under based on county
court certified allocations. In the current year, that allocation included a federal sequestration of funds that
was also required to be allocated to Title I and Title III, which resulted in noncompliance with the requirements
related to earmarking and with special tests and provisions.
Annual certification of funds spent under Title III is also required. In the current year, that certification included
funds that were included in previous certifications, which resulted in noncompliance with the requirements
related to reporting.
Condition and context: During our review of the allocation of 2023 funds received, we noted an error in the
allocation performed by the county. Title I had an overallocation of funds by $2,203, and Title III was under
allocated by the same $2,203.
The reconciliation of the amounts included in the 2022 annual certification for Title III funding identified an
over certification of $11,303 that had already been included in the 2021 annual certification.
Questioned Costs: Actual questioned costs totaled $2,203 and consisted of amounts passed through to local
schools and expended in the road department on otherwise compliant uses. Cause: There is a lack of internal control over earmarking, reporting, and special tests and provisions over
allocation of Forest Service Schools and Roads funding and the annual certification. The county lacks review
and approval controls over the allocation of funds and the annual certification.
Effect: The effect is noncompliance with earmarking, reporting, and special tests and provisions requirements.
Recommendation: It is recommended that the county implement review procedures over the annual receipt
to verify amounts allocated are complete and accurate prior to posting to the general ledger. A recalculation
of both the certification and a detailed review of amounts used in the annual reporting is recommended.
Views of Responsible Officials and Planned Corrective Actions: The county understands and concurs with this
finding. It is the intention of the county to implement a review process to be completed prior to making formal
allocation and reporting of Forest Service Schools and Roads Cluster.
PRIOR YEAR
There were no findings or questioned costs for federal awards