Finding 58096 (2022-009)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-07-24
Audit: 53495
Organization: County of San Joaquin (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The County lacks a formal review and approval process for federal expenditures, leading to inadequate internal controls.
  • Impacted Requirements: This violates the Uniform Guidance, Section 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-up: Implement policies to ensure all program expenditures are reviewed and approved by someone other than the preparer.

Finding Text

Program: Community Development Block Grants (CDBG)/Entitlement Grants Cluster Federal Financial Assistance Listing No.: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Pass-through: N/A Award Year: 2021-2022 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Grant Award Number: All Type of Finding: Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance, Section 200.303 Internal Controls, requires the non-Federal entity must establish and maintain effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition Found: As a result of our audit, we noted there was a lack of evidence of a formal review and approval process of federal expenditures that the County claimed for the program by an individual outside of the preparer. Cause: The County did not have internal controls in place to ensure a formal review and approval process was documented for the federal program expenditures claimed by someone other than the preparer. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal awards administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 60 expenditure transactions were selected for testing out of population of 405 non-payroll expenditure transactions and 260 payroll transactions. Of the 60, 50 transactions tested were non-payroll related. Of the 50 non-payroll transactions tested, 7 transactions totaling $252,594 had exceptions noted for having no evidence of a formal review by management. Total program expenditures were $3,992,519. Repeat Finding from Prior Year(s): This is not a repeat finding. Recommendation: We recommend the County implement policies and procedures to ensure all program expenditure transactions are properly reviewed and approved. Views of Responsible Officials and Planned Corrective Actions: Management agrees. See separate corrective action plan.

Categories

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 58081 2022-012
    Significant Deficiency
  • 58082 2022-007
    Material Weakness
  • 58083 2022-008
    Material Weakness
  • 58084 2022-009
    Material Weakness
  • 58085 2022-010
    Material Weakness Repeat
  • 58086 2022-009
    Material Weakness
  • 58087 2022-010
    Material Weakness Repeat
  • 58088 2022-009
    Material Weakness
  • 58089 2022-010
    Material Weakness Repeat
  • 58090 2022-009
    Material Weakness
  • 58091 2022-010
    Material Weakness Repeat
  • 58092 2022-009
    Material Weakness
  • 58093 2022-010
    Material Weakness Repeat
  • 58094 2022-009
    Material Weakness
  • 58095 2022-010
    Material Weakness Repeat
  • 58097 2022-010
    Material Weakness Repeat
  • 58098 2022-009
    Material Weakness
  • 58099 2022-010
    Material Weakness Repeat
  • 58100 2022-009
    Material Weakness
  • 58101 2022-010
    Material Weakness Repeat
  • 58102 2022-009
    Material Weakness
  • 58103 2022-010
    Material Weakness Repeat
  • 58104 2022-009
    Material Weakness
  • 58105 2022-010
    Material Weakness Repeat
  • 58106 2022-009
    Material Weakness
  • 58107 2022-010
    Material Weakness Repeat
  • 58108 2022-009
    Material Weakness
  • 58109 2022-010
    Material Weakness Repeat
  • 58110 2022-011
    Material Weakness Repeat
  • 58111 2022-011
    Material Weakness Repeat
  • 58112 2022-011
    Material Weakness Repeat
  • 58113 2022-011
    Material Weakness Repeat
  • 58114 2022-011
    Material Weakness Repeat
  • 58115 2022-011
    Material Weakness Repeat
  • 58116 2022-011
    Material Weakness Repeat
  • 58117 2022-011
    Material Weakness Repeat
  • 58118 2022-011
    Material Weakness Repeat
  • 58119 2022-011
    Material Weakness Repeat
  • 58120 2022-006
    Material Weakness Repeat
  • 58121 2022-006
    Material Weakness Repeat
  • 58122 2022-004
    Material Weakness Repeat
  • 58123 2022-004
    Material Weakness Repeat
  • 58124 2022-005
    Material Weakness Repeat
  • 58125 2022-005
    Material Weakness Repeat
  • 58126 2022-005
    Material Weakness Repeat
  • 58127 2022-005
    Material Weakness Repeat
  • 58128 2022-005
    Material Weakness Repeat
  • 634523 2022-012
    Significant Deficiency
  • 634524 2022-007
    Material Weakness
  • 634525 2022-008
    Material Weakness
  • 634526 2022-009
    Material Weakness
  • 634527 2022-010
    Material Weakness Repeat
  • 634528 2022-009
    Material Weakness
  • 634529 2022-010
    Material Weakness Repeat
  • 634530 2022-009
    Material Weakness
  • 634531 2022-010
    Material Weakness Repeat
  • 634532 2022-009
    Material Weakness
  • 634533 2022-010
    Material Weakness Repeat
  • 634534 2022-009
    Material Weakness
  • 634535 2022-010
    Material Weakness Repeat
  • 634536 2022-009
    Material Weakness
  • 634537 2022-010
    Material Weakness Repeat
  • 634538 2022-009
    Material Weakness
  • 634539 2022-010
    Material Weakness Repeat
  • 634540 2022-009
    Material Weakness
  • 634541 2022-010
    Material Weakness Repeat
  • 634542 2022-009
    Material Weakness
  • 634543 2022-010
    Material Weakness Repeat
  • 634544 2022-009
    Material Weakness
  • 634545 2022-010
    Material Weakness Repeat
  • 634546 2022-009
    Material Weakness
  • 634547 2022-010
    Material Weakness Repeat
  • 634548 2022-009
    Material Weakness
  • 634549 2022-010
    Material Weakness Repeat
  • 634550 2022-009
    Material Weakness
  • 634551 2022-010
    Material Weakness Repeat
  • 634552 2022-011
    Material Weakness Repeat
  • 634553 2022-011
    Material Weakness Repeat
  • 634554 2022-011
    Material Weakness Repeat
  • 634555 2022-011
    Material Weakness Repeat
  • 634556 2022-011
    Material Weakness Repeat
  • 634557 2022-011
    Material Weakness Repeat
  • 634558 2022-011
    Material Weakness Repeat
  • 634559 2022-011
    Material Weakness Repeat
  • 634560 2022-011
    Material Weakness Repeat
  • 634561 2022-011
    Material Weakness Repeat
  • 634562 2022-006
    Material Weakness Repeat
  • 634563 2022-006
    Material Weakness Repeat
  • 634564 2022-004
    Material Weakness Repeat
  • 634565 2022-004
    Material Weakness Repeat
  • 634566 2022-005
    Material Weakness Repeat
  • 634567 2022-005
    Material Weakness Repeat
  • 634568 2022-005
    Material Weakness Repeat
  • 634569 2022-005
    Material Weakness Repeat
  • 634570 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $22.12M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $14.77M
93.563 Child Support Enforcement $11.63M
11.307 Economic Adjustment Assistance $3.58M
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3.10M
14.231 Covid-19 - Emergency Solutions Grant Program $3.02M
10.569 Emergency Food Assistance Program (food Commodities) $3.01M
93.778 Medical Assistance Program $2.66M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.56M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $2.27M
93.958 Block Grants for Community Mental Health Services $2.09M
93.659 Adoption Assistance $1.93M
93.558 Temporary Assistance for Needy Families $1.63M
21.023 Covid-19 - Emergency Rental Assistance Program $1.52M
93.268 Immunization Cooperative Agreements $1.29M
93.667 Social Services Block Grant $1.05M
20.106 Covid-19 - Airport Improvement Program $1.01M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $885,773
16.575 Crime Victim Assistance $782,134
93.556 Promoting Safe and Stable Families $750,718
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $729,308
93.069 Public Health Emergency Preparedness $721,350
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $583,041
17.259 Wia Youth Activities $570,986
93.645 Stephanie Tubbs Jones Child Welfare Services Program $538,895
97.067 Homeland Security Grant Program $533,650
93.917 Covid-19 - Hiv Care Formula Grants $507,795
93.994 Maternal and Child Health Services Block Grant to the States $495,405
14.241 Housing Opportunities for Persons with Aids $396,437
93.052 National Family Caregiver Support, Title Iii, Part E $353,053
81.042 Weatherization Assistance for Low-Income Persons $345,752
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $286,430
97.042 Emergency Management Performance Grants $281,220
93.889 National Bioterrorism Hospital Preparedness Program $276,934
90.401 Covid-19 - Help America Vote Act Requirements Payments $263,974
10.568 Emergency Food Assistance Program (administrative Costs) $257,746
93.150 Projects for Assistance in Transition From Homelessness (path) $241,011
20.106 Airport Improvement Program $228,110
93.658 Foster Care_title IV-E $183,708
66.468 Capitalization Grants for Drinking Water State Revolving Funds $180,326
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $177,744
17.278 Wia Dislocated Worker Formula Grants $176,366
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $174,777
93.053 Nutrition Services Incentive Program $147,595
16.738 Edward Byrne Memorial Justice Assistance Grant Program $119,081
17.277 Covid-19 - Workforce Investment Act (wia) National Emergency Grants $110,566
10.553 School Breakfast Program $108,791
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $105,843
93.045 Covid-19 - Special Programs for the Aging_title Iii, Part C_nutrition Services $105,205
95.001 High Intensity Drug Trafficking Areas Program $103,480
93.044 Covid-19 - Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $101,097
14.267 Continuum of Care Program $99,228
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $94,105
16.922 Equitable Sharing Program $81,668
14.239 Home Investment Partnerships Program $80,788
14.231 Emergency Solutions Grant Program $72,083
93.958 Covid-19 - Block Grants for Community Mental Health Services $55,033
21.019 Covid-19 - Coronavirus Relief Fund $54,575
16.U01 Drug Enforcement Admin Domestic Cannabis Eradication $52,481
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $45,562
20.205 Highway Planning and Construction $42,911
93.090 Guardianship Assistance $36,686
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $33,615
93.959 Block Grants for Prevention and Treatment of Substance Abuse $30,000
10.170 Specialty Crop Block Grant Program - Farm Bill $29,370
10.025 Plant and Animal Disease, Pest Control, and Animal Care $28,643
93.917 Hiv Care Formula Grants $28,492
16.607 Bulletproof Vest Partnership Program $27,333
17.258 Wia Adult Program $27,052
20.616 National Priority Safety Programs $20,654
93.566 Refugee and Entrant Assistance_state Administered Programs $17,037
93.783 Aids Drug Assistance Program - Adap $14,704
97.024 Emergency Food and Shelter National Board Program $9,592
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $8,765
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $7,650
93.042 Covid-19 - Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $7,346
14.218 Community Development Block Grants/entitlement Grants $6,749
97.011 Boating Safety and Enforcement Grant $6,492
93.747 Elder Abuse Prevention Interventions Program $6,457
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $3,423
93.569 Covid-19 - Community Services Block Grant $1,011
93.568 Low-Income Home Energy Assistance $448
93.052 Covid-19 - National Family Caregiver Support, Title Iii, Part E $240
93.569 Community Services Block Grant $-65,498