FAC Explorer

Finding 597076 (2022-004)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-01-10
Audit: 28584
Organization: Rowan County, North Carolina (NC)
Auditor: Martin Starnes & Associates CPA P A

AI Summary

  • Core Issue: The County failed to provide required written justifications for premium pay to higher income workers, leading to non-compliance with federal regulations.
  • Impacted Requirements: Compliance with 2 CFR 200 and 31 CFR 35, which mandate effective internal controls and justification for premium pay expenditures.
  • Recommended Follow-Up: Ensure the grant administrator is fully trained on all regulations and reporting requirements related to the Coronavirus State and Local Fiscal Recovery Funds.

Finding Text

U.S. Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Non-Material Non-Compliance Material Weakness, Activities Allowed or Unallowed Criteria: In accordance with 2 CFR 200, the County is required to establish and maintain effective internal control over federal award that provides reasonable assurance that the County is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In accordance with 31 CFR 35, a written justification is required that explains how premium pay to certain higher income workers was responsive to the public health emergency. Condition: The guidelines for premium pay included in the interim and final rules over Coronavirus State and Local Fiscal Recovery Funds include a requirement to provide a written justification of premium pay to certain higher income individuals. Context: The County spent $5,234,382 of their allocation of Coronavirus State and Local Fiscal Recovery Funds, including $2,049,702 in premium pay to 860 workers during the year ended June 30, 2022. The total compensation of 28 of those employees was higher than the calculated threshold based on the County?s average annual wages. A written justification for these 28 employees was not included in the SLFRF Compliance Report ? SLT-3447-P&E Report-Q1 2022 as required due to a lack of oversight by management responsible for administering the grant. The written justification was later added to the Q2 2022 report and therefore, the County is in compliance with the final regulations. Effect: The County was not in compliance with requirements of the final regulations over premium pay during the year. The County later corrected the report to be in compliance. Cause: There was a lack of oversight of the premium pay calculations and execution of the County?s premium pay plan in conjunction with a misinterpretation of the interim rules under which the premium pay was administered. The administrator of the grant who filed the Q1 2022 report was not familiar with the written justification requirements. Questioned Cost: This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The County?s grant administrator should be familiar with all regulations over how Coronavirus State and Local Fiscal Recovery Funds are allowed to be spent and specific reporting requirements that apply to each category of funds. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness Reporting

Other Findings in this Audit

  • 20634 2022-004
    Material Weakness
  • 20635 2022-001
    Material Weakness
  • 20636 2022-002
    Material Weakness
  • 20637 2022-001
    Material Weakness
  • 20638 2022-002
    Material Weakness
  • 20639 2022-001
    Material Weakness
  • 20640 2022-002
    Material Weakness
  • 20641 2022-001
    Material Weakness
  • 20642 2022-002
    Material Weakness
  • 20643 2022-001
    Material Weakness
  • 20644 2022-002
    Material Weakness
  • 20645 2022-003
    Significant Deficiency
  • 597077 2022-001
    Material Weakness
  • 597078 2022-002
    Material Weakness
  • 597079 2022-001
    Material Weakness
  • 597080 2022-002
    Material Weakness
  • 597081 2022-001
    Material Weakness
  • 597082 2022-002
    Material Weakness
  • 597083 2022-001
    Material Weakness
  • 597084 2022-002
    Material Weakness
  • 597085 2022-001
    Material Weakness
  • 597086 2022-002
    Material Weakness
  • 597087 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $5.23M
93.778 Medical Assistance Program $3.11M
93.563 Child Support Enforcement $1.48M
93.568 Covid-19 Low-Income Home Energy Assistance $1.00M
93.658 Foster Care_title IV-E $824,560
93.667 Social Services Block Grant $616,981
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $496,367
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $415,821
20.509 Covid-19 Formula Grants for Rural Areas and Tribal Transit Program $355,789
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $282,527
93.568 Low-Income Home Energy Assistance $239,271
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $214,558
20.509 Formula Grants for Rural Areas and Tribal Transit Program $195,513
10.561 Covid-19 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $120,343
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $109,254
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $95,809
93.217 Family Planning_services $75,254
93.767 Children's Health Insurance Program $74,390
93.556 Marylee Allen Promoting Safe and Stable Families $65,796
93.994 Maternal and Child Health Services Block Grant to the States $62,555
93.645 Stephanie Tubbs Jones Child Welfare Services Program $44,207
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $39,401
93.044 Covid-19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $38,618
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $37,316
93.069 Public Health Emergency Preparedness $35,084
93.659 Adoption Assistance $30,657
93.991 Preventive Health and Health Services Block Grant $29,901
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $27,826
93.053 Nutrition Services Incentive Program $27,236
93.268 Immunization Cooperative Agreements $25,347
93.558 Temporary Assistance for Needy Families $21,127
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,820
14.239 Home Investment Partnerships Program $14,965
20.106 Airport Improvement Program, Covid19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $14,792
97.042 Emergency Management Performance Grants $11,221
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $6,300
93.268 Covid-19 Immunization Cooperative Agreements $3,400
16.606 State Criminal Alien Assistance Program $2,414
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $483
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $58
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50