Finding Text
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the trial balance and the Schedule of Expenditures of Federal Awards we noted the following: ? The County did not timely or accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The final Schedule of Expenditures and Federal Awards was provided over 90 days after year end. ? The County did not properly identify several federal funds in fiscal year 2022 on the initial Schedule of Expenditures and Federal Awards ? The County does not have a proper mechanism in place or a formal process to properly identify and track all federal funds. ? The County does not have a proper fund structure in place to properly segregate and identify federal funds in the trial balance to ensure the Schedule of Expenditures and Federal Awards is complete and accurate. ? It appears the ARPA funds that were provided upfront to the County, was used as part of the pooled cash in fund 411, to support other federal funds during the reimbursement process of the other federal funds. Criteria: OMB Uniform Guidance requires that the County identify all federal awards expended on the Schedule of Expenditures of Federal Awards. The Circular also requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The County has a decentralized federal account system and does not have a proper mechanism in place to set up, track, post, and monitor federal transactions in a timely and accurate manner throughout the year or at year end. Effect: The County is in violation of the Uniform Guidance requirements. Auditor?s Recommendation: We recommend that the County implement a system to ensure the following: ? The County should implement a centralized process to properly and accurately set up federal programs in the accounting system that is separate from other non-federal transactions and is easily identifiable as federal programs. ? The County should implement a centralized system that tracks and monitors all federal programs to ensure compliance with rules, laws, and regulations. ? The County should implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited Agency?s Response: Luna County recognizes this shortfall and is in the process of assigning the SEFA schedule to one individual which will be the focus of their work to ensure the accuracy and identity of all federal awards along with the annual accounting of such awards. Joanne Hethcox, Budget and Procurement Director will be responsible until the position is filled. Luna County anticipates completion in fiscal year 2023.