FAC Explorer

Finding 8630 (2022-003)

Significant Deficiency
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2024-01-16
Audit: 11782
Organization: St. Joseph County (IN)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The County failed to adequately monitor subrecipients, lacking sufficient internal controls for compliance.
  • Impacted Requirements: Non-compliance with 2 CFR § 200.331 and 2 CFR § 200.332 regarding subrecipient monitoring and documentation.
  • Recommended Follow-up: Ensure regular communication and documentation with subrecipients, including quarterly updates and receipt of financial statements.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number 21.027 Fedearl Award Program Year: January 1, 2022 - December 31, 2022 Pass-through Agency: Indiana Finance Authority Pass-through Number: Unknown Type of finding: significant deficiency in internal control over compliance, other matter. Criteria or Specific Requirement - Subrecipient Monitoring: Pursuant to 2 CFR § 200.331, non-Federal entities can award subawards for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient. In addition, pursuant to 2 CFR 200.332, the non-Federal entity must identify to the subrecipient as a subaward and includes the Federal award identification. The non-Federal entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Fedderal statutes, regulations, and the terms and conditions of the subaward. Condition: The County could not provide support that it had sufficient review of the subrecipient during the year on a consistent basis. The County had not properly designed or implemented a system of internal controls that would likely be effective in preventing, detecting, and correcting, noncompliance. Question Costs: None Context: It was noted that the file selected for testing did not have documented evidence supporting that the County had sufficient monitoring and communication of the subrecipient. The file selected had a qualified opinion relating to their single audit that the County was wnaware. From a population of ten files, one was selected for testing. Our sample was not intended to be statistically valid. Effec: The County was unable to support that the subrecipients were being monitored. Cause: Failue to maintain sufficient monitoring of the subrecipient. Identification as a repeat finding: No Recommendation: We recommend that the County maintain adequate communication and documentation with the subrecipients to ensure compliance with the subrecipients requirement. This documentation could include a quarterly communication and receipt of the audited financial statements and single audit report, if applicable. Views of responsible officials and planned corrective action: The County is aware of the compliance requirement and has implemented additional procedures, including certain of those identified in the recommendation above, to be able to support subrecipient monitoring processes are in place. Person responsible for implementing: Abby Doyle, Chief Deputy Auditor Anticipated completion date: Completed.

Corrective Action Plan

Views of Responsible Official: We concur with the audit finding with respect to the monitoring of subrecipients for the American Rescue Plan funding. The County monitored the subrecipient agreement for the 50% matching requirement, and the subrecipient was paid properly. However, we did not obtain quarterly progress reports on the program. Description of Corrective Action Plan: Effective January 1st, 2024, the County will obtain progress reports on a quarterly basis for all active subrecipient agreements. Completion date: December 20, 2023.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 8628 2022-002
    Significant Deficiency Repeat
  • 8629 2022-002
    Significant Deficiency Repeat
  • 8631 2022-003
    Significant Deficiency
  • 585070 2022-002
    Significant Deficiency Repeat
  • 585071 2022-002
    Significant Deficiency Repeat
  • 585072 2022-003
    Significant Deficiency
  • 585073 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.563 Child Support Enforcement $4.46M
21.023 Emergency Rental Assistance Program $1.53M
93.495 Community Health Workers for Public Health Response and Resilient $829,677
93.268 Immunization Cooperative Agreements $582,215
97.047 Voluntary Home Buy-Out Program $284,839
16.588 Stop Violence Against Women Formula Grants $173,146
16.752 Economic, High-Tech, and Cyber Crime Prevention $79,117
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $69,028
20.205 Highway Planning and Construction $62,471
21.016 Equitable Sharing - Sheriff Federal Dea $58,463
10.553 School Breakfast Program $55,967
93.116 Health Tb Elimination $46,779
97.042 Emergency Management Performance Grants $46,432
93.069 Public Health Emergency Preparedness $38,900
16.050 Domestic Violence Grant $37,803
11.300 Investments for Public Works and Economic Development Facilities $35,070
16.575 Crime Victim Assistance $32,565
21.027 Coronavirus State and Local Fiscal Recovery Funds $27,475
20.513 Pm Transportation Mobility Grant $21,562
93.354 Cooperative Agreement for Emergency Response: Public Health Crisis Response $18,148
10.555 National School Lunch Program $7,450
97.067 Homeland Security Grant Program $3,882