FAC Explorer

Finding 8639 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-01-16
Audit: 11795
Organization: Kandiyohi County (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The County is not submitting reimbursement requests on time, impacting cash flow and accuracy of federal expenditure reports.
  • Impacted Requirements: This finding relates to compliance with Title 2 U.S. Code of Federal Regulations § 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: The County should establish and implement procedures to ensure reimbursement requests are submitted at least quarterly.

Finding Text

TIMELY REIMBURSEMENT REQUESTS (2022-004) Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction (Highway Planning and Construction Cluster) Assistance Listing Number: 20.205 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Numbers: 34-604-032, T8C309 Federal Award Identification Number and Year: 1030034, T8C309, 2022 Compliance Requirement Affected: Reporting Award Period: Year Ending December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In September 2022, the county requested reimbursement for project costs totaling 933,846 for expenditures incurred during August 2021 through July of 2022. Questioned Costs: None. Context: During our testing of reports submitted in 2022, it was noted the County has not submitted reimbursement requests timely. Cause: The County does not have policies or procedures in place to ensure reimbursement requests are submitted timely after costs are incurred. Effect: By submitting untimely reimbursement requests, the County is not receiving funds it is owed in a timely manner, which has the potential to cause cash flow shortages. It also increases the likelihood that federal expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) are not accurate, causing the potential of the SEFA to be materially misstated. Repeat Finding: Yes, Finding 2021-003. Recommendation: We recommend the County review internal controls currently in place and design and implement procedures to request reimbursements timelier and to submit requests for reimbursements on at least a quarterly basis. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The County will implement procedures to ensure timely submission of reimbursement requests.

Corrective Action Plan

2O22-OO4 TIMELY REIMBURSEMENT REQUESTS Recommendation: lt is recommended the County review internal controls currently in place and design and implement procedures to request reimbursements timelier and to submit requests for reimbursements on at least a quarterly basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will continue to work at this area and internal controls to achieve the overall goal. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2023

Categories

Reporting

Other Findings in this Audit

  • 8640 2022-004
    Significant Deficiency Repeat
  • 8641 2022-005
    Significant Deficiency
  • 8642 2022-005
    Significant Deficiency
  • 8643 2022-005
    Significant Deficiency
  • 585081 2022-004
    Significant Deficiency Repeat
  • 585082 2022-004
    Significant Deficiency Repeat
  • 585083 2022-005
    Significant Deficiency
  • 585084 2022-005
    Significant Deficiency
  • 585085 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $966,918
93.563 Child Support Enforcement $687,797
93.558 Temporary Assistance for Needy Families $672,381
21.027 Coronavirus State and Local Fiscal Recovery Funds $654,311
93.658 Foster Care_title IV-E $595,007
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $446,828
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $386,450
93.268 Immunization Cooperative Agreements $333,150
93.667 Social Services Block Grant $332,125
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $183,283
16.575 Crime Victim Assistance $119,141
97.012 Boating Safety Financial Assistance $75,753
93.994 Maternal and Child Health Services Block Grant to the States $55,033
10.025 Plant and Animal Disease, Pest Control, and Animal Care $54,500
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $41,038
93.778 Medical Assistance Program $40,096
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $37,817
90.404 2018 Hava Election Security Grants $33,717
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $28,460
97.042 Emergency Management Performance Grants $27,937
20.615 E-911 Grant Program $27,696
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $26,224
16.607 Bulletproof Vest Partnership Program $19,313
20.600 State and Community Highway Safety $16,329
93.575 Child Care and Development Block Grant $14,677
20.616 National Priority Safety Programs $13,259
16.606 State Criminal Alien Assistance Program $12,054
93.669 Child Abuse and Neglect State Grants $11,020
93.645 Stephanie Tubbs Jones Child Welfare Services Program $7,499
93.590 Community-Based Child Abuse Prevention Grants $6,278
10.069 Conservation Reserve Program $6,227
93.556 Promoting Safe and Stable Families $3,559
84.181 Special Education-Grants for Infants and Families $2,827
15.611 Wildlife Restoration and Basic Hunter Education $2,285
93.767 Children's Health Insurance Program $2,118
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,450
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1,281
93.566 Refugee and Entrant Assistance_state Administered Programs $652