FAC Explorer

Finding 8702 (2022-005)

Material Weakness Repeat Finding
Requirement
LN
Questioned Costs
-
Year
2022
Accepted
2024-01-17
Audit: 11849
Organization: Dakota County (MN)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: The County failed to document reviews of 10 out of 14 monthly reports for the Emergency Rental Assistance program, risking inaccurate reporting.
  • Impacted Requirements: Compliance with reporting requirements under Title 2 U.S. Code of Federal Regulations § 200.303, which mandates effective internal controls for federal awards.
  • Recommended Follow-Up: Implement internal controls to ensure all federal program reports are compiled, reviewed, and documented before submission.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: Emergency Rental Assistance Assistance Listing Number: 21.023 Federal Award Identification Number and Year: ERAE0416 – 2021 Award Period: 2022 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Related to the reporting requirements of Emergency Rental Assistance 1 and Emergency Rental Assistance 2, monthly reports were due through June 30 of 2022 and quarterly reports were due for all of 2022. All reports submitted for a federal program should be properly compiled, then reviewed, prior to submission to ensure accurate reporting occurs. 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. There were also special provision requirements related to the accuracy of information provided for reallocations that relied on these reports, as the financial information certified as part of reallocation includes monthly expenditure and cumulative obligations levels, as described in the Treasury reallocation guidance. ERA 2 expenditures and obligations reported in quarterly reports by the grantee are inputs to Treasury’s ERA 2 reallocation expenditure and obligation ratios. The reallocation expenditure ratio determines whether the grantee is subject to involuntary reallocation due to an insufficient ratio and the amount of excess funds subject to recapture by Treasury. Condition: During our testing it was noted that, for 10 of the 14 reports selected for testing, the County was not able to provide any documentation of any review performed over the reports prior to submission of the reports. Questioned costs: None Context: 10 of the 14 reports selected for testing were missing documentation. Cause: The County reviewed the quarterly reports for the grant, but the County did not retain and formal documentation of review for the monthly reports. Effect: It is possible that the County could report incorrect information if an error is made in compiling the information since there is no control in place in some instances to ensure that errors are not being made prior to filing. Repeat finding: Yes, in relation to reporting requirements – 2021-007 Recommendation: We recommend the County implement internal controls to ensure that all reports for federal programs are compiled, properly reviewed, and that review be reasonably documented prior to submission of the reports or data. Views of responsible officials: There is no disagreement with the finding.

Corrective Action Plan

2022-005 – EMERGENCY RENTAL ASSISTANCE – REPORTING AND SPECIAL PROVISIONS U.S. Department of Treasury Emergency Rental Assistance Assistance Listing Number: 21.023 Direct Payment Award Period: 2022 Recommendation: We recommend the County implement internal controls to ensure that all reports for federal programs are compiled, properly reviewed, and that review be reasonably documented prior to submission of the reports or data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will continue to work with SLFRF program managers to understand and adhere to federal purchasing policies. Name of the contact person responsible for corrective action: Peter Skwira, Finance Director Planned completion date for corrective action plan: December 31, 2023

Categories

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

Other Findings in this Audit

  • 8698 2022-004
    Material Weakness Repeat
  • 8699 2022-006
    Material Weakness
  • 8700 2022-007
    Significant Deficiency
  • 8701 2022-009
    Significant Deficiency Repeat
  • 8703 2022-008
    Significant Deficiency
  • 8704 2022-010
    Significant Deficiency Repeat
  • 8705 2022-003
    Material Weakness Repeat
  • 8706 2022-006
    Material Weakness
  • 8707 2022-007
    Significant Deficiency
  • 8708 2022-007
    Significant Deficiency
  • 8709 2022-003
    Material Weakness Repeat
  • 8710 2022-006
    Material Weakness
  • 8711 2022-007
    Significant Deficiency
  • 585140 2022-004
    Material Weakness Repeat
  • 585141 2022-006
    Material Weakness
  • 585142 2022-007
    Significant Deficiency
  • 585143 2022-009
    Significant Deficiency Repeat
  • 585144 2022-005
    Material Weakness Repeat
  • 585145 2022-008
    Significant Deficiency
  • 585146 2022-010
    Significant Deficiency Repeat
  • 585147 2022-003
    Material Weakness Repeat
  • 585148 2022-006
    Material Weakness
  • 585149 2022-007
    Significant Deficiency
  • 585150 2022-007
    Significant Deficiency
  • 585151 2022-003
    Material Weakness Repeat
  • 585152 2022-006
    Material Weakness
  • 585153 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.81M
93.778 Medical Assistance Program $12.37M
93.563 Child Support Enforcement $7.36M
21.023 Emergency Rental Assistance Program $5.48M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3.49M
14.218 Community Development Block Grants/entitlement Grants $2.52M
93.558 Temporary Assistance for Needy Families $2.23M
14.239 Home Investment Partnerships Program $1.70M
93.667 Social Services Block Grant $1.59M
93.658 Foster Care_title IV-E $1.43M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.27M
14.231 Emergency Solutions Grant Program $1.11M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $900,623
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $676,596
93.575 Child Care and Development Block Grant $549,203
93.268 Immunization Cooperative Agreements $521,118
14.267 Continuum of Care Program $484,283
97.067 Homeland Security Grant Program $449,997
17.259 Wia Youth Activities $445,679
20.205 Highway Planning and Construction $346,191
93.069 Public Health Emergency Preparedness $291,085
93.994 Maternal and Child Health Services Block Grant to the States $281,482
97.042 Emergency Management Performance Grants $257,277
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $240,256
16.575 Crime Victim Assistance $217,301
93.659 Adoption Assistance $198,656
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $193,027
93.090 Guardianship Assistance $112,486
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $105,935
93.669 Child Abuse and Neglect State Grants $92,859
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $88,446
95.001 High Intensity Drug Trafficking Areas Program $79,776
93.590 Community-Based Child Abuse Prevention Grants $72,234
16.579 Edward Byrne Memorial Formula Grant Program $48,509
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $47,317
93.556 Promoting Safe and Stable Families $37,022
93.645 Stephanie Tubbs Jones Child Welfare Services Program $22,930
10.555 National School Lunch Program $19,662
97.012 Boating Safety Financial Assistance $18,149
17.278 Wia Dislocated Worker Formula Grants $15,972
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $14,590
10.553 School Breakfast Program $9,842
17.258 Wia Adult Program $9,006
45.310 Grants to States $8,250
16.922 Equitable Sharing Program $8,014
10.572 Wic Farmers' Market Nutrition Program (fmnp) $3,897
93.251 Early Hearing Detection and Intervention $3,350
20.616 National Priority Safety Programs $2,816
84.181 Special Education-Grants for Infants and Families $2,100
20.600 State and Community Highway Safety $1,725
93.070 Environmental Public Health and Emergency Response $1,130
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $300