Finding Text
2023-005 Federal Awarding Agency: Department of Agriculture Program title and ALN: Forest Schools and Roads Cluster, Title III, ALN #10.666 Compliance requirements applicable to finding: Reporting Findings: Material Weakness in Internal Control over Compliance of Major Programs Questioned Costs: We are reporting no questioned costs. Criteria: The Secure Rural Schools and Community Self-Determination Act of 2000 requires a county receiving Title III funds to submit to the Secretary of Agriculture an annual certification by February 1 for each calendar year that funds have been spent for authorized uses. The report is required to certify all expenditures under the Title III program. Condition and Context: During our review of the annual certification for calendar year 2022, we found the report was submitted after required deadlines and incorrectly reported the total expenditures of Title III funds. According to the general ledger, the county spent $139,982 of Title III funds in calendar year 2022. The certification reported total expenditures of $139,932. While differences identified in the 2022 certification were not deemed material to the major program, it was the result of missing all expenditures from Fund 142, the Forest Title III Fund for the third year in a row and the combination of reporting errors resulted in material noncompliance with the program. Furthermore, recommendations made by auditors and plans of corrective action identified by management in prior years were insufficiently addressed. Cause: There is a lack of internal control over compliance related to reporting total Title III expenditures and the governing body in charge of ensuring compliance took limited responsibility in ensuring the report was submitted timely or accurately. Effect: The effect was noncompliance with reporting requirements. Recommendations: It is recommended that the county implement secondary review procedures prior to submission of the certification to the Secretary of Agriculture. We also recommend the responsible officials providing approval over the certification acquire proficiencies with the general ledger software and its reporting to identify accurate information for reporting and take responsibility to ensure timely completion of the reporting requirements. Views of responsible officials and planned corrective actions: A County Court member will meet with the contractor providing Title III services to discuss corrective action regarding timely completion of reporting and meeting reporting requirements.