COUNTY OF SULLIVANLocal Government

COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Passed through the Pennsylvania Department of State; Pennsylvania Department of Agriculture, Grant Period - Year Ended December 31, 2024. See finding 2024-001. – listed below. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: Uniform Guidance requires the County to monitor federal receipts and disbursements and to prepare accurate reports.Condition: The County did not complete a schedule of expenditures of federal awards (SEFA). Questioned Costs: None. Perspective Information: Not applicable. Effect: The draft of the SEFA is prepared by the external auditor. Cause: The County did not follow its procedures for the preparation of the SEFA. Identification of Repeat Findings: 2023-001. Recommendation: Management should follow its policy and prepare the SEFA. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County’s corrective action plan.

COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027, Passed through the Pennsylvania Department of Agriculture, Grant Period - Year ended December 31, 2024. Criteria: Title 2 CFR Section 200.214 of the Uniform Guidance subjects nonfederal entities to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The District did not verify the parties were not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs prior to awarding contracts. Questioned Costs: None. Perspective Information: Not applicable. Effect: Contracts under the federal program may improperly be awarded to excluded or ineligible parties. Cause: The District Manager was not aware of the District’s responsibility to verify that parties were not suspended or debarred. Identification of Repeat Findings: Not applicable. Recommendation: The District should apply the guidance in section 200.214 of the Uniform Guidance in determining whether parties are excluded or ineligible for participation in Federal programs. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County’s corrective action plan.

COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027, Passed through the Pennsylvania Department of Agriculture, Grant Period - Year ended December 31, 2024. Criteria: Per review of the State and Local Fiscal Recovery Funds compliance and reporting of guidance the auditee is responsible for having a system of internal control over reporting to ensure accurate and timely filing. Condition: The District did not document review and approval of program quarterly reports for the entire year, in addition to failing to file before the prescribed due date. Questioned Costs: None. Perspective Information: All quarterly reports were not reviewed and filed late. Effect: District is not in compliance with the reporting guidance. Cause: The District did not document review and approval of quarterly report submissions, and did not timely file reports. Identification of Repeat Findings: Not applicable. Recommendation: Management should implement a system of controls over reporting of federal funding. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County’s corrective action plan.

Community Development Block Grant - Assistance Listing No. 14.228; Passed through the Pennsylvania Department of Economic Development, Grant Period - Year Ended December 31, 2022. COVID-19 Community Development Block Grant - Assistance Listing No. 14.228; Passed through the Pennsylvania Department of Economic Development Grant Period - Year Ended December 31, 2023. COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Passed through the Pennsylvania Department of State, Grant Period - Year Ended December 31, 2023. See finding 2023-001 – listed below. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: Uniform Guidance requires the County to monitor federal receipts and disbursements and to prepare accurate reports. Condition: The County did not complete a schedule of expenditures of federal awards (SEFA). Questioned Costs: None. Perspective Information: Not applicable. Effect: The draft of the SEFA is prepared by the external auditor. Cause: The County did not follow its procedures for the preparation of the SEFA. Identification of Repeat Findings: 2022-001. Recommendation: Management should follow its policy and prepare the SEFA. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County’s corrective action plan.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: Uniform Guidance requires the County to monitor federal receipts and disbursements and to prepare accurate reports. Condition: The County did not complete a schedule of expenditures of federal awards (SEFA). Questioned Costs: None. Perspective Information: Not applicable. Effect: The draft of the SEFA is prepared by the external auditor. Cause: The County did not follow its procedures for the preparation of the SEFA. Identification of Repeat Findings: 2021-001. Recommendation: Management should follow its policy and prepare the SEFA. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County's corrective action plan.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2021-013 Community Development Block Grant - AL No. 14.228; Passed through from Pennsylvania Department of Economic Development, grant period - year ended December 31, 2021. Criteria: The 2021 Compliance Supplement (2 CFR Part 200, section 4- 20.001-4 - Wage Requirements Cross Cutting Section) states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326)? This requires the program administrator to monitor and receive the certified weekly payrolls on a weekly /timely basis. The County was not in compliance with the requirements noted above. Condition: The Program administrator did not receive timely payroll certifications as Questioned Costs: None. Perspective Information: Not applicable. Effect: Unallowed payroll costs could have been paid. Cause: Program Director and Program Administrator did not properly monitor the contractor?s weekly payroll submissions.Identification of Repeat Findings: Not applicable. Recommendation: Procedures should be implemented to ensure certified payrolls are received and reviewed timely. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan.

U.S. DEPARTMENT OF TREASURY 2021-014. COVID-19 Emergency Rental Assistance Program - AL No. 21.023; Passed through from Pennsylvania Department Health and Human Services, Grant Period - Year Ended December 31, 2021. See finding 2021-009. 2021-009. REVENUE RECOGNITION Criteria: Accounting standards require the recognition of revenue when eligibility requirements are met. Grants received before eligibility requirements are met should be reported as unearned revenue. Condition: The County recognized revenue from grants prior to incurring eligible expenditures. Questioned Costs: None. Perspective Information: Not applicable. Effect: Revenues and net position/fund balance were overstated and liabilities were understated. Cause: The County recorded grant revenue when received instead of when earned. Identification of Repeat Findings: 2020-010. Recommendation: Revenue should be recorded in accordance with accounting principles generally accepted in the United States of America. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan

U.S DEPARTMENT OF HOMELAND SECURITY 2021-015. Emergency Management Performance Grant - Program (EMPG) - AL No. 97.042; Passed through from Pennsylvania Emergency Management Agency, Grant Period - Year Ended December 31, 2021. See finding 2021-007. 2021-007. DUE FROM OTHER GOVERNMENTS (RECEIVABLES) Criteria: Accrual basis financial statements should include all amounts earned prior to year-end. Condition: The County did not record grant funding earned. Questioned Costs: None. Perspective Information: Not applicable. Effect: Due from other governments, net position/fund balance and revenues were understated. Cause: The County does not have a system to identify and record receivables at year-end. Identification of Repeat Findings: 2020-008. Recommendation: The County fiscal director and department heads should be evaluating grant funding received that could be related to prior year work/projects completed, relating to unrecorded amounts due from other governments. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan.

U.S DEPARTMENT OF HOMELAND SECURITY 2021-016 Disaster Grant Program - AL No. 97.036; Passed through from the Pennsylvania Emergency Management Agency, Grant Period - Year Ended December 31, 2021. See finding 2021-007. 2021-007. DUE FROM OTHER GOVERNMENTS (RECEIVABLES) Criteria: Accrual basis financial statements should include all amounts earned prior to year-end. Condition: The County did not record grant funding earned. Questioned Costs: None. Perspective Information: Not applicable. Effect: Due from other governments, net position/fund balance and revenues were understated. Cause: The County does not have a system to identify and record receivables at year-end. Identification of Repeat Findings: 2020-008. Recommendation: The County fiscal director and department heads should be evaluating grant funding received that could be related to prior year work/projects completed, relating to unrecorded amounts due from other governments. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan.

U.S. DEPARTMENT OF TREASURY 2020-016 Coronavirus Relief Fund - CFDA No. 21.019; Passed through from Pennsylvania Department of Community and Economic Development, Grant Period - Year Ended December 31, 2020. Criteria: OMB Guidance Section 200.328 monitoring and reporting program performance and Section 200.331 requirements for pass-through entities. Condition: County did not provide their subrecipients a subrecipient agreement. Additionally, no monitoring of these subrecipients was completed during the performance period. Questioned Costs: None. Perspective Information: Not applicable. Effect: The County is not in compliance with grant requirements for subawards. Cause: The County did not understand the compliance requirements. Identification of Repeat Findings: Not applicable. Recommendation: The County should ensure they are following the compliance requirements set forth by the OMB and the granting agency. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan

U.S. DEPARTMENT OF TREASURY 2020-017 Coronavirus Relief Fund - CFDA No. 21.019; Passed through from Pennsylvania Department of Community and Economic Development, Grant Period - Year Ended December 31, 2020. Criteria: County did not follow compliance requirements as set fourth in section 601(d) of the Social Security Act, as added by the Section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (Cares Act), which required equipment purchases had to be placed into service during the grant period. Condition: Equipment purchased using Coronavirus Relief Funds was not received/placed into service during the period of performance. Questioned Costs: $35,739. Perspective Information: Not applicable. Effect: The County is not in compliance with grant requirements. Cause: The County did not evaluate the compliance requirements for purchasing equipment using this program. Identification of Repeat Findings: Not applicable. Recommendation: The County should ensure they are following the compliance requirements set fourth by the Office of Management and Budget and the granting agency. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan

U.S DEPARTMENT OF HOMELAND SECURITY 2020-018 Emergency Management Performance Grant - Program (EMPG) - CFDA No. 97.042; Passed through from Pennsylvania Emergency Management Agency, Grant Period - Year Ended December 31, 2020. See finding 2020-008. 2020-008. DUE FROM OTHER GOVERNMENTS (RECEIVABLES) Criteria: Accrual basis financial statements should include all amounts earned prior to year-end. Condition: The County did not record grant funding earned. Questioned Costs: None. Perspective Information: Not applicable. Effect: Due from other governments, net position/fund balance and revenues were understated. Cause: The County does not have a system to identify and record receivables at year-end. Identification of Repeat Findings: Not applicable. Recommendation: The County fiscal director and department heads should be evaluating grant funding received that could be related to prior year work/projects completed, relating to unrecorded amounts due from other governments. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan.

U.S DEPARTMENT OF HOMELAND SECURITY 2020-019 Homeland Security Grant Program - CFDA No. 97.067; Passed through from the Pennsylvania Emergency Management Agency, Grant Period - Year Ended December 31, 2020. See finding 2020-003. 2020-003. CAPITAL ASSETS Criteria: Donated capital assets received by the County were not properly recorded as capital expenditures and intergovernmental revenues. Condition: The County did not record capital expenditures and intergovernmental revenues that were noncash transactions. Questioned Costs: None. Perspective Information: Not applicable. Effect: The financial statements were misstated. Cause: The County did not track and record capital assets provided to them on behalf of another government. Identification of Repeat Findings: Not applicable. Recommendation: Management should be tracking and recording non-cash transactions. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See the County?s corrective action plan.

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