Monroe County

Approval of Expenditure Allowability Finding Number: 2020-004 CFDA Number and Title: CFDA #21.019 COVID-19 Coronavirus Relief Fund Federal Award Identification Number / Year: 2020 Federal Agency: U.S. Department of Treasury Compliance Requirement: Allowable Activities and/or Cost Principles Pass-Through Entity: Ohio Office of Budget and Management Ohio Department of Education Repeat Finding from Prior Audit? No Significant Deficiency The department head signs or initials invoices/vouchers to indicate the expenditures are allowable activities/costs of the Coronavirus Relief Fund federal grant. Due to a breakdown in internal controls over disbursements, the department head did not sign or initial invoices/vouchers to indicate approval of 22% of expenditures tested from the Coronavirus Relief Fund grant. As a result, Coronavirus Relief Fund grant monies could be used for unallowable activities or unallowable costs. However, these expenditures were approved by the County Commissioners who are familiar with grant requirements which may help mitigate the risk of unallowable expenditures being made. The County should take the necessary steps to ensure that invoices/vouchers are reviewed and approved for expenditures to ensure they are allowable activities/allowable costs of the Coronavirus Relief Fund grant.

"See Schedule of Findings and Questioned Costs for chart/table" 2 CFR Subpart F ? 200.510(b) requires the auditee prepare a Schedule of Expenditures of Federal Awards (the Schedule) for the period covered by the County?s financial statements which must include the total federal awards expended as determined in accordance with ? 200.502. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502 Basis for determining Federal awards expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end of the audit period. (6) Include notes that describe the significant accounting policies used in preparing the schedule, and note whether or not the auditee has elected to use the 10 percent de minimis cost rate as covered in ? 200.414 Indirect (F&A) costs. The lack of effective controls over this compliance requirement resulted in the Schedule being misstated. The Schedule prepared by the County had the following errors: ? CFDA #10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program, expenditures were understated in the amount of $1,642; ? CFDA #10.665 Schools and Roads - Grants to States, the amount passed through to subrecipients was understated by $500; ? CFDA #10.766 Community Facilities Loans and Grants, expenditures were understated in the amount of $4,607; ? CFDA #14.228 Community Development Block Grant, expenditures were understated by $36,533; ? CFDA #14.239 Community Housing Impact and Preservation Program, expenditures were understated by $10,285; ? CFDA #15.226 Payment in Lieu of Taxes, expenditures were understated by $9,653; ? CFDA #20.205 Highway Planning and Construction, expenditures were overstated by $89,096; ? CFDA #20.509 Formula Grants for Rural Areas, expenditures were understated by $21,104; ? CFDA #20.933 National Infrastructure Investments, expenditures were understated by $19,932; ? CFDA # 90.404 Help America Vote Act - Election Security Grant, expenditures were understated by $23,843; ? CFDA #93.558 Temporary Assistance for Needy Families, the amount passed through to subrecipients was understated by $107,141 and expenditures were understated by $100; ? CFDA #93.658 Foster Care Title IV-E, expenditures were understated by $54,023; ? CFDA #93.659 Adoption Assistance Administration, expenditures were understated by $28,221; ? CFDA #93.667 Social Services Block Grant (passed through the Ohio Department of Job and Family Services), the amount passed through to subrecipients was understated by $21,145 and expenditures were understated by $157,355; ? CFDA #93.674 Chafee Foster Care Independence Program, expenditures were understated by $3,337; ? CFDA #93.778 Medical Assistance Program, the amount passed through to subrecipients was understated by $98,170 and expenditures were understated by $307,268; ? CFDA #97.036 Disaster Grants-Public Assistance, expenditures were understated by $184,673; and ? CFDA #97.042 Emergency Management Performance Grant, expenditures were understated by $27,246. Adjustments, to which management have agreed, are reflected in the accompanying Schedule. Noncompliance with grant requirements as well as errors and omissions on the Schedule of Expenditures of Federal Awards could have an adverse effect on future grant awards by the awarding agencies in addition to an inaccurate assessment of major federal programs that would be subjected to audit. County management should review all grant and loan award documents in order to execute policies and procedures which help ensure compliance with grant and loan requirements, including Schedule reporting requirements. The County should implement a system to track all federal expenditures and related information separately from other expenditures and report federal expenditures with proper support including, but not limited to, grant agreements, calculation of the expenditures, and any federal reporting requirements. This will help ensure the County is in compliance with grant and loan requirements, the Schedule is complete and accurate, and major federal programs are accurately identified for audit.

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