EIN: 356000178
UEI: GJLPX6EPJ1M7
Audited by: Indiana State Board of Accounts
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 24, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 24, 2027 (147 days from today).
What is a management decision? →FAC accepted this audit on July 24, 2025 — management decision was due January 24, 2026.
FAC accepted this audit on August 27, 2024 — management decision was due February 27, 2025.
FINDING 2023-001 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2023 Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Finding: Material Weakness INDIANA STATE BOARD OF ACCOUNTS 13 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Condition and Context The County was awarded $13,691,662 in State and Local Fiscal Recovery Funds (SLFRF) to respond to the COVID-19 pandemic. The Board of County Commissioners were placed in charge of the grant funds and ensuring compliance with the grant. To ensure SLFRF expenditures were allowable and adhered to the cost principles, the County established the following process: first, the expenses were preapproved by the County Administrator; next, the claim was prepared by the Board of County Commissioners' Executive Assistant or the County Administrator; then the claim was reviewed and approved for compliance with the grant requirements by a County Commissioner; finally, the County Auditor approved the expenditure for payment. All expenditures paid with SLFRF funds were selected for testing to determine if the internal control was operating effectively. For 3 of the 22 expenditures tested, a County Commissioner did not sign the claim. The claims not signed by a County Commissioner were in June (1) and December (2). The lack of internal controls was isolated to the three claims identified above. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause A proper system of internal controls, which would include segregation of key functions, was not consistently documented at the County. Effect Without the proper design or implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County review and strengthen its system of internal controls, to ensure appropriate reviews, approvals, and oversight are taking place. INDIANA STATE BOARD OF ACCOUNTS 14 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Show full finding ▾Hide full finding ▴FINDING 2023-001 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2023 Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Finding: Material Weakness INDIANA STATE BOARD OF ACCOUNTS 13 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Condition and Context The County was awarded $13,691,662 in State and Local Fiscal Recovery Funds (SLFRF) to respond to the COVID-19 pandemic. The Board of County Commissioners were placed in charge of the grant funds and ensuring compliance with the grant. To ensure SLFRF expenditures were allowable and adhered to the cost principles, the County established the following process: first, the expenses were preapproved by the County Administrator; next, the claim was prepared by the Board of County Commissioners' Executive Assistant or the County Administrator; then the claim was reviewed and approved for compliance with the grant requirements by a County Commissioner; finally, the County Auditor approved the expenditure for payment. All expenditures paid with SLFRF funds were selected for testing to determine if the internal control was operating effectively. For 3 of the 22 expenditures tested, a County Commissioner did not sign the claim. The claims not signed by a County Commissioner were in June (1) and December (2). The lack of internal controls was isolated to the three claims identified above. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause A proper system of internal controls, which would include segregation of key functions, was not consistently documented at the County. Effect Without the proper design or implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County review and strengthen its system of internal controls, to ensure appropriate reviews, approvals, and oversight are taking place. INDIANA STATE BOARD OF ACCOUNTS 14 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-001 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Summary of Finding: For 3 or 22 expenditures tested, a County Commissioner did not sign the claim. The claims not signed by a County Commissioner were in June (1) and December (2) Contact Person Responsible for Corrective Action: Linda Pruitt, County Auditor Contact Phone Number and Email Address: 765-342-1001, lpruitt@morgancounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Morgan County Commissioners adopted Ordinance No. 2023-10 which establishes internal control procedures related to the expenditure of ARPA funds. This ordinance requires all claims for disbursement of ARPA funds must be signed by a Commissioner. This ordinance took effect upon passage on April 17, 2023. Auditor and Commissioner’s staff have been reminded of this requirement. Anticipated Completion Date: Immediate
FINDING 2023-002 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Procurement and Suspension and Debarment Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2023 Compliance Requirement: Procurement and Suspension and Debarment Audit Finding: Material Weakness Condition and Context Prior to entering into subawards and covered transactions with federal award funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a nonprocurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List (EPL), collecting a certification from that vendor, or adding a clause or condition to the covered transaction with that vendor. Upon inquiry of the County in order to review the procedures in place for verifying that a vendor with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded, the County disclosed that there was not any procedure or internal control in place to verify that applicable vendors were not suspended or debarred from participation in federal programs prior to entering into a covered transaction. The lack of internal controls was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause The County, being unaware of the compliance requirement, had not designed or implemented a proper system of internal controls, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the County's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. INDIANA STATE BOARD OF ACCOUNTS 15 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Effect Without the proper implementation of an effectively designed system of internal controls, the County cannot ensure the contractors paid with federal funds are eligible to participate in federal programs. Any program funds used to pay contractors that have been suspended or debarred would be unallowable, and the funding agency could potentially recover them. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the County establish a proper system of internal controls and develop policies and procedures to ensure that all contractors that are paid $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal program before entering into any contracts. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Show full finding ▾Hide full finding ▴FINDING 2023-002 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Procurement and Suspension and Debarment Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2023 Compliance Requirement: Procurement and Suspension and Debarment Audit Finding: Material Weakness Condition and Context Prior to entering into subawards and covered transactions with federal award funds, recipients are required to verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded. "Covered transactions" include, but are not limited to, contracts for goods and services awarded under a nonprocurement transaction (i.e., grant agreement) that are expected to equal or exceed $25,000. The verification is to be done by checking the Excluded Parties List (EPL), collecting a certification from that vendor, or adding a clause or condition to the covered transaction with that vendor. Upon inquiry of the County in order to review the procedures in place for verifying that a vendor with which it plans to enter into a covered transaction is not suspended, debarred, or otherwise excluded, the County disclosed that there was not any procedure or internal control in place to verify that applicable vendors were not suspended or debarred from participation in federal programs prior to entering into a covered transaction. The lack of internal controls was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause The County, being unaware of the compliance requirement, had not designed or implemented a proper system of internal controls, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the County's management statements of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. INDIANA STATE BOARD OF ACCOUNTS 15 MORGAN COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Effect Without the proper implementation of an effectively designed system of internal controls, the County cannot ensure the contractors paid with federal funds are eligible to participate in federal programs. Any program funds used to pay contractors that have been suspended or debarred would be unallowable, and the funding agency could potentially recover them. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the County establish a proper system of internal controls and develop policies and procedures to ensure that all contractors that are paid $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal program before entering into any contracts. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2023-002 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds – Procurement and Suspension and Debarment. Summary of Finding: The County did not have any procedure or control in place to verify that applicable vendors were not suspended or debarred from participation in federal programs prior to entering into a covered transaction. Contact Person Responsible for Corrective Action: Linda Pruitt, County Auditor Contact Phone Number and Email Address: 765-342-1001, lpruitt@morgancounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County will now require vendors entering into subawards and covered transactions with federal award funds to file a Suspension and Debarment Certification with the County prior to the execution of contract and at the beginning of each subsequent year, prior to the 1st payment of the year. Anticipated Completion Date: Immediate
FAC accepted this audit on June 22, 2023 — management decision was due December 22, 2023.
FINDING 2022-001 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2022 Compliance Requirement: Reporting Audit Finding: Material Weakness Condition and Context The County had not properly implemented a system of internal controls, which would include appropriate segregation of duties that would likely be effective in preventing, or detecting and correcting, noncompliance. Recipients are required to submit quarterly or annually Project and Expenditure (P&E) Reports to the Department of the Treasury (Treasury). The reporting periods, as well as the respective due dates, are based upon type of recipient and its population, as well as the recipient's allocation amount. Information to be reported includes projects funded, expenditures, and contracts for the appropriate reporting period. The County was classified as a metropolitan county with a population below 250,000 residents that received an allocation of more than $10 million in Coronavirus State and Local Fiscal Recovery Funds funding. As such, the initial P&E report, covering three calendar quarters from March 3, 2021 to December 31, 2021, was required to be submitted to the Treasury by January 31, 2022. The subsequent quarterly reports were to cover one calendar quarter and must be submitted to the Treasury by the last day of the month following the end of the period covered. The County submitted four P&E reports during the audit period. The County had an internal control process in place for the completion and submission of the P&E report. The County Administrator prepared each P&E report and the Deputy County Auditor reviewed and approved the information before the report was submitted; however, the County Administrator could not provide audit evidence the review and approval process occurred before submission. The lack of internal controls was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause A proper system of internal controls was not implemented by management of the County, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the County's management of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the County implement a proper system of internal controls, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals, and oversight are taking place. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Show full finding ▾Hide full finding ▴FINDING 2022-001 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Federal Agency: Department of the Treasury Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Federal Award Number and Year (or Other Identifying Number): CY-2022 Compliance Requirement: Reporting Audit Finding: Material Weakness Condition and Context The County had not properly implemented a system of internal controls, which would include appropriate segregation of duties that would likely be effective in preventing, or detecting and correcting, noncompliance. Recipients are required to submit quarterly or annually Project and Expenditure (P&E) Reports to the Department of the Treasury (Treasury). The reporting periods, as well as the respective due dates, are based upon type of recipient and its population, as well as the recipient's allocation amount. Information to be reported includes projects funded, expenditures, and contracts for the appropriate reporting period. The County was classified as a metropolitan county with a population below 250,000 residents that received an allocation of more than $10 million in Coronavirus State and Local Fiscal Recovery Funds funding. As such, the initial P&E report, covering three calendar quarters from March 3, 2021 to December 31, 2021, was required to be submitted to the Treasury by January 31, 2022. The subsequent quarterly reports were to cover one calendar quarter and must be submitted to the Treasury by the last day of the month following the end of the period covered. The County submitted four P&E reports during the audit period. The County had an internal control process in place for the completion and submission of the P&E report. The County Administrator prepared each P&E report and the Deputy County Auditor reviewed and approved the information before the report was submitted; however, the County Administrator could not provide audit evidence the review and approval process occurred before submission. The lack of internal controls was a systemic issue throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause A proper system of internal controls was not implemented by management of the County, which would include segregation of key functions. Embedded within a properly designed and implemented internal control system should be internal controls consisting of policies and procedures. Policies reflect the County's management of what should be done to effect internal controls, and procedures should consist of actions that would implement these policies. Effect Without the proper implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system cannot be capable of effectively preventing, or detecting and correcting, material noncompliance. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the County implement a proper system of internal controls, including policies and procedures that would provide segregation of duties to ensure appropriate reviews, approvals, and oversight are taking place. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-001 Contact Person Responsible for Corrective Action: Linda Pruitt Contact Phone number: 765-342-1001 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Morgan County Commissioners adopted Ordinance No. 2023-10 which establishes internal control procedures related to the expenditure of ARPA funds. This ordinance also requires reports to be reviewed by the Auditor?s office prior to submission and a printed copy with the County Administrator?s signature and the County Auditor or Deputy Auditor?s signature shall be retained. This ordinance took effect upon passage on April 17, 2023. Anticipated Completion Date: Has already been corrected.
FAC accepted this audit on September 6, 2022 — management decision was due March 6, 2023.
FINDING 2021-001 Subject: Highway Planning and Construction Cluster - Procurement Federal Agency: Department of Transportation Federal Program: Highway Planning and Construction Assistance Listings Number: 20.205 Federal Award Numbers and Years (or Other Identifying Numbers): A249-18-L180081, A249-19-L190034, A249-20-L200021, A249-20-L200095 Pass-Through Entity: Indiana Department of Transportation Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the County to ensure compliance with requirements related to the grant agreement and the Procurement and Suspension and Debarment compliance requirement. The County did not retain all documentation provided to the Indiana Department of Transportation (INDOT) for the procurement of projects. Therefore, we were unable to determine that the procurement documentation provided to INDOT was complete and accurate. The County was reimbursed for four projects during the audit period. Two projects were initially selected for testing. The County was unable to provide the bid packets for one of these two projects. Further inquiry for procurement records with respect to the two remaining projects reimbursed, revealed that the County could not produce any records for one project and only partial records for the other project. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.318 state in part: "(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price." Cause Management had not established a system of internal control that would have ensured compliance with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Effect Without a system of internal control in place that operated effectively, and retain appropriate supporting documentation prevented the determination of the County's compliance with the Procurement and Suspension and Debarment compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish an effective system of internal control to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Show full finding ▾Hide full finding ▴FINDING 2021-001 Subject: Highway Planning and Construction Cluster - Procurement Federal Agency: Department of Transportation Federal Program: Highway Planning and Construction Assistance Listings Number: 20.205 Federal Award Numbers and Years (or Other Identifying Numbers): A249-18-L180081, A249-19-L190034, A249-20-L200021, A249-20-L200095 Pass-Through Entity: Indiana Department of Transportation Compliance Requirement: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the County to ensure compliance with requirements related to the grant agreement and the Procurement and Suspension and Debarment compliance requirement. The County did not retain all documentation provided to the Indiana Department of Transportation (INDOT) for the procurement of projects. Therefore, we were unable to determine that the procurement documentation provided to INDOT was complete and accurate. The County was reimbursed for four projects during the audit period. Two projects were initially selected for testing. The County was unable to provide the bid packets for one of these two projects. Further inquiry for procurement records with respect to the two remaining projects reimbursed, revealed that the County could not produce any records for one project and only partial records for the other project. The lack of effective internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.318 state in part: "(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price." Cause Management had not established a system of internal control that would have ensured compliance with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Effect Without a system of internal control in place that operated effectively, and retain appropriate supporting documentation prevented the determination of the County's compliance with the Procurement and Suspension and Debarment compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish an effective system of internal control to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2021-001 Contact Person Responsible for Corrective Action: Dan Bastin Contact Phone Number: 765-342-1001 Views of Responsible Official: Concur with finding Description of Corrective Action Plan County?s Management has been aware of the issues that stem from the previous Highway Department Supervisor?s over the past two decades. In the last two years, new Department Directors have been hired to replace the outgoing supervisors. The new County Engineer and County Superintendent have implemented numerous changes throughout the Highway Department to better maintain, track, and manage all information that affects the department. The LPA projects referenced above are legacy projects started under the prior County Engineer. Since the previous Engineer left and was replaced, the County has been awarded 11 additional LPA, Federally Funded awards. This includes 8 local bridges and 3 CCMG awards. Several of the deficiencies noted in the audit where identified with the new department heads. No transition or continuity plan had previously been developed to impart knowledge and familiarization of current projects or how information was stored. Several steps have been implemented since the referenced 4 projects have been awarded and reimbursed. One step of the newly implemented system that directly affects LPAs are how the RFPs are responded to. All submittals are required to be submitted electronically for ease of storage. Once all submittals are received, they are filed and stored on Cloud storage servers and backed up on County maintained servers. This redundancy will prevent all loss of critical backup information to validate all future compliance with the grant agreement requirements. Anticipated Completion Date: Immediate
FINDING 2021-002 Subject: BRIC: Building Resilient Infrastructure and Communities - Reporting Federal Agency: Department of Homeland Security Federal Program: BRIC: Building Resilient Infrastructure and Communities Assistance Listings Number: 97.047 Federal Award Number and Year (or Other Identifying Numbers): DHS-18MT-047-000-99 Pass-Through Entity: Indiana Department of Homeland Security Compliance Requirement: Reporting Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the County to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirement. The County had not established internal controls, which would include segregation of duties, related to the preparation and submission of the Quarterly Performance Report (Report). The Grant Administrator prepared and submitted the Report without any oversight or review process in place to prevent, or detect and correct, errors on the Report. Due to the lack of internal control, the "Status of Report" section of the Report was not completed for any of the reports submitted. The lack of internal of controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.328 states: "Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMBapproved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information." Cause Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective system of internal control enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the compliance requirement could have resulted in the loss of federal funds to the County. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish an effective system of internal control to ensure compliance and comply with the grant agreement and the Reporting compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Show full finding ▾Hide full finding ▴FINDING 2021-002 Subject: BRIC: Building Resilient Infrastructure and Communities - Reporting Federal Agency: Department of Homeland Security Federal Program: BRIC: Building Resilient Infrastructure and Communities Assistance Listings Number: 97.047 Federal Award Number and Year (or Other Identifying Numbers): DHS-18MT-047-000-99 Pass-Through Entity: Indiana Department of Homeland Security Compliance Requirement: Reporting Audit Findings: Material Weakness, Other Matters Condition and Context An effective internal control system was not in place at the County to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirement. The County had not established internal controls, which would include segregation of duties, related to the preparation and submission of the Quarterly Performance Report (Report). The Grant Administrator prepared and submitted the Report without any oversight or review process in place to prevent, or detect and correct, errors on the Report. Due to the lack of internal control, the "Status of Report" section of the Report was not completed for any of the reports submitted. The lack of internal of controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.328 states: "Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMBapproved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information." Cause Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective system of internal control enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the compliance requirement could have resulted in the loss of federal funds to the County. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish an effective system of internal control to ensure compliance and comply with the grant agreement and the Reporting compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2021-002 Contact Person Responsible for Corrective Action: Dan Bastin Contact Phone Number: 765-342-1001 Concur with finding Description of Corrective Action Plan: An internal control procedure will be put in place that includes review of reports by Grant Administrator, Kenny Hale; Morgan County Administrator, Josh Messmer; and proofreading and second review by Commissioners? Executive Assistant, Deb Verley. The Grant Administrator will correct any mistakes before submittal of quarterly reports and will insure compliance with the grant agreement as well as compliance with internal control procedures. Anticipated Completion Date: Immediate
FAC accepted this audit on November 16, 2021 — management decision was due May 16, 2022.
FAC accepted this audit on August 9, 2020 — management decision was due February 9, 2021.
FAC accepted this audit on October 28, 2018 — management decision was due April 28, 2019.
FAC accepted this audit on October 8, 2018 — management decision was due April 8, 2019.
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