EIN: 356000198
UEI: LFWJAV8M67B5
Audited by: INDIANA STATE BOARD OF ACCOUNTS
Oversight agency: 21 [Department of the Treasury]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 17, 2023. 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 February 17, 2024 (927 days ago).
What is a management decision? →FINDING 2022-005 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): FY2021 Compliance Requirement: Reporting Audit Finding: Material Weakness Condition and Context The County had not properly designed or 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 U.S. 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 included projected funded, expenditures, and contracts for the appropriate reporting period. The County was classified as a County with a population below 250,000 residents that received an allocation of less than $10 million in Coronavirus State and Local Fiscal Recovery Funds (SLFRF). As such, the initial P&E report, covering the period from March 3, 2021 to March 31, 2022, was required to be submitted to the Treasury by April 30, 2022. The subsequent annual reports are to cover one calendar year and must be submitted to the Treasury by April 30 each year. The County submitted an interim report and a P&E report during the audit period. The Auditor prepared and submitted both reports without a review or oversight process in place to prevent, or detect and correct, errors. 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 over reporting was not designed by management of the County, which would include segregation of key functions, to ensure the County provided the Treasury with complete and accurate information related to the SLFRF awards. 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. 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 management of the County design and 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 2022-005 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): FY2021 Compliance Requirement: Reporting Audit Finding: Material Weakness Condition and Context The County had not properly designed or 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 U.S. 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 included projected funded, expenditures, and contracts for the appropriate reporting period. The County was classified as a County with a population below 250,000 residents that received an allocation of less than $10 million in Coronavirus State and Local Fiscal Recovery Funds (SLFRF). As such, the initial P&E report, covering the period from March 3, 2021 to March 31, 2022, was required to be submitted to the Treasury by April 30, 2022. The subsequent annual reports are to cover one calendar year and must be submitted to the Treasury by April 30 each year. The County submitted an interim report and a P&E report during the audit period. The Auditor prepared and submitted both reports without a review or oversight process in place to prevent, or detect and correct, errors. 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 over reporting was not designed by management of the County, which would include segregation of key functions, to ensure the County provided the Treasury with complete and accurate information related to the SLFRF awards. 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. 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 management of the County design and 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 2022-005 Contact Person Responsible for Corrective Action: Rachel Oesterreich Contact Phone Number: 574-772-9105 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: When the Auditor completes quarterly/yearly reports for the ARPA Funds to the U.S. Department of the Treasury (Treasury), another individual will review and sign stating that the information submitted matches the funding that has been approved by the Board of Commissioners and Starke County Council. Anticipated Completion Date: December 31, 2023 Rachel Oesterreich Starke County Auditor
FAC accepted this audit on December 28, 2022 — management decision was due June 28, 2023.
FINDING 2021-004 Subject: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Agency: Department of Agriculture Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listings Number: 10.557 Federal Award Number and Year (or Other Identifying Number): 174-3: WIC330 Pass-Through Entity: Indiana State Department of Health Compliance Requirement: Eligibility 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 Eligibility compliance requirement. The County had not designed or implemented a system of internal control to ensure that income guidelines entered into the MIS System were accurate or that applicants were accurately determined to be eligible or ineligible for benefits. Additionally, the County did not retain any applicant supporting documentation to verify that the applicants were accurately determined to be eligible or ineligible for benefits through the WIC program. The lack of 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 200.334 states in part: "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Federal awarding agencies and pass-through entities must not impose any other record retention requirements upon non-Federal entities. . . ." 7 CFR 246.7(f)(2)(ii) states: "The processing timeframes shall begin when the individual visits the local agency during clinic office hours to make an oral or written request for Program benefits. To ensure that accurate records are kept of the date of such requests, the local agency shall, at the time of each request, record the applicant's name, address and the date. The remainder of the information necessary to determine eligibility shall be obtained by the time of certification. Medical data taken prior to certification may be used as provided in paragraph (g)(4) of this section." Cause Management had not developed a system of internal control that would have ensured compliance or that supporting documentation would have been maintained and made available for audit related to the Eligibility compliance requirement. Effect The failure to establish an effective system of internal control and retain appropriate supporting documentation prevented the determination of the County's compliance with the Eligibility compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish a system of internal control to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Eligibility 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 2021-004 Subject: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Agency: Department of Agriculture Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listings Number: 10.557 Federal Award Number and Year (or Other Identifying Number): 174-3: WIC330 Pass-Through Entity: Indiana State Department of Health Compliance Requirement: Eligibility 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 Eligibility compliance requirement. The County had not designed or implemented a system of internal control to ensure that income guidelines entered into the MIS System were accurate or that applicants were accurately determined to be eligible or ineligible for benefits. Additionally, the County did not retain any applicant supporting documentation to verify that the applicants were accurately determined to be eligible or ineligible for benefits through the WIC program. The lack of 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 200.334 states in part: "Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Federal awarding agencies and pass-through entities must not impose any other record retention requirements upon non-Federal entities. . . ." 7 CFR 246.7(f)(2)(ii) states: "The processing timeframes shall begin when the individual visits the local agency during clinic office hours to make an oral or written request for Program benefits. To ensure that accurate records are kept of the date of such requests, the local agency shall, at the time of each request, record the applicant's name, address and the date. The remainder of the information necessary to determine eligibility shall be obtained by the time of certification. Medical data taken prior to certification may be used as provided in paragraph (g)(4) of this section." Cause Management had not developed a system of internal control that would have ensured compliance or that supporting documentation would have been maintained and made available for audit related to the Eligibility compliance requirement. Effect The failure to establish an effective system of internal control and retain appropriate supporting documentation prevented the determination of the County's compliance with the Eligibility compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish a system of internal control to ensure that documentation will be maintained and made available for audit and comply with the grant agreement and the Eligibility 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 2021-004 (Auditor Assigned Reference Number) Contact Person Responsible for Corrective Action: Lisa Small, RN Coordinator Starke County WIC Contact Phone Number:574-772-2175 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Starke County WIC program will be working in conjunction with Indiana State WIC leaders/policy makers in regard to the findings of this audit. Starke County WIC program will forward the current audit findings for State WIC review and remain in compliance with any and all changes made to the current income eligibility guidelines and client eligibility. Anticipated Completion Date: December 31, 2022
FINDING 2021-005 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 Number and Year (or Other Identifying Number): DES # 1592155 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 in order to ensure compliance with procurement 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. The County was unable to provide four out of the six letters of interest that were reported in the LPA Selection Review Checklist for DES #1592155. The lack of internal controls and noncompliance were isolated to the DES #1592155 LPA Selection Review Checklist. 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(i) states: "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 developed a system of internal control that would have ensured compliance or that supporting documentation would have been maintained and made available for audit related to the Procurement and Suspension and Debarment compliance requirement. Effect The failure to establish an effective system of internal control and retain appropriate supporting documentation prevented the determination of the County's compliance with the procurement requirements of 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 2021-005 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 Number and Year (or Other Identifying Number): DES # 1592155 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 in order to ensure compliance with procurement 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. The County was unable to provide four out of the six letters of interest that were reported in the LPA Selection Review Checklist for DES #1592155. The lack of internal controls and noncompliance were isolated to the DES #1592155 LPA Selection Review Checklist. 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(i) states: "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 developed a system of internal control that would have ensured compliance or that supporting documentation would have been maintained and made available for audit related to the Procurement and Suspension and Debarment compliance requirement. Effect The failure to establish an effective system of internal control and retain appropriate supporting documentation prevented the determination of the County's compliance with the procurement requirements of 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 2021-005 (Auditor Assigned Reference Number) Contact Person Responsible for Corrective Action: Amanda Fentess Contact Phone Number: 574-772-3011 Views of Responsible Official: As the current Office Manager, the findings that were presented were before my record keeping. Description of Corrective Action Plan: As the new Office Manager going forward I maintain all of the documentation and make sure it is all labeled in a folder with all supporting documents from start to finish. Anticipated Completion Date: November 28, 2022 Amanda Fentress Starke County Highway Department
FAC accepted this audit on November 8, 2021 — management decision was due May 8, 2022.
FAC accepted this audit on September 1, 2020 — management decision was due March 1, 2021.
FINDING 2019-004 Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Reporting Federal Agency: Indiana Office of Community and Rural Affairs Federal Program: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii CFDA Number: 14.228 Federal Award Numbers and Years (or Other Identifying Numbers): A192-18-PF-16-108, A192-19-PL-18-016 Compliance Requirement: Reporting Audit Finding: Material Weakness 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 Grant Administrator prepared and submitted the semiannual reports without an oversight or review process by the County. The lack of control was a systemic issue, which occurred 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's management had not properly developed a system of internal controls to ensure compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective internal control system, which included segregation of duties, placed the County at risk of noncompliance with the grant agreement and the Reporting compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish a system of internal controls to ensure compliance 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 2019-004 Subject: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii - Reporting Federal Agency: Indiana Office of Community and Rural Affairs Federal Program: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii CFDA Number: 14.228 Federal Award Numbers and Years (or Other Identifying Numbers): A192-18-PF-16-108, A192-19-PL-18-016 Compliance Requirement: Reporting Audit Finding: Material Weakness 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 Grant Administrator prepared and submitted the semiannual reports without an oversight or review process by the County. The lack of control was a systemic issue, which occurred 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's management had not properly developed a system of internal controls to ensure compliance with the grant agreement and the Reporting compliance requirement. Effect The failure to establish an effective internal control system, which included segregation of duties, placed the County at risk of noncompliance with the grant agreement and the Reporting compliance requirement. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the County's management establish a system of internal controls to ensure compliance 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 2019-004 Contact Person Responsible for Corrective Action: Rachel Oesterreich, Starke County Auditor Contact Phone Number: 574-772-9101 Views of Responsible Official: I concur with the finding. Description of Corrective Action Plan: Proper internal controls have been put in place in regards to the requirements related to the grant agreement and the reporting compliance requirement. More than one person will now review semi-annual reports to ensure the accuracy of information that is prepared on the semi-annual reports created by the grant administrator. This will provide the proper oversight needed to be able to detect material misstatements or errors. Anticipated Completion Date: August 17, 2020
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