Jackson County, MinnesotaLocal Government

2020-004 REPORTING Federal Agency: U. S. Department of Treasury Federal Program Title: COVID-19 Coronavirus Relief Fund CFDA Number: 21.019C Pass-Through Agency: Minnesota Department of Revenue Pass-Through Number(s): SLT0016 Award Period: March 1, 2020 ? December 1, 2020 Type of Finding: Significant Deficiency in Internal Control Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: For five of five monthly expenditure reports tested, the County did not retain documentation of review and approval prior to submitting to the pass-through agency. The sampling size was based on guidance from chapter 11 of the AICPA Audit Guide, Governmental Auditing Standards and Single Audits. Questioned Costs: None Cause: The program was a new source of funding and the County did not have proper internal control procedures in place. Effect: The County did not have controls in place to prevent or detect errors in the monthly expenditure reports. No errors or noncompliance were noted during our testing. Repeat Finding: No Recommendation: We recommend County management implement internal controls over federal grant reporting. Reports should be reviewed by someone other than the preparer prior to submitting to the pass-through agency to ensure accuracy and completeness. Documentation of the review and approval should be retained. View of Responsible Official: Concur.