EIN: 416005834
UEI: H1ZCZJALMYY8
Audited by: BRADY MARTZ & ASSOCIATES PC
Oversight agency: 20 [Department of Transportation]
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Showing data from August 31, 2026 — the Federal Audit Clearinghouse is under high demand right now, so this couldn't be refreshed. This is the most recent data on record, not necessarily today's.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 2025. 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 March 30, 2026 (156 days ago).
What is a management decision? →Federal Program Highway Planning and Construction (AL 20.205) Special Test and Provisions Criteria UG states that in construction contracts, included is a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed. Furthermore, for a payroll to be certified, this is signed off by a representative of the contractor. Condition We noted a payroll was not submitted weekly. Also, this payroll was not certified by the contractor. Questioned Costs None Context The County was not in compliance with federal standards. Cause Oversight by County staff. Effect County failed to obtain wage certification and was not in compliance with federal requirements. Repeat Finding No Recommendation The County should implement procedures to ensure that federal wage standards are followed. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴Federal Program Highway Planning and Construction (AL 20.205) Special Test and Provisions Criteria UG states that in construction contracts, included is a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed. Furthermore, for a payroll to be certified, this is signed off by a representative of the contractor. Condition We noted a payroll was not submitted weekly. Also, this payroll was not certified by the contractor. Questioned Costs None Context The County was not in compliance with federal standards. Cause Oversight by County staff. Effect County failed to obtain wage certification and was not in compliance with federal requirements. Repeat Finding No Recommendation The County should implement procedures to ensure that federal wage standards are followed. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Contact Person – Bruce Starkey, County Administrator Corrective Action Plan – The County will implement procedures to ensure that federal wage rate standards are followed for federal grant purchases. Completion Date – 9/30/2025
Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Reporting Criteria Internal controls should be implemented to ensure accurate reporting. Condition The County reported 2025 expenditures as 2024 expenditures on an annual report. Questioned Costs None Context One report was submitted for the reporting of 2024 expenditures. We noted the expenditures reported did not match supporting documentation. Cause Oversight by County staff. Effect 2024 expenditures charged to the program were overstated. Repeat Finding Yes Recommendation The County should also ensure that all reports submitted should be reviewed by someone other than the preparer and this review should be documented. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Reporting Criteria Internal controls should be implemented to ensure accurate reporting. Condition The County reported 2025 expenditures as 2024 expenditures on an annual report. Questioned Costs None Context One report was submitted for the reporting of 2024 expenditures. We noted the expenditures reported did not match supporting documentation. Cause Oversight by County staff. Effect 2024 expenditures charged to the program were overstated. Repeat Finding Yes Recommendation The County should also ensure that all reports submitted should be reviewed by someone other than the preparer and this review should be documented. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Contact Person – Bruce Starkey, County Administrator Corrective Action Plan – The County will implement procedures to ensure accurate reporting. Completion Date – 9/30/2025
2023-002
Federal Program Medicaid Cluster (AL 93.778) Eligibility Criteria Uniform Guidance requires the County to ensure compliance over eligibility by having the proper documentation of income, citizenship, and social security numbers. This information is provided by the client on the application form for assistance. Condition The County was not able to provide an application for two case files selected for testing. Questioned Costs None Context 10 applications were selected for testing. Cause The original applications were not properly filed or categorized in the County case file system. Effect Errors could have been made in determining eligibility, since the source of the information, the application form was missing, and benefits might have been issued to clients who are not eligible. Repeat Finding Yes Recommendation The County should implement procedures to ensure all applications and other client information is properly filed and maintained in the County case files system. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴Federal Program Medicaid Cluster (AL 93.778) Eligibility Criteria Uniform Guidance requires the County to ensure compliance over eligibility by having the proper documentation of income, citizenship, and social security numbers. This information is provided by the client on the application form for assistance. Condition The County was not able to provide an application for two case files selected for testing. Questioned Costs None Context 10 applications were selected for testing. Cause The original applications were not properly filed or categorized in the County case file system. Effect Errors could have been made in determining eligibility, since the source of the information, the application form was missing, and benefits might have been issued to clients who are not eligible. Repeat Finding Yes Recommendation The County should implement procedures to ensure all applications and other client information is properly filed and maintained in the County case files system. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Contact Person – Bruce Starkey, County Administrator Corrective Action Plan – The County will review procedures over application filing. Completion Date – 9/30/2025
2023-003
FAC accepted this audit on September 26, 2024 — management decision was due March 26, 2025.
Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Activities Allowed or Unallowed, Allowable Costs, Reporting Criteria Federal reporting requirements require expenditures to be based on actual expenditures incurred. In addition, internal controls should be implemented over reporting to prevent errors on reports. Condition The County charged expenditures to the program based on budgeted expenditures, not actual expenditures. Questioned Costs $23,567 Context The program consisted of 121 transactions, of which 13 haphazard transactions were tested. There was only one (1) transaction of its type with this issue. This transaction is roughly 45% of the overall program expenditures. Cause The County created a budget spreadsheet of what they would charge to the program. The budgeted amount calculated was charged to the program. It was determined that these budgeted items did not agree to actual expenditures incurred. Effect Expenditures charged to the program were overstated. These budgeted expenditures were included in the financial reports submitted causing the financial report to be incorrect. Repeat Finding The County received a finding related to reporting in the prior year. Recommendation The County should implement procedures to ensure that expenditures charged to federal programs are based on actual expenditures. The County should also ensure that all reports submitted should be reviewed by someone other than the preparer and this review should be documented. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Activities Allowed or Unallowed, Allowable Costs, Reporting Criteria Federal reporting requirements require expenditures to be based on actual expenditures incurred. In addition, internal controls should be implemented over reporting to prevent errors on reports. Condition The County charged expenditures to the program based on budgeted expenditures, not actual expenditures. Questioned Costs $23,567 Context The program consisted of 121 transactions, of which 13 haphazard transactions were tested. There was only one (1) transaction of its type with this issue. This transaction is roughly 45% of the overall program expenditures. Cause The County created a budget spreadsheet of what they would charge to the program. The budgeted amount calculated was charged to the program. It was determined that these budgeted items did not agree to actual expenditures incurred. Effect Expenditures charged to the program were overstated. These budgeted expenditures were included in the financial reports submitted causing the financial report to be incorrect. Repeat Finding The County received a finding related to reporting in the prior year. Recommendation The County should implement procedures to ensure that expenditures charged to federal programs are based on actual expenditures. The County should also ensure that all reports submitted should be reviewed by someone other than the preparer and this review should be documented. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Contact Person – Bruce Starkey, County Administrator Corrective Action Plan – The County will review procedures to ensure expenditures charged to federal programs are supported with actual expenditures. Reports will undergo a review prior to submission. Completion Date – 9/30/2024
2022-002
Federal Program Medicaid Cluster (AL 93.778) Eligibility Criteria Uniform Guidance requires the County to ensure compliance over eligibility by having the proper documentation of income, citizenship, and social security numbers. This information is provided by the client on the application form for assistance. Condition The County was not able to provide an application for one case file selected for testing. Questioned Costs None Context A sample 40 case files were selected for testing. The County was unable to provide the original application for one case file due to filing errors. The information entered into METS (State System) by the case worker from the original application was verified with government databases in the METS system. Cause The original application was not properly filed or categorized in the County case file system. Effect Errors could have been made in determining eligibility, since the source of the information, the application form was missing, and benefits might have been issued to clients who are not eligible. Repeat Finding No Recommendation The County should implement procedures to ensure all applications and other client information is properly filed and maintained in the County case files system. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴Federal Program Medicaid Cluster (AL 93.778) Eligibility Criteria Uniform Guidance requires the County to ensure compliance over eligibility by having the proper documentation of income, citizenship, and social security numbers. This information is provided by the client on the application form for assistance. Condition The County was not able to provide an application for one case file selected for testing. Questioned Costs None Context A sample 40 case files were selected for testing. The County was unable to provide the original application for one case file due to filing errors. The information entered into METS (State System) by the case worker from the original application was verified with government databases in the METS system. Cause The original application was not properly filed or categorized in the County case file system. Effect Errors could have been made in determining eligibility, since the source of the information, the application form was missing, and benefits might have been issued to clients who are not eligible. Repeat Finding No Recommendation The County should implement procedures to ensure all applications and other client information is properly filed and maintained in the County case files system. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Contact Person – Bruce Starkey, County Administrator Corrective Action Plan – The County will review procedures over application filing. Completion Date – 9/30/2024
FAC accepted this audit on September 28, 2023 — management decision was due March 28, 2024.
2022-002 FINDING Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Reporting Criteria Federal reporting requirements require all reports to be completed accurately and to match the supporting accounting records. Condition The County had overreported expenditures on one report tested and underreported expenditures on another report tested. In addition, the report preparer had misunderstood two line items on the report and therefore reported the incorrect amounts for those line items. Questioned Costs None Context The County misstated expenditures on grant reports. Cause For one report, the report preparer had a keying error when adding up total expenditures and for the other report, the preparer did not match expenditures reported to the general ledger. The report was not reviewed by anyone other than the preparer. Effect The reports submitted were not accurate. Repeat Finding No Recommendation The County should implement procedures to ensure that reports are completed accurately, including ensuring reports match the supporting accounting records. For report line items that are unclear, the preparer should review the report guidance to ensure the correct amount is reported. Reports should also be reviewed by someone other than the preparer before the report is submitted. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴2022-002 FINDING Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Reporting Criteria Federal reporting requirements require all reports to be completed accurately and to match the supporting accounting records. Condition The County had overreported expenditures on one report tested and underreported expenditures on another report tested. In addition, the report preparer had misunderstood two line items on the report and therefore reported the incorrect amounts for those line items. Questioned Costs None Context The County misstated expenditures on grant reports. Cause For one report, the report preparer had a keying error when adding up total expenditures and for the other report, the preparer did not match expenditures reported to the general ledger. The report was not reviewed by anyone other than the preparer. Effect The reports submitted were not accurate. Repeat Finding No Recommendation The County should implement procedures to ensure that reports are completed accurately, including ensuring reports match the supporting accounting records. For report line items that are unclear, the preparer should review the report guidance to ensure the correct amount is reported. Reports should also be reviewed by someone other than the preparer before the report is submitted. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
2022-002 FINDING Contact Person ? CJ Holl, County Administrator Corrective Action Plan ? The County will implement procedures to ensure that reports are completed accurately, including ensuring reports match the supporting accounting records. Completion Date ? 9/30/2023
2022-003 FINDING Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Procurement, Suspension, Debarment Criteria Organizations must follow federal procurement standards as set out in 2 CFR section 200.318 through 200.326. For purchases that exceed $10,000, small purchase procedures must be followed including obtaining multiple quotes. Condition For an equipment purchase contract that exceeded $10,000, the County failed to obtain multiple quotes. Questioned Costs None Context The County was not in compliance with federal procurement standards. Cause Oversight by County staff. Effect County failed to obtain multiple quotes and was not in compliance with federal procurement requirements. Repeat Finding No Recommendation The County should implement procedures to ensure that federal procurement standards are followed for federal grant purchases. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
Show full finding ▾Hide full finding ▴2022-003 FINDING Federal Program Coronavirus State and Local Fiscal Recovery Funds (AL 21.027) Procurement, Suspension, Debarment Criteria Organizations must follow federal procurement standards as set out in 2 CFR section 200.318 through 200.326. For purchases that exceed $10,000, small purchase procedures must be followed including obtaining multiple quotes. Condition For an equipment purchase contract that exceeded $10,000, the County failed to obtain multiple quotes. Questioned Costs None Context The County was not in compliance with federal procurement standards. Cause Oversight by County staff. Effect County failed to obtain multiple quotes and was not in compliance with federal procurement requirements. Repeat Finding No Recommendation The County should implement procedures to ensure that federal procurement standards are followed for federal grant purchases. Views of Responsible Officials and Planned Corrective Actions The County agrees with the recommendation and will review its procedures.
2022-003 FINDING Contact Person ? CJ Holl, County Administrator Corrective Action Plan ? The County will implement procedures to ensure that federal procurement standards are followed for federal grant purchases. Completion Date ? Ongoing
FAC accepted this audit on December 19, 2022 — management decision was due June 19, 2023.
FAC accepted this audit on September 28, 2021 — management decision was due March 28, 2022.
The County did not document risk assessment procedures performed over its subrecipients. Award information, including CFDA number, was not provided to the subrecipients and there were no signed subrecipient agreements in place. Additionally, the County does not have documented policies and procedures for subrecipient monitoring in place. Questioned Costs: None. Context: Mahnomen County passed Coronavirus Relief funds to the Mahnomen Health Center, Norman County Public Health, and Headwaters Regional Development Commission (HRDC), all local governments familiar to the County. The County Administrator stated the subrecipients were familiar with the federal grant requirements due to receiving federal funds in the past. There were numerous radio ads and newspaper articles informing the public of Board Meetings where the Board discussed the CARES ACT funding available due to COVID-19. The County passed their own CARES ACT Plan and required recipients of funds passed through to HRDC to complete a certification form. The funds sent to Norman County and Mahnomen Health Center were identified by those entities as federal funds. The funds paid by HRDC were to local businesses, with the exception of a small administrative fee kept by HRDC. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Cause: Mahnomen County does not generally provide federal awards to subrecipients and, therefore, did not have policies and procedures in place for subrecipient monitoring activities. Additionally, the County was not aware of the full extent of requirements for subrecipient monitoring. Recommendation: We recommend the County review the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332 and identify responsibilities such as creating and maintaining proper documentation to meet the requirements of federal programs. Additionally, we recommend the County include all applicable requirements including providing the CFDA number in communications regarding the program to its subrecipients. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2020-002 Prior Year Finding Number: N/A Repeat Finding Since: N/A Subrecipient Monitoring Program: U.S. Department of Treasury?s COVID-19 ? Coronavirus Relief Fund (CFDA No. 21.019), Award No. SLT0016, 2020 Pass-Through Agency: Minnesota Management and Budget 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. Also, the County must comply with the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332, such as clearly identifying the award information to the subrecipient; evaluating the subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the award; and monitoring the activities of the subrecipient. Condition: The County did not document risk assessment procedures performed over its subrecipients. Award information, including CFDA number, was not provided to the subrecipients and there were no signed subrecipient agreements in place. Additionally, the County does not have documented policies and procedures for subrecipient monitoring in place. Questioned Costs: None. Context: Mahnomen County passed Coronavirus Relief funds to the Mahnomen Health Center, Norman County Public Health, and Headwaters Regional Development Commission (HRDC), all local governments familiar to the County. The County Administrator stated the subrecipients were familiar with the federal grant requirements due to receiving federal funds in the past. There were numerous radio ads and newspaper articles informing the public of Board Meetings where the Board discussed the CARES ACT funding available due to COVID-19. The County passed their own CARES ACT Plan and required recipients of funds passed through to HRDC to complete a certification form. The funds sent to Norman County and Mahnomen Health Center were identified by those entities as federal funds. The funds paid by HRDC were to local businesses, with the exception of a small administrative fee kept by HRDC. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Cause: Mahnomen County does not generally provide federal awards to subrecipients and, therefore, did not have policies and procedures in place for subrecipient monitoring activities. Additionally, the County was not aware of the full extent of requirements for subrecipient monitoring. Recommendation: We recommend the County review the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332 and identify responsibilities such as creating and maintaining proper documentation to meet the requirements of federal programs. Additionally, we recommend the County include all applicable requirements including providing the CFDA number in communications regarding the program to its subrecipients. View of Responsible Official: Acknowledged
Finding Number: 2020-002 Finding Title: Subrecipient Monitoring Program: Coronavirus Relief Fund (CFDA # 21.019) Name of Contact Person Responsible for Corrective Action: CJ Holl, County Administrator Corrective Action Planned: The county will implement a plan to monitor subrecipients to ensure compliance with federal regulations for all federal awards, including the pending ARP award usage. Anticipated Completion Date: August 2021. Will be monitored throughout 2021 as awards are granted and fund designated.
FAC accepted this audit on September 29, 2020 — management decision was due March 29, 2021.
FAC accepted this audit on August 11, 2019 — management decision was due February 11, 2020.
GSA_MIGRATION
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2017-001
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2017-002
FAC accepted this audit on September 24, 2018 — management decision was due March 24, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on September 21, 2017 — management decision was due March 21, 2018.
GSA_MIGRATION
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