EIN: 416005837
UEI: MC8CWEH6FPF8
Audited by: MINNESOTA OFFICE OF THE STATE AUDITOR
Oversight agency: 21 [Department of the Treasury]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 20, 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 March 20, 2024 (898 days ago).
What is a management decision? →The County overstated current period obligations and expenditures reported on the annual Project and Expenditures Report by $979,872. Questioned Costs: None. Context: The annual Project and Expenditure Report was required to be prepared for the year ending March 31, 2023. The cumulative project obligations and expenditures were accurately reported; however, current period obligations and expenditures were overstated by including amounts from the prior reporting period. Effect: Noncompliance with federal requirements. Cause: The County indicated that they had trouble entering the obligations and expenditures into the online reporting system. Amounts were entered as necessary to arrive at the correct cumulative balances recognizing that the current period amounts were inaccurate. Recommendation: We recommend that the County implement procedures to ensure federal program reports are completed accurately. Procedures should include consulting reporting instructions provided by grantor agencies and contacting the grantor agencies for assistance when necessary. View of Responsible Official: Acknowledge
Show full finding ▾Hide full finding ▴2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP3710; 2021 Pass-Through Agency: N/A Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. In addition, U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds that includes current period obligations and expenditures. Condition: The County overstated current period obligations and expenditures reported on the annual Project and Expenditures Report by $979,872. Questioned Costs: None. Context: The annual Project and Expenditure Report was required to be prepared for the year ending March 31, 2023. The cumulative project obligations and expenditures were accurately reported; however, current period obligations and expenditures were overstated by including amounts from the prior reporting period. Effect: Noncompliance with federal requirements. Cause: The County indicated that they had trouble entering the obligations and expenditures into the online reporting system. Amounts were entered as necessary to arrive at the correct cumulative balances recognizing that the current period amounts were inaccurate. Recommendation: We recommend that the County implement procedures to ensure federal program reports are completed accurately. Procedures should include consulting reporting instructions provided by grantor agencies and contacting the grantor agencies for assistance when necessary. View of Responsible Official: Acknowledge
Finding Number: 2022-002 Finding Title: Reporting Program: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Michael Forstner, Auditor/Treasurer Corrective Action Planned: Implement procedures to ensure federal program reports are completed accurately including consulting reporting instructions provided by grantor agencies and contacting the grantor agencies for assistance when necessary. Anticipated Completion Date: December 1, 2023
FAC accepted this audit on February 7, 2022 — management decision was due August 7, 2022.
The County has not developed written procurement policies that have the required components of a procurement policy in accordance with Title 2 U.S. Code of Federal Regulations ? 200.318, including provisions for written standards of conduct. Questioned Costs: None. Context: This issue was discovered during the audit of the Highway Planning and Construction program; however, it impacts federal programs entity-wide. Written policies and procedures that reflect the specific components of federal regulations improve controls to help ensure compliance with federal award requirements. Effect: Written policies and procedures that do not reflect specific Uniform Guidance procurement requirements could increase the risk of noncompliance with federal program requirements. Cause: The County has not adopted procurement procedures that comply with Uniform Guidance. Recommendation: We recommend the County develop and implement written policies and procedures that can be consistently applied by all staff which, when followed, ensures compliance with Uniform Guidance procurement requirements. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2020-003 Prior Year Finding Number: N/A Repeat Finding Since: N/A Uniform Guidance Written Procurement Policies and Procedures Programs: U.S. Department of Transportation?s Highway Planning and Construction (CFDA No. 20.205), Award No. 4620153, 2020 Pass-Through Agency: Minnesota Department of Transportation 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. In addition, Title 2 U.S. Code of Federal Regulations ? 200.318 states that the non-federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform with applicable federal law and the standards identified in this regulation. Condition: The County has not developed written procurement policies that have the required components of a procurement policy in accordance with Title 2 U.S. Code of Federal Regulations ? 200.318, including provisions for written standards of conduct. Questioned Costs: None. Context: This issue was discovered during the audit of the Highway Planning and Construction program; however, it impacts federal programs entity-wide. Written policies and procedures that reflect the specific components of federal regulations improve controls to help ensure compliance with federal award requirements. Effect: Written policies and procedures that do not reflect specific Uniform Guidance procurement requirements could increase the risk of noncompliance with federal program requirements. Cause: The County has not adopted procurement procedures that comply with Uniform Guidance. Recommendation: We recommend the County develop and implement written policies and procedures that can be consistently applied by all staff which, when followed, ensures compliance with Uniform Guidance procurement requirements. View of Responsible Official: Acknowledged
Finding Number: 2020-003 Finding Title: Uniform Guidance Written Procurement Policies and Procedures Program: Highway Planning and Construction (CFDA No. 20.205) Name of Contact Person Responsible for Corrective Action: Jessica Korte, Auditor Treasurer Corrective Action Planned: A Procurement Policy was developed towards the end of 2021, and approved by the Board 12/21/21. The Procurement policy will be reviewed at least annually to determine if any changes need to be made. Anticipated Completion Date: December 21, 2021
The documentation on file for one subrecipient tested did not include an agreement or other signed acknowledgement of program requirements to support the subrecipient?s understanding of the requirements before the funds were provided. Award information, including CFDA number, was not provided to the three subrecipients tested. Additionally, the County did not have sufficient monitoring procedures in place or documented policies and procedures for subrecipient monitoring. Questioned Costs: None. Context: Martin County passed grant funds to local governments, which the County is familiar with, who have been operating for many years. Funding was provided to one subrecipient after detailed listings of expenditures were submitted for review. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Also, the County cannot be assured that their subrecipients are administering federal awards in compliance with all applicable federal requirements. Cause: Martin 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 develop a policy to identify responsibilities for completing risk assessments and monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of subrecipient monitoring for federal programs. This would include documenting the monitoring procedures performed (such as on-site visits and review of the subrecipient?s audit findings) and any related follow-up on findings, and performing and documenting a risk assessment of subrecipients. In addition, we recommend the County include applicable award information, including CFDA numbers, in its communications to subrecipients regarding the program. Lastly, we recommend the County document procedures performed for monitoring the Coronavirus Relief Funds going forward. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2020-004 Prior Year Finding Number: N/A Repeat Finding Since: N/A Subrecipient Monitoring Program: U.S. Department of the Treasury?s 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 to the subrecipient; evaluating the subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the award; monitoring the activities of the subrecipient; and verifying the subrecipient is audited, if required. Condition: The documentation on file for one subrecipient tested did not include an agreement or other signed acknowledgement of program requirements to support the subrecipient?s understanding of the requirements before the funds were provided. Award information, including CFDA number, was not provided to the three subrecipients tested. Additionally, the County did not have sufficient monitoring procedures in place or documented policies and procedures for subrecipient monitoring. Questioned Costs: None. Context: Martin County passed grant funds to local governments, which the County is familiar with, who have been operating for many years. Funding was provided to one subrecipient after detailed listings of expenditures were submitted for review. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Also, the County cannot be assured that their subrecipients are administering federal awards in compliance with all applicable federal requirements. Cause: Martin 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 develop a policy to identify responsibilities for completing risk assessments and monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of subrecipient monitoring for federal programs. This would include documenting the monitoring procedures performed (such as on-site visits and review of the subrecipient?s audit findings) and any related follow-up on findings, and performing and documenting a risk assessment of subrecipients. In addition, we recommend the County include applicable award information, including CFDA numbers, in its communications to subrecipients regarding the program. Lastly, we recommend the County document procedures performed for monitoring the Coronavirus Relief Funds going forward. View of Responsible Official: Acknowledged
Finding Number: 2020-004 Finding Title: Subrecipient Monitoring Program: Coronavirus Relief Fund (CFDA No. 21.019) Name of Contact Person Responsible for Corrective Action: Jessica Korte, Auditor/Treasurer Corrective Action Planned: A Sub-Recipient Policy will be developed and reviewed annually with other policies with department heads to ensure the policies are still relevant and in accordance with Uniform Guidance, and any applicable laws, statutes, or rules. Anticipated Completion Date: February 15, 2022
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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