PIPESTONE COUNTYLocal Government

Material Weakness 2020-004 U.S. Department of Treasury Passed through State of Minnesota COVID-19 Coronavirus Relief Fund (CARES Act), Federal Financial Assistance Number 21.019C Subrecipient Monitoring Material Noncompliance and Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under Federal Financial Assistance Number 21.019C on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires subrecipient monitoring procedures to be performed by entities that pass federal dollars through to subrecipients. Condition: During the course of our engagement, we noted that the County did not perform subrecipient monitoring procedures in accordance with Uniform Guidance for funds passed from the County through to subrecipients. Cause: The County did not have adequate internal controls to ensure funds passed through to subrecipients are being monitored properly in accordance with requirements of Uniform Guidance. Effect: Subrecipient monitoring was not properly performed. Questioned Costs: None. Context/Sampling: No sampling was used. We examined procedures performed by the County noting no procedures related to subrecipient monitoring were performed. Repeat Finding from the Prior Year: No Recommendation: We recommend the County enhance internal controls to ensure it is properly performing subrecipient monitoring procedures related to funds passed through to subrecipients of the County. Views of Responsible Officials: There is no disagreement with the audit finding.