Clark County

Information on the federal program: The County must establish and maintain effective internal control over federal awards. Criteria: Uniform Guidance requires the auditee to document internal controls over each federal program. Condition: During the walkthroughs of the County, we noted there is no formal documentation over internal controls with regards to federal awards in place. Cause: Adequate emphasis was not placed on the documentation of internal controls required under the Uniform Guidance. Effect: Not documenting internal controls over federal compliance requirements could result in the noncompliance of a major component of the federal program. Questioned Costs: Not applicable Context: During the audit of federal programs, we noted there was not adequate internal control documentation of each federal program. Identification of a Repeat Finding: This is a repeat finding from December 31, 2019, as 2019-003, and December 31, 2018, as 2018-003. Recommendation: We recommend that the County formally document internal controls over federal programs in accordance with the Uniform Guidance. Views of responsible officials: The County Clerk (Kelly Waples) is in the process of preparing the needed documentation to document their internal control structure in conformity with the Uniform Guidance. The Clerk expects to complete this by the next audit period. The County Clerk?s office can be reached at 660-727-3283.

Information on the federal program: The purpose of this fund is to provide payments to cover necessary expenditures incurred due to the public health emergency with respect to Coronavirus Disease 2019 (COVID-19), costs that were not accounted for in the government?s most recently approved budget as of March 27, 2020, and costs that were incurred during the period that begins on March 1, 2020, and ends on December 31, 2021. Criteria: The County must disburse Coronavirus Relief Funds based on qualified expenses as determined by Section 601 of the Social Security Act, as added by section 5001(a) of Division A of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Condition: During testing of expenses for the Fund, the following was noted: overpayment for unsupported expenses, payroll expenses paid when a facility was closed and also when payroll expenses were not documented as relating to Covid-19 efforts, unemployment expenses paid to employer that was not for increase in unemployment rates, architect fees paid for project determined not allowable, and labor fees paid based on estimate and not actual expenses. Cause: This is a new program for the County and there may have been some confusion as to what expenses are allowable or unallowable. Effect: Unallowable activity expenses paid with Coronavirus Relief Funds will require that funds be paid back to the federal government. Questioned Costs: The amount of questioned costs as a result of testing the Fund is $108,906. Context: During our testing, we noted expenses that did not appear to be allowable but were paid with Fund monies. Identification of a Repeat Finding: This is a new finding. Recommendation: We recommend that the County seek consulting advisory services for new federal programs to help determine allowable and unallowable expenses before payment is made. View of responsible officials: The County Clerk (Kelly Waples) acknowledged the CARES finding and will be consulting with a financial representative in the future for guidance on what is allowable and not allowable through federal funding.

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