COOPER COUNTY, MISSOURILocal Government

2024-002: Internal Control Over Schedule of Expenditures of Federal Awards Federal Grantor: U.S. Department of the Interior (DOI), U.S. Department of the Treasury (Treasury), U.S. Department of Health and Human Services (HHS), and U.S. Department of Homeland Security (DHS) Pass-Through Grantor: Missouri Department of Public Safety, Missouri Department of Health and Senior Services Federal Assistance Listing Number: 15.226, 15.659, 21.027, 21.032, 93.323, 97.137 Program Title: Payments in Lieu of Taxes, National Wildlife Refuge Fund, Coronavirus State and Local Fiscal Recovery Funds, Local Assistance and Tribal Consistency Fund, Epidemiology and Laboratory Capacity for Infectious Diseases, State and Local Cybersecurity Grant Program Pass-through Entity Identifying Number: N/A Award Year: 2023 and 2024 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. This finding was noted in the prior audit for the year ending December 31, 2022 as item 2022-005. Condition: The SEFA reported by the County in the 2024 and 2025 annual budget documents contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2024 SEFA and amounts supported by underlying accounting records are summarized as follows: Discrepancies in amounts reported on the 2023 SEFA and amounts supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal controls over SEFA preparation, such as reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it had been prepared. The County believed that federal grant reimbursements did not have to be reported on the SEFA. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2024 and 2023. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.

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 auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards contained errors. The County's current internal controls over Schedule of Expenditures of Federal Awards reporting are not sufficient enough to ensure correct reporting. Errors include missing programs and assistance listing numbers, missing pass-through entity numbers, inaccurate reporting of expenditures per program, and missing awards passed through to subrecipients. Context: This finding is a repeat finding and was reported in the most previous audit period ended December 31, 2021. Cause: Management did not follow reporting requirements related to the Schedule of Expenditures of Federal Awards. Effect: Federal expenditures and other related informational data reported in the SEFA were incorrect. Recommendation: We recommend management develop internal controls over reporting and consult with outside accountants, if possible, to ensure an accurate SEFA is prepared. Management's Response: The County Clerk has worked with the County Treasurer using prior recommendations from earlier audits. We believe we have resolved these issues and should have no problems moving forward.

Federal Grantor: All Programs Pass-Through Grantor: All Programs Assistance Listing Number: All Programs Program Title: All Programs 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 auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards contained errors. The County's current internal controls over Schedule of Expenditures of Federal Awards reporting are not sufficient enough to ensure correct reporting. Errors include missing programs and assistance listing numbers, missing pass-through entity numbers, inaccurate reporting of expenditures per program, missing clusters of programs, and missing awards passed through to subrecipients. Context: This finding is a repeat finding and was reported in the most previous audit period ended December 31, 2020. Cause: Management did not follow reporting requirements related to the Schedule of Expenditures of Federal Awards. Effect: Federal expenditures and other related informational data reported in the SEFA were incorrect. Recommendation: We recommend management develop internal controls over reporting and consult with outside accountants, if possible, to ensure an accurate SEFA is prepared. Management's Response: The County Clerk's office will work with the Treasurer's office so that these stated recommendations and findings are resolved in future audits. Completion date is December 31, 2023.

Federal Grantor: All Programs Pass-Through Grantor: All Programs Federal CFDA Number: All Programs Program Title: All Programs Criteria: Title 2 U.S. Code of Federal Regulations Part 200 requires auditees to prepare an accurate Schedule of Expenditures of Federal Awards (SEFA) containing awards expended, CFDA title and number, award number, name of the Federal agency, and name of pass-through entity. Condition: The Schedule of Expenditures of Federal Awards (SEFA) contained errors. The County's current internal controls over SEFA reporting are not sufficient enough to ensure correct SEFA reporting. Cause: Management did not follow reporting requirements related to the Schedule of Expenditures of Federal Awards. Effect: Federal expenditures reported in the SEFA were incorrect. Context: This finding is a repeat finding and was reported in the previous audit as finding SA 2016-001. Recommendation: We recommend management develop internal controls over reporting and consult with outside accountants, if possible, to ensure an accurate SEFA is prepared. Management's Response: The County Clerk's office will work with the Treasurer's office so that these stated recommendations and findings are resolved in future audits.

Federal Grantor: U.S. Department of Treasury Pass-Through Grantor: Missouri State Treasurer's Office Federal CFDA Number: 21.019 Program Title: COVID-19 Coronavirus Relief Fund Award Year: 2020 Compliance Requirement: Allowable Costs Known Questioned Costs: $33,441 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 requires recipients of Federal awards to comply with laws, regulations, and provisions of contract or grant agreements related to each of its Federal programs. Records must support the disbursements made in accordance with guidance provided by the Department of the Treasury. Condition: During the audit, it was noted that the County made improper payments to a subrecipient in the amount of $33,441. Subrecipients of the Coronavirus Relief Fund applied for grant funding from the County on a cost reimbursement basis. Two grant applications were processed by the County which contained duplicate invoices, resulting in an overpayment for expenditures. Cause: Oversight. Effect: Applications for duplicate cost reimbursement requests were processed resulting in disallowed costs. Recommendation: We recommend management strengthen internal controls over review and approval of COVID-19 Coronavirus Relief Fund applications to ensure that duplicate payments are not made. It was noted that the County did discover the error after the end of the fiscal year, and as such, the funds have since been returned by the subrecipient. Management's Response: The County Commission will work to strengthen the internal controls that ultimately did identify the errors in the subrecipient's application. The Commission appreciates the acknowledgement by the auditor that the correction had been made prior to the audit.

GSA_MIGRATION

GSA_MIGRATION