MONITEAU COUNTY, MISSOURI

2024-004: Internal Control Over Schedule of Expenditures of Federal Awards Federal Grantor: U.S. Department of the Treasury Pass-Through Grantor: N/A Federal Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity Identifying Number: N/A Award Year: 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. Condition: The SEFA reported by the County in the 2024 annual budget document underreported expenditures of the Coronavirus State and Local Fiscal Recovery Funds program (ALN 21.027) by $1,184,214. Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for the year ended December 31, 2024. 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.

The SEFA information needed for this finding was from the 2025 budget. The 2025 budget can be amended up to 12/31/2025. Even though the ARPA funds in question were not reported on the SEFA page of the 2025 budget, it was reported within the budget within its own fund, which would show actual expenditures of the year ended December 31, 2024. Going forward the County Clerk will have the Treasurer review the SEFA report for accuracy.

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. 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: Before any reporting, the County Clerk will look for advisement on how to properly report the SEFA.

Management's Response: Before any reporting, the County Clerk will look for advisement on how to properly report the SEFA.