York County

Department of the U.S. Treasury AL #21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended June 30, 2025 Criteria: Federal regulations require that non-Federal entities verify that an entity is not excluded or disqualified prior to entering into a covered transaction. The County indicated it had developed procedures to verify through SAM.gov that all vendors are not suspended, debarred or excluded from receiving Federal dollars prior to payment of a claim. Condition and Context: During our procedures, we noted that four claims tested out of a population of five claims did not include verification through SAM.gov that the vendor was not suspended, debarred or excluded. For these four claims, we performed a verification through SAM.gov and noted none of the vendors were suspended, debarred or excluded. Cause: While the County indicated it had developed procedures to verify vendors were not suspended, debarred or excluded, its procedures lacked appropriate controls to ensure that these procedures had been implemented prior to the payment of a claim. Effect or Potential Effect: The lack of controls may result in noncompliance with Federal regulations by entering into a covered transaction with an entity who is suspended, debarred or excluded from receiving Federal funds. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: We recommend the Board of Commissioners of York County, Nebraska require documentation that a vendor has been verified through SAM.gov prior to the obligation of any federal funds. We further recommend that the County Clerk’s office review all claims submitted against federal funds to ensure the SAM.gov verification is attached to the request for payment. View of Responsible Officials: Management and governance agree with the finding. See attached Corrective Action Plan.

Department of the U.S. Treasury AL #21.027 – Coronavirus State and Local Fiscal Recovery Funds Grant Period Year Ended June 30, 2025 Criteria: The Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds issued by the U.S. Treasury requires the County to complete an annual Project and Expenditure Report to be filed by April 30. Internal controls should be in place to ensure that this reporting requirement is completed accurately and should include a review of each report completed by an individual knowledgeable in the requirements of the award who did not prepare the report. Such review should occur prior to report submission and should be documented. Condition and Context: The Project and Expenditure Report filed by April 30, 2025, reported total cumulative expenditures of $69,035 for Project 4185, however, $12,614 of that amount was not actually expended during the period, only obligated. Cause: Presently, the County lacks written procedures to ensure that a detailed, documented review of the Project and Expenditure Report is performed by an individual other than the individual who prepared the report to ensure it is completed accurately and in accordance with the U.S. Treasury’s reporting requirements. Effect or Potential Effect: The lack of procedures resulted in inaccurate reporting in relation to the reporting requirements. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: We recommend York County, Nebraska develop written procedures requiring the review of the Project and Expenditure Report prior to its submission. This review should be performed by an individual within County management who is knowledgeable regarding the U.S. Treasury reporting requirements and should be documented upon completion. View of Responsible Officials: Management and governance agree with the finding. See attached Corrective Action Plan.

Criteria: Internal controls should be implemented to timely prevent or detect and correct errors in program budgets. Condition and Context: Equitable Sharing Program requirements stipulate that anticipated shared funds should not be budgeted. For the year ended June 30, 2021, the County budgeted anticipated shared funds. The County did identify the error during the year and did not expend more than funds already received, however, there was no formal amendment nor approval of the reduced budget. Cause: The County?s internal controls over budget preparation, review and approval were not adequate to prevent the approval of the budget error or to require correction upon identification of the error. Effect or Potential Effect: Failure to prevent or correct errors in budgeted disbursements may provide for actual disbursements in excess of funds received. Repeat Finding: The finding was not a repeat finding. Recommendation:. We recommend York County, Nebraska?s budget committee establish procedures requiring that budget requests which include the expenditure of federal awards also include supporting documentation of any compliance requirements related to the County?s budget. Management Response: Management agrees with the finding. See attached Corrective Action Plan.