GOVE COUNTY, KANSASLocal Government

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2020-004 ? MANAGEMENT OVERRIDE OF AN INTERNAL CONTROL OVER COMPLIANCE Department of the Treasury Coronavirus Relief Fund (CFDA No. 21.019) Criteria: Internal controls should be in place to ensure payment for federal program expenditures are approved by the governing body. Condition: Payment for two federal expenditures were not approved by the governing body. Context: During the testing of the Coronavirus Relief Fund expenditures, we determined that payment for two out of nine invoices tested were not approved by the County Commissioners. Our testing included $412,513 of the $555,043 expended. Of those tested, $77,937 were paid without governing body approval. Cause: The County Commissioners relied on the SPARK Committee to determine if the expenditures were allowable costs rather than having full oversight over the federal funds. Effect: Lack of governing body approval could have resulted in unallowed costs for this program. Recommendation: The County should adhere to the internal control over compliance that is implemented to ensure federal expenditures are allowable costs. Questioned Costs: None Views of Responsible Officials and Planned Corrective Actions: Management will adhere to internal controls and require all federal expenditures to be approved by the governing body.