BOONE COUNTY COMMISSION

Section III - Federal Award Findings and Questioned Costs Subrecipient Monitoring 2021-007 GENERAL INFORMATION: Grant Title: COVID-19 Coronavirus Relief Fund CFDA #: 21.019 Federal Agency: Department of the Treasury Pass-through Entity Number: CVRF-2020 Pass through Agency: West Virginia Office of the Governor CONDITION: We noted during our audit that the Boone County Commission failed to properly monitor subrecipients. Specifically, there was no assurance that the funds sent for reimbursement were expensed by the subrecipients. CRITERIA: Appendix XI of the 2 CFR Part 200 July 2021 Compliance Supplement states, in part: "Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f))?" QUESTIONED COSTS: $120,868 CONTEXT: $29,390 of overtime pay claimed by the subrecipient was requested for reimbursement although the expense was never incurred by the entity. Also, $91,478 of disbursements were made to local governments without the subrecipients activities being monitored to ensure expenditures of the subaward were used for authorized purposes and in accordance with the grant guidelines. CAUSE: The Boone County Commission did not have procedures in place to ensure this subrecipient monitoring requirement was performed. EFFECT: Failure to properly monitor subrecipients increase the likelihood of errors or irregularities not being prevented or detected in a timely manner. Additionally, the risk of unallowable activities and unallowable costs is significantly increased. Management failed to comply with all applicable, material compliance requirements of the grant agreement. REPEAT FINDING: No RECOMMENDATION: The Boone County Commission is directed to review this regulation and comply with the provisions set forth therein. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: See Corrective Action Plan.

CORRECTIVE ACTION PLAN Federal Award Findings: Finding # 2021-007 Title of Finding Subrecipient Monitoring - Single Audit Contact Person Lee Ann Dale Anticipated Completion Date 06/30/2023 Corrective Action planned to be taken: The Boone County Commission will implement procedures to monitor subrecipient reimbursements.