Mason County Commission

During the course of our testing we identified payments that were made for the purpose of debt service. Specifically, we noted a check written to Ohio Valley Bank to payoff loan account ending #0223 and a check written to West Union Bank to payoff loan account ending #0010. During fiscal year 2023, amounts paid related to debt service totaled $383,544.78. The 2023 Compliance Supplement for AL#21.027 Coronavirus State and Local Fiscal Recovery Funds Section III.A.2 lists unallowable activities as the following: a. Offset a reduction in net tax revenue (applicable to states and territories) b. Deposits into pension funds (applicable to all recipients except Tribes) c. Debt service or replenishing financial reserves (e.g., “rainy day funds”) (applicable to all recipients) d. Satisfaction of settlements and judgments (applicable to all recipients) e. Programs, services, or capital expenditures that include a term or condition that undermines efforts to stop the spread of COVID-19 (applicable to all recipients) Questioned Costs: $383,544.78 Procedures were not in place to verify that disbursements aligned with allowable activities per the federal programs compliance supplement. The County’s use of funds deviated from allowable activities. Officials should contact the granting agency for AL#21.027 Coronavirus State and Local Fiscal Recovery Funds to come to a resolution regarding the questioned costs. Further we recommend the County implement controls that would prevent future noncompliance regarding allowable and unallowable activities. Repeat Finding: No Officials Response: The Commission will contact the granting agency and work on a resolution of the questioned expenses. The County will also implement controls to prevent future instances.