Johnson County, WyomingLocal Government

2023-003 Material Weakness in Internal Control over Compliance Program: Local Assistance and Tribal Consistency (LATCF) Federal Assistance Listing Number: 21.032 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Grant year: 2023 Applicable Pass-through Entity: Direct Award Criteria or Specific Requirement The County should have a system in place to provide reasonable assurance that reports of Federal awards submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting or performance records, and are fairly presented in accordance with program requirements. Condition The County submitted the annual Obligation and Expenditure Report required by the grant for the calendar year 2022 reporting period. The County reported all expenditures under "Category 4: Other Governmental Purposes – Other Purposes Not Listed Above." There was no general ledger or other records used as the basis for the reports. Cause To efficiently and quickly complete the report, the County reported the expenditures as other governmental purposes rather than the more specific categories provided in the reporting template. Effect or Potential Effect The information provided to the Federal awarding agency was categorized incorrectly. Questioned Costs None Context There was only one annual report submitted during the time period tested. Identification of a Repeat Finding This is not a repeat finding. Recommendation The County should use general ledger reports or other reliable records to categorize the expenditures as outlined by the Report Guidance for the Local Assistance the Tribal Consistency Fund provided by the U.S. Department of Treasury dated September 2022. Views of Responsible Officials County staff will continue to increase their knowledge on proper reporting requirement including specific reporting requirement for the different types of grants received by the County and required reporting under each grant. Additionally, the County will implement review processes to ensure reports filed are done completely and accurately.

2021-004 Material Noncompliance and Material Weaknesses in Internal Control U. S. Department of Treasury Passed through the State of Wyoming ? State Land Investment Board, Wyoming Department of Health, and State of Wyoming ? Governor?s Office. 21.019 ? COVID-19 ? Coronavirus Relief Fund Pass through entity identifying number: Unknown Grant year: 2021 Criteria or specific requirement Allowable Costs and Activities ? Uniform Guidance requires that entities receiving federal awards establish and maintain internal control over the federal awards to provide reasonable assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Management has the responsibility to review and verify that expenditures of grant funds are adequately supported with documentation that the expenditure was an allowable cost and activity. Additionally, all grant computations should be checked for accuracy. These steps are critical to a strong system of internal control.Condition Due to the nature of this grant, the allowable costs under this grant were payroll costs and supplies that were used to respond to the COVID-19 public health emergency. The County gathered and summarized costs that were allowable costs of the grant. The information that was summarized contained mathematical errors and incorrect information. The County was therefore reimbursed for less costs than were incurred. Additionally, the County provided funds to charitable organizations that was not supported by documentation of allowable cost information. Cause The County lacked a process to review the computations of costs applied to the award to verify the accuracy of the amounts. The County also lacked a process to review supporting documentation of amounts provided to charitable organizations to determine the funds provided to the charitable organizations were in fact to be used for allowable costs as permitted by the grant award. Due to the public health emergency the County was responding quickly to the stressed organizations with a desire to keep the activities of the County and charitable organization?s strong during the pandemic. In order to provide the grant funds to the charitable organizations quickly, the County contacted the charities and obtained a verbal understanding that the charity has been impacted by the pandemic and agreed to an amount of the charity?s financial need. The charity was required to sign a certification that the funding was necessary to respond to COVID-19, however, the charity was not required to submit any supporting documentation to substantiate the expenses associated with the COVID-19 health emergency or related lost revenues. Effect or potential effect Without a process to review the amounts applied as allowable costs and activities used for the grant award, the County could have errors in the amounts determined as allowed resulting in over or under expenditures applied to the grant. Also, without supporting documentation to verify that the expenditures were related to COVID-19, there is question as to whether the money provided to charitable organizations was used by the organizations to cover expenditures and expenses associated with the COVID-19 health emergency or applicable charitable purpose. Questioned costs $182,292 identified as total costs of Charitable Relief award, which were not supported by documentation to substantiate the expenses. Context The audit procedures included reviewing the County?s one summary of expenditures applied to the grant agreement which uncovered the mathematical errors in the computations. The audit procedures included verification that grant management had reviewed the supporting documentation to substantiate the expenses. It was determined that the Charitable Relief portion of the grant was the only portion of the grant expenditures which had not been verified to supporting documentation.Identification of a repeat finding This is not a repeat finding. Recommendation The County should implement a two-step process for preparing and summarizing grant expenditures applied to a grant award. Having one individual prepare the information and a second individual review the information for accuracy, would be a best practice. Additionally, grant management should review supporting documentation of allowable activities and cost information applied to the grant award. Views of Responsible Officials See Corrective Action Plan.

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