County of Yavapai

Condition – During our audit, we noted the quarterly report ended March 31, 2025, was not filed. The expenditures for that period were included on the quarterly report ended June 30, 2025. Effect – The effect is the inaccurate and untimely reporting of expenditures in the proper quarter. Cause – The cause is a lack of timely information received from the subrecipient to complete the reporting in a timely manner. Criteria – According to 2 CFR §200.327, Financial Reporting, information must be collected with the frequency required by the terms and conditions of the Federal award. The contract requires the filing of the quarterly report within 45 days after the quarter-end. Recommendation – We recommend that Yavapai County establish a system of monitoring the WIOA Cluster reporting requirements and review the listing to verify that reports are filed timely. Management’s Response – Yavapai County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Improve Internal Controls over Reporting Name of contact person: Connie DeKemper Anticipated completion date: 12/31/2026 Condition – During our audit, we noted the quarterly report ended March 31, 2025, was not filed. The expenditures for that period were included on the quarterly report ended June 30, 2025. Response - The County is in the process of reviewing the terms of the subrecipient agreement for reporting and is developing systems for timely reporting.

Condition: During our audit, we noted that expenditures totaling $101,308 for FAL 93.354, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, were originally incorrectly listed on the schedule of expenditures of federal awards (SEFA) for FAL 93.069, Public Health Emergency Preparedness. Criteria: 2 CFR 200.508(b), Auditee Responsibilities, requires the auditee to prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with § 200.510. Cause and Effect: The cause is that lack of sufficient research in obtaining the appropriate federal assistance listing. The effect is the reporting of expenditures to an incorrect federal assistance listing. Recommendation: We recommend that Yavapai County develop internal controls that ensure the reporting of federal expenditures on the SEFA to the proper federal assistance listing number. Management’s Response: Yavapai County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Community Health Services will add a historical tracking mechanism for multi-year grants so that Assistance Lising numbers are tracked each year with explanations for changes. The tracking mechanism will be updated with contracts, contract amendments and purchase order releases. The tracking mechanism will feed into the annual Schedule of Expenditures of Federal Awards preparation spreadsheet that is provided to Yavapai County Finance.

Condition and context ? The reports for the quarter ended December 31, 2021, for the Coronavirus State and Local Fiscal Recovery Funds and the Health Center Program Cluster, and the report for the quarter ended September 30, 2021 for the Emergency Rental Assistance Program were issued a day after the deadline. In addition, for one of three programmatic reports tested for the Emergency Rental Assistance Program, the report showed the number of participating households and funds paid at zero for each when it should have been 512 households and $646,914 paid, respectively.Effect ? The effect of the reporting delays and incorrect information is that funding agencies are receiving incorrect or untimely information.Cause ? The cause is insufficient monitoring of reporting deadlines and inadequate review process of reports prior to their submittal.Criteria ? Federal regulations (2 CFR ?200.327) and the terms of the federal grants and contracts require that financial reports be filed in a timely manner and be supported by accurate documentation.Recommendation ? We recommend that the County improve controls over grant reporting that includes a process for identifying reporting requirements and monitoring the timely grant reporting. The system of control should include evaluating and documenting the reporting requirements of each grant and, assignment of both the employees responsible for preparation of the grant reports and a secondary employee assignment for overall monitoring of the timeliness of all grant reports.

Improve the Timeliness and Accuracy of Financial and Programmatic Reports21.023, 21.027 Emergency Rental Assistance Program, Coronavirus State and Local Fiscal Recovery FundsName of contact person: Connie DeKemper, Finance DirectorAnticipated completion date: 6/30/2023The Finance Department has corrected the issue of late reporting by working with the subrecipient and developing processes to accurately and timely report on the requirements of the grant. The US Treasury has developed an extension request process to allow for the collection of additional data due to changing requirements. The Finance Department has submitted its closeout data accurately and timely for the Emergency Rental Assistance Program correcting any reporting errors.Improve the Timeliness and Accuracy of Financial and Programmatic Reports93.224, 93.527 Health Center Program ClusterName of contact person: Tracy Pytlakowski, Community Health Center of Yavapai Finance ManagerAnticipated completion date: 4/17/2023The Community Health Center of Yavapai has corrected the late reporting of its federal funding by ensuring that reports are prepared as soon as possible so that unforeseen staffing absences do not affect the ability to meet timely reporting requirements. The quarterly report that was submitted late is no longer required by the grantor.

2021-102

Condition and context ? The County?s single audit reporting package for the fiscal year ended June 30, 2022, was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2023.Effect ? The effect of the untimely submission of the single audit reporting package is noncompliance with Federal requirements.Cause ? The cause was due to turnover within the County?s Finance Department.Criteria ? The terms of the County?s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditee?s fiscal year end.Recommendation ? We recommend that the County devote the necessary resources to the accounting function to meet its reporting obligations. Doing so will improve the timeliness of the County?s submittal to the Federal Audit Clearinghouse.

Improve the Timeliness of Filing the Annual Audit17.258, 17.259, 17.278, 20.205, 21.023, 21.027, 93.224, 93.527, 93.268 Workforce Investment Opportunities Act (WIOA) Cluster, Highway Planning and Construction, Emergency Rental Assistance Program, Coronavirus State and Local Fiscal Recovery Funds, Health Center Program Cluster, Immunization Cooperative AgreementsName of contact person: Connie DeKemper, Finance DirectorCompletion date: 06/30/2023The County?s Single Audit reporting package for the fiscal year ended June 30, 2022 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2023. The Finance Department has had significant turnover in the past 24 months. Due to this turnover, the prior year financial statements were delayed. This has contributed to the delay in the current year financial statement submission. The Finance Department continues to train staff and document the processes and procedures for accurate and timely submission of the financial statements.

2021-102

2021-102 Assistance Listings number and name: 21.023 COVID-19 Emergency Rental Assistance (ERA) Program Award number and year: 1505-0266, January 12, 2021 through December 31, 2021 Federal agency: U.S. Department of Treasury Compliance requirement: Reporting Questioned costs: N/A Condition?The County?s administration reported inaccurate program information to the federal agency even after it amended its quarterly reports when compared to underlying program records. Specifically, we tested the County?s amended April through June 2021 quarterly report, which contained the following inaccuracies: ? Understatements of $34,879, or 1.1 percent of the nearly $3.18 million of total program expenditures, of the amounts reported as approved and paid to participating households during the quarter. ? Overstatements of $789,984, or 24.8 percent of the nearly $3.18 million of total program expenditures, of the amounts reported as current quarter obligations and expenditures. ? An understatement of 14 applicants, or 5.6 percent of the program?s total 250 applicants, who represent the number of unique households that received their initial emergency rental assistance during the quarter. ? Overstatements averaging 3 applicants for various other report line items capturing details about the number of unique households that received emergency rental assistance during the quarter. In addition, the County?s administration incorrectly reported the entire amount of $2,385,720 that it passed through to its sole subrecipient, a State agency, during the quarter April through June 2021. It incorrectly reported this entire amount as administrative expenses; however, it should have reported amounts the State agency awarded to participating households as rent, utilities and home energy costs, and other housing costs in addition to the County?s and State agency?s administrative expenses. Effect?The County?s reporting inaccurate program information results in the federal agency being unable to rely on the reports to effectively monitor the County?s program administration, including its compliance with program requirements and ability to prevent and detect fraud, and to evaluate the program?s success. Cause?As described in finding 2021-101, the County?s administration did not perform the required monitoring of the State agency?s activities or of its compliance with the award terms and program requirements and had not developed written policies and procedures for performing monitoring procedures for its subrecipients. Consequently, the County did not obtain the State agency?s underlying program records to review financial and performance information prepared by the State agency to ensure the information reported in the County?s quarterly reports agreed to the State agency?s underlying program records prior to submitting the reports to the federal agency. Criteria?Federal law and guidance require the County to report accurate and complete program information to the federal agency. Accordingly, the County?s intergovernmental agreement with the State agency required it to provide the County with the required information, including the number of applications submitted and determined eligible to participate in the program; payments made to participating households by type, such as rent, utility or home energy assistance, etc.; the amount of assistance provided to participating households; and household income and other demographics. Further, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that the federal program is being managed in compliance with all applicable laws, regulations, and award terms (2 CFR ?200.303). Recommendations?The County?s administration should: 1. Report accurate and complete program information to the federal agency, ensuring the information reported agrees to underlying program records. 2. Develop and implement policies and procedures for monitoring its subrecipients by implementing corrective action on our recommendations in finding 2021-101 to ensure that its subrecipient complied with award terms and program requirements. The County?s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.

2021-102 COVID-19 Emergency Rental Assistance Program ? Reporting Name of contact person: Connie DeKemper, Finance Director Completion date: 01/31/2023 The County is in the process of correcting the errors identified in the finding. Actions taken by the County include 1) contacting the US Treasury to open the quarterly reports so they can be updated; 2) modifications to the reporting software developed by the US Treasury that allowed for correcting past quarterly information in future quarterly reporting windows; and, 3) the elimination of collection of some data when the reporting system was modified. The County has been in constant contact with the subrecipient in developing the data requirements needed to complete accurate reporting as well as reconcile between data reports. Due to system deficiencies of the subrecipient, the County is currently working with the subrecipient to accurately identify the beneficiary population for the closeout reporting that will be required in December 2022. The County has contracted with a consulting firm that specializes in federal grants to assist us with the collection of data from the State agency and reporting of the data accurately.