COUNTY OF KINGSLocal Government

Reference: 2021-002 Type of Finding: Significant Deficiency Category of Finding: Sub-Recipient Monitoring Federal Program Title & CFDA Number: 21.019 ? COVID-19 - Coronavirus Relief Fund Federal Agency: Department of the Treasury Passed-Through: California Department of Finance Award Number: 606125051 Award Year: 2021 Criteria: Per 24 CFR ? 200.331, when the County passes money through to subrecipients, the County must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information at the time of the subaward. Among other items, the County must include: - Subrecipient name - Subrecipient DUNS number - Federal award identification number - Federal award date - Subaward period of performance - Amount of federal funds obligated by the agreement - Total amount of the federal fund - Federal award project description - Name of federal awarding agency, pass-through entity, and contact information for awarding official - CFDA number and name - Identification that the project is for R&D - Indirect cost rate for the federal award Condition: While performing audit procedures over the County?s subrecipient monitoring, we noted that the County did not include all of the required information at the time of the subaward as required by federal guidelines. Cause: The County has not updated its contracts/agreements between the County and its subrecipients to comply with the changes made to the single audit requirements by the implementation of the Uniform Guidance. Effect: Continued noncompliance with federal guidelines can jeopardize future federal and state funding. Recommendation: We recommend that the County update their subrecipient contracts to include all of the requirements of 24 CFR ? 200.331.

Reference: 2020-002 Type of Finding: Significant Deficiency Category of Finding: Eligibility Federal Program Title & CFDA Number: Adoption Assistance Federal Agency: United States Department of Health and Human Services Passed-Through: State Department of Social Services Award Number: County 16 Award Year: Fiscal Year 2019/20 Criteria: The California Department of Social Services issues rates for the Adoption Assistance Program through All County Letters. In this particular case, the All County Letter changed the way rates were determined and required that all previously issued cases were updated to the new system and rates. Condition: Per testing performed over the County?s Adoption Assistance Program eligibility requirements, we noted that of the twenty-five cases selected for testing, one case was not utilizing the appropriate monthly rate. That case was utilizing the initial rate when services began and was not updated after a new All County Letter was issued by the State which required all previous cases to be updated. Cause: It appears that the late issuance of the All County Letter which stated an effective date months before the letter, caused the case to not be updated. The case noted consisted of an agreement entered into shortly after the new rate was effective, but prior to the All County Letter issued by the California Department of Social Services establishing guidelines for the new implementation. Effect: Because the incorrect rate was utilized, the County must now correct the situation by issuing a supplemental payment to the participant as they were paid a lower rate than they were entitled to based on the case factors. Questioned Costs: Unknown Recommendation: We recommend that the County perform review services over eligibility criteria as new guidance is issued and include older cases to ensure full compliance in addition to timely adoption.

Reference: 2019-001 Type of Finding: Significant Deficiency Category of Finding: Matching, Level of Effort, Earmarking Federal Program Title(s) & CFDA Number(s): 17.259 ? WIOA Youth Service Federal Agency: United States Department of Labor Passed-Through: State of California - Department of Employment Development Award Number: K8106180, K9110015 Award Year: Fiscal Year 2018/19 Criteria: Per Section 129(c)(4), WIOA, 128 Stat. 1510, not less than 20 percent of Youth Activity funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences. Condition: Per audit procedures performed over the Youth Activities Sub-Grants, it was noted of the total program expenses spent on Youth Activities, 13.38% was spent on paid and unpaid work experiences. Cause: Cause is due to the lack of total expenditures on Youth Activities for paid and unpaid work experiences not meeting the required 20 percent threshold. Effect: The County is out-of-compliance with the earmarking requirement of the WIOA in that 20 percent of Youth Activity Funds allocated were not expended on paid and unpaid work experiences. Questioned Costs: N/A Recommendations: We recommend that management review the expenditures and perform measures to ensure that earmarking expenditure requirements are being met throughout the year for each grant. Views of Responsible Officials and Planned Corrective Actions: Compliance with all Workforce Innovation and Opportunity Act (?WIOA?) Title I statutory guidelines, as well as state and federal directives, is critical to the operations of the Kings County Job Training Office. Internal reviews and monitoring of the Title I Youth subrecipient identified an issue with compliance and immediate action was taken during FY 2019/20. Specifically, the 20% work experience requirement was not being met, and the contract with the subrecipient was terminated mid-term. All Title I Youth operations were brought in-house as of January 16, 2019, and the program is currently meeting its 20% work experience requirements. Fiscal review to ensure program compliance has been scheduled on an ongoing monthly basis.

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