(Taken directly from the auditor's report. Items in parentheses are my own statements)
10-2014- Significant Deficiency
Program: Operation Stonegarden Grant; CFDA Number 97.067 and U.S. Presidential Permit ; CFDA Number 20.205
Criteria: Entities that receive federal funding in excess of $500,000 are required to have a single audit to be submitted to the Federal Audit Clearinghouse within none months after the end of their fiscal year (We are late and the audit is obviously bad)
Condition: Financial statements are not being generated in a timely manner that allows an independent auditor to meet the necessary deadline as required by OMB Circular A-133 audits
Questioned Costs: No questioned costs were identified. In correspondence with the awarding agency it was noted this should be reported as a finding.
Context: In the course of the audit work performed and the need for clarification of specific issues, the awarding agencies were contacted. Each agency of the major programs discussed the need for timely submission of the audit package to the Federal Audit Clearinghouse as required by OMB Circular A-133.
Cause: The a county lacks a definitive close process and schedule for which adherence to on a routine basis would enable the timely generation of financial data that could be audited and allow for overages in time so a submission of the single audit could be completed in a timely manner.
Effect: Continued recurring lack of submission of the single audit to the Federal Audit Clearinghouse could cause grantors to be reluctant to enter into contracts with the County. (this could include a multitude of unrelated grantors such as Emergency Services grants. I have already heard from a Marfa Volunteer Firewoman that they are bracing for cancellation of grants)
Recommendation: A defined close schedule should be developed and adhered to that establishes a routine schedule based upon a set number of business days to accomplish specific tasks in order to effectively close and accounting period.
(So we may or may not be able to receive grant funding based on our lack of due diligence. That may should OK, but for EMS/Fire services, airport renovations, law enforcement dispatch services and things not having to do directly with the County departments involved it could be very serious as we can rarely afford to outlay cash all at once to pay for necessary items. )
Saturday, July 18, 2015
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