Navajo County June 30, 2006 Single Audit Report Highlights

Office Of The Auditor General

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• Publié par: Voeg
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• Langue: English

Extrait

Navajo County
REPORT The County Needs ToHIGHLIGHTS
SINGLE AUDIT Improve Controls over Its
Subject Accounting Records
Navajo County spent $5.3
million of federal monies in
fiscal year 2006 for 32
The Board of Supervisors depends on year-end accruals or prior year auditprograms. The largest federal
accurate information to fulfill its oversight adjustments and did not always properlygrants were for homeland
security, general government responsibility. Additionally, the County classify financial transactions in its
purposes, child support must issue accurate and timely financial accounting records. Additionally, the
enforcement, health services, statements to ensure compliance with County did not establish adequate internal
and housing. In return, the
audit requirements imposed by federal controls over its capital assets orCounty must be accountable
and state laws and regulations, grant transactions of its employee benefitsfor its use of federal and local
monies, maintain strong contracts, and long-term debt covenants. health insurance trust fund.
internal controls, and comply To achieve this objective, the County must
with federal program ensure that financial transactions are As a result of these deficiencies, we
requirements. As the accurately recorded in its accounting issued a disclaimer of opinion on theauditors, our job is to
records. County’s financial statements anddetermine whether the
Schedule of Expenditures of FederalCounty has met its
responsibilities. During fiscal year 2006, the County did Awards (SEFA) for the year ended
not adjust its accounting records for June 30, 2006.
Our Conclusion
The County did not maintain
adequate internal controls
over financial reporting. As a The County Spent $5.3result, the auditors were
unable to express an opinion Million in Federal Awardson Navajo County’s Schedule
of Expenditures of Federal
Awards. For our compliance
audit of federal programs,
auditors noted 9 material
The County spent $5.3 million of federal Equipment Support Program andinternal control weaknesses
monies this past year for 32 programs. Homeland Security Grant Program. Thisand 8 instances of material
The U.S. Department of Health and cluster is designed to enhance thenoncompliance for the major
Human Services, U.S. Department of County’s ability to prepare, prevent,federal programs tested. See
pages 1 through 3 for further Homeland Security, U respond to, and recover from terrorist
information. Agriculture, and the U attacks and other disasters.
the Interior were the four largest federal
grantors with $3.8 million of program Expenditures from the U.S. Department of
expenditures. Health and Human Services programs
included approximately $728,000 for the
Expenditures from the U.S. Department Child Support Enforcement program. This
of Homeland Security programs included program is designed to enforce the2006 approximately $923,000 for the support obligations owed by absent
Homeland Security Grant Program parents, locate absent parents, and
Year Ended June 30, 2006 Cluster: State Domestic Preparedness establish paternity.Expenditures from the U.S. Department of Federal Expenditures by Awarding Agency
the Interior included approximately Totaling $5.3 Million
$744,000 for the Payments in Lieu of Taxes Fiscal Year 2006
program. This program is designed to (In Thousands)
compensate local taxing units for the loss
of taxes from federally owned and acquired EducationHealth and Housing and
lands and is used for general government $352Human Urban
purposes. Services Development
$1,356 $499
Expenditures from the U.S. Department of
Agriculture programs included
Otherapproximately $438,000 for the Emergency
$599Watershed Protection Program. This Homeland
program is designed to assist in Security
$923 implementing emergency recovery
Interiormeasures for natural disasters that cause a
$754
Agriculturesudden impairment of a watershed.
$810
The County Did Not Always
Comply with Federal
Compliance Requirements
(Circular), requires that an audit beAuditors identified and tested seven federal
completed and the single audit reportingprograms under the guidelines established
package be submitted within 9 months afterby the Single Audit Act. The federal programs
fiscal year-end. However, the Countytested were the Special Supplemental
submitted its Single Audit Reporting PackageNutrition Program for Women, Infants, and
over 15 months late. In addition, the CircularChildren; Emergency Watershed Protection
requires that federal awards be separatelyProgram; Community Development Block
identified in the accounting records andGrants/State’s Program; Payments in Lieu of
properly reported on the SEFA. However, theTaxes; Centers for Disease Control and
County did not have adequate internalPrevention—Investigations and Technical
controls for separately identifying andAssistance; Child Support Enforcement; and
recording federal awards in its accountingHomeland Security Grant Program Cluster.
system and preparing a complete andAudit tests included evaluating the County’s
accurate SEFA.compliance with each program’s federal
regulations generally related to expending,
determining eligibility, managing equipment Administrative Requirements
and real property, procurement, vendor
suspension and debarment, reporting, and Federal program administrative requirements
special tests and provisions. Auditors noted require grantees to maintain its accounting
the following internal control weaknesses and records in a manner consistent with U.S.
instances of noncompliance. generally accepted accounting principles.
However, the County did not record year-end
OMB A-1133 Requirements accruals by individual fund in its accounting
system and supporting records.
Consequently, beginning and ending fundThe Office of Management and Budget
balances, year-end accruals, and revenuesCircular A-133, Audits of States, Local
and expenditures were indeterminable. Governments, and Non-Profit Organizations
page2z
z
z
z
Activities Allowed or Unallowed, Procurement and Suspension and
Allowable Costs/Cost Principles, and Debarment
RReeppoorrttiinngg
The County did not obtain the required
suspension and debarment certificationsFor the Special Supplemental Nutrition
from the vendors it contracted with to provideProgram for Women, Infants, and Children, the
goods and services for the EmergencyCounty did not have adequate policies and
Watershed Protection Program and theprocedures for ensuring program expenditures
Homeland Security Grant Program Cluster. Inreported on monthly reimbursement requests
addition, the County did not have adequatewere proper and the reports were submitted to
internal controls to ensure that competitivethe pass-through grantor in a timely manner. In
purchasing procedures were established andaddition, for the Centers for Disease Control
followed for the Community Developmentand Prevention—Investigations and Technical
Block Grants/State’s Program and theAssistance program, the County did not
Homeland Security Grant Program Cluster.ensure that amounts charged to the program
were adequately supported by documentation,
properly approved, and allowed. As a result, Special Tests and Provisions and
questioned costs totaling $5,739 were Reporting
reported for this program.
The County did not have adequate internal
Eligibility controls to ensure that environmental reviews
of contractors were performed as required
For the Special Supplemental Nutrition under the Community Development Block
Program for Women, Infants, and Children, the Grants/State’s Program. In addition, the
County did not have adequate internal controls County did not ensure that all child support
to ensure that all necessary eligibility enforcement case files contained evidence
information and documentation was that enforcement of medical support was
maintained and that program benefits were pursued with the noncustodial parent. The
terminated when participants became County also did not establish adequate
ineligible. policies and procedures to ensure monthly
financial reports for this program were
submitted in a timely manner.Equipment and Real Property
Management
The County did not have adequate internal
control policies and procedures for ensuring
that its capital assets were properly valued, Single Audit Fact Sheet
supported by records, and accurately reported
in the financial statements in accordance with Six material weaknesses in
generally accepted accounting principles. financial reporting internal controls
Therefore, the County was unable to provide were noted.
Twelve weaknesses in federalauditors with a complete listing of capital
compliance internal controls, nineassets purchased with current and prior year
of which were material internalfederal monies. As a result, the County’s
control weaknesses.procedures were inadequate to comply with
Twelve violations of federalthe equipment and real property management
compliance requirements, eight ofrequirements for the Special Supplemental
which were material
Nutrition Program for Women, Infants, and noncompliance.
Children; Community Development Block Program costs totaling $5,739
Grants/State’s Program; Centers for Disease were questioned as a result of the
Control and Prevention—Investigations and audi