audit_findings: 5

This data as json

rowid	source	report_number	finding_number	muni_id	state	entity_name	entity_type	entity_ext_id	place_geoid	match_method	auditor	report_title	audit_type	fiscal_year	period_start	period_end	published_date	finding_category	severity	questioned_cost	cost_basis	finding_title	finding_text	report_url	fetched_at
5	wa-sao	1019842	2016-001		WA	Ferry County	County	0113	53019	no_match	Washington State Auditor's Office	Financial and Federal audit — Ferry County	Financial and Federal	2016	2016-01-01	2016-12-31	2019-02-19	federal_award_compliance	material_weakness			The County’s internal controls over financial statement preparation were inadequate to ensure accurate reporting of federal expenditures	Background County management is responsible for designing and follo wing internal controls that provide reasonable assurance regarding the reliability of financial reporting. Our audit identified deficiencies in internal controls that hindered the County’s ability to produce reliable financial statements. All local gover nments in Washington that spend federal funds must prepare a Schedule of Expenditure of Federal Awards (SEFA) as part of the annual financial report. Title 2 Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal A wards (Uniform Guidance) requires grantees to identify, in their accounts, all federal program awards received and spent and to report all federal awards spent on the SEFA each fiscal year. Description of Condition Our audit identified a deficiency in internal controls over financial reporting that represents a significant deficiency. The County’s Accounting Department primarily relied on individual departments to submit complete and accurate federal grant expenditure information to the Accounting Depar tment for reporting. The Department did not have an adequate secondary review process of this information to verify whether grant expenditures were included in the proper period. Cause of Condition The Accounting Department compares federal grant revenue received in the year to federal expenditures reported by its departments to confirm that those expenditures are reasonable. However, the Accounting Department did not also consider reimbursements that County departments receive subsequent to year-end. In addition, prior Public Works staff did not have sufficient knowledge of federal requirements to report federal grant expenditures accurately. The Public Works Department inaccurately provided information for federal grant reimbursements, rather than expenditures. Washington State Auditor’s Office Page 7 Effect of Condition Inaccurate financial reports limit access to financial information used by County officials, the public, state and federal agencies and other interested parties. Inaccurate financial statements also can delay or hinder the audit process and increase audit costs. The County did not include $512,879 from a Highway Planning and Construction grant on its SEFA. The omitted expenditures were significant to the County’s major federal program and required further audit examination for compliance with federal requirements. Inaccurate reporting of federal expenditures can also affect the amount of audit coverage required and delay an audit beyond the required nine -month reporting deadline. Should County staff not identify errors or omit ted financial information in a timely manner, the County might not meet its federal reporting deadline and could jeopardize future federal funding. Recommendation s We recommend that the County:  Improve controls over the accuracy and completeness of SEFA preparation  Provide training to all County staff responsible for federal grant reporting County’s Response In 2016 there was a misunderstanding regarding whether the expenditures or the revenue should be reported. The confusion was due to the difference in reporting of FEMA revenues on the Schedule 16 where as other federal projects report expenditures. Auditor’s Remarks We appreciate the County’s commitment to resolving the issues noted. Applicable Laws and Regulations RCW 43.09.200 Local government account ing – Uniform system of accounting, requires the State Auditor to prescribe the system of accounting and reporting for all local governments. Government Auditing Standards, December 2011 Revision, paragraph 4.23 establishes reporting requirements related t o significant deficiencies or material Washington State Auditor’s Office Page 8 weakness in internal control, instances of fraud or abuse, and noncompliance with provisions of law, regulations, contracts, or grant agreements. The American Institute of Certified Public Accountants defines signific ant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 265, Communicating Internal Control Related Matters Identified in an Audit, paragraph 7. The Budgeting, Accounting, and Reporting System (BARS) manual, 3.1.3, Internal Control, requires each local government to establish and maintain an effective system of internal controls that provides reasonable assurance that the government will achieve its objectives. Washington State Auditor’s Office Page 9 SCHEDULE OF FEDERAL AWARD FINDI NGS AND QUESTIONED COSTS Ferry County January 1, 2016 through December 31, 2016	https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1019842&isFinding=false&sp=false	2026-07-30 13:24:54