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.

Condition – During our audit, we noted that the County utilized 74.4% of the expenditures on out-of-school youth, a deficiency of .6%. Furthermore, the County utilized 15.8% of youth expenditures for paid and unpaid work experience, a 4.2% deficiency.

Effect – The effect is not providing the required services to the program’s youth according to the program's requirements.

Cause – The cause is the lack of monitoring the nature and classification of expenditures of the program.

Criteria – According to 29 USC §3164(a)(4)(A), Out-of-School Priority, for any program year, not less than 75 percent of the funds allotted shall be used to provide youth workforce investment activities for out-of-school youth. In addition, 29 USC §3164(c)(4), Priority, not less than 20 percent of the funds allocated, shall be used to provide paid and unpaid work experiences that have a component of academic and occupational education.

Recommendation – We recommend that Yavapai County monitor quarterly the earmarking requirements to verify the correct services are being provided to its participants.

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.

Condition – During our audit, we noted the County did not complete the required monitoring until six months after the fiscal year end.

Effect – The effect is the potential for untimely correction of subrecipient noncompliance.

Cause – The cause is a lack of timely information received from the subrecipient to complete the monitoring timely.

Criteria – According to 2 CFR §200.344, Close-out, subrecipients must submit all reports within 90 days of the year-end to its pass-through entity.

Recommendation – We recommend that Yavapai County establish a system of subrecipient monitoring during the year to complete closeout reports within the 90 day requirement.

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.

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.