ELBERT COUNTY

Finding 2025-001 Material Weakness, Inaccurate Schedule Of Expenditures Of Federal Awards (The SEFA)

Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of a SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA, and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. The County is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis.

Condition: The original SEFA was inaccurate, which led to a material error in the reporting of federal awards. The County incorrectly omitted the Federal Highway Planning and Construction Grant in the aggregate amount of $858,817, which affected the major program determination.

Cause: The SEFA was inaccurate because the funds omitted from the SEFA originally were related to expenditures from several years ago that were obligated in 2025. Due to the time lag in the expenditures, the funds were inaccurately omitted.

Effect: As a result of the errors, the SEFA was materially incorrect. Inaccurate identification of federal awards may also result in inaccurate identification of compliance requirements, risk assessments, major program determination, materiality determinations and reporting errors.

Questioned Costs: None

Context: N/A

Identification As A Repeat Finding: N/A

Recommendation: The County should strengthen its internal controls by enhancing their reconciliation process to ensure the SEFA accurately reflects federal expenditures for the fiscal year.

Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has created a corrective action plan for the finding. See the corrective action plan included in this report.

Eligibility & Special Tests Material Weakness, Internal Control Over Compliance And Compliance

ALN 93.658: Foster Care – Title IV-E Federal Agency: U.S. Department Of Health and Human Services Pass-Through Entity: Colorado Department of Human Services

Criteria Or Specific Requirement: Per 45 CFR 1355.43(a) Title IV-E agencies are required to submit case file information with 45 days. Per 45 CFR 1355.20(a) permanency hearings and home visits must be held not less frequently than every 12 month during the continuation of foster care. These requirements are documented through the SS-9 and SS-10 forms by the County’s caseworkers. Additionally, Payment Rate Setting and Application requirements have been set by the Federal Agency, which require appropriate calculation of maintenance payments.

Condition/Context: In our audit, we noted the County did not complete appropriate documentation for eight cases in a timely manner and one case of the eight tested that did not have the appropriate calculation of maintenance payments.

Cause: The County did not have sufficient internal controls in place to ensure that required documentation was completed by the deadline and that appropriate payment amounts were made.

Effect: Without adequate controls over eligibility determinations, the County did not complete required documentation by the required deadlines and had improper maintenance payments made of $2,593.

Questioned Costs: $2,593.

Identification As A Repeat Finding: N/A

Recommendation: We recommend the County improve its internal controls by ensuring the personnel responsible are appropriately trained and monitored on federal grant requirements.

Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.

Eligibility Significant Deficiency, Internal Control Over Compliance

ALN 93.778: Medicaid Cluster Federal Agency: U.S. Department Of Health and Human Services Pass-Through Entity: Colorado Department of Health Care Policy and Financing

Criteria Or Specific Requirement: The Medicaid program provides medical assistance to individuals whose incomes and resources are insufficient to meet the costs of necessary medical services. Beneficiary eligibility is generally based on financial and non-financial criteria. The County is responsible for determining eligibility and establishing controls over the determination of eligible individuals.

Condition/Context: Internal controls over the eligibility determinations are the responsibility of management. The County has a formal policy for reviews of eligibility determinations; however, this process was not functioning at the frequency that was set by the policy during 2023.

Cause: The related review of eligibility determinations were completed at a lesser frequency than the formal policy stated; however, no ineligible recipients were noted.

Effect: Without sufficient documentation and monitoring controls, the County may not timely detect an error in eligibility determinations.

Questioned Costs: N/A

Identification As A Repeat Finding: N/A

Recommendation: We recommend that the County follow their documented internal control process or adjust process for over review of eligibility determinations.

Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.