Audit 21248

FY End
2022-09-30
Total Expended
$14.44M
Findings
6
Programs
16
Organization: Okeechobee County, Fl (FL)
Year: 2022 Accepted: 2023-08-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
24539 2022-003 Significant Deficiency - L
24540 2022-003 Significant Deficiency - L
24541 2022-002 Significant Deficiency - L
600981 2022-003 Significant Deficiency - L
600982 2022-003 Significant Deficiency - L
600983 2022-002 Significant Deficiency - L

Contacts

Name Title Type
H28PGQF8EAT3 Johnathan Blanco Auditee
8637639312 Julie S. Fowler, CPA Auditor
No contacts on file

Notes to SEFA

Title: CONTINGENCIES Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the Schedule) includes the federal award and state financial assistance activity of Okeechobee County, Florida (County) under programs of the federal government and state of Florida for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 69I-5, Rules of the Florida Department of Financial Services. Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for awards and financial assistance recorded in governmental funds and the accrual basis of accounting for awards and financial assistance recorded in the proprietary funds, which are described in Note 1 to the Countys basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance and Chapter 69I-5, Rules of the Florida Department of Financial Services wherein certain types of expenditures are not allowable or are limited as to reimbursement, with the exception of Assistance Listing Number 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. As of July 27, 2023, there were no material questioned or disallowed costs as a result of grant audits in process or completed.

Finding Details

Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number: 3-12-0056-023-2021 Award Period: 09/2021 ? 09/2025 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: The FAA requires a signed SF-271 report with each reimbursement request. The County was unable to furnish the submitted reports but did provide auditors evidence of the reimbursement totals that agreed to the values received as reimbursement. Questioned Costs: None. Context: Auditors tested five of the ten financial reports and three out of three performance reports. There were four financial SF-271 reports that could not be provided for audit. Cause: There was turnover in the position responsible for management of the grant, and the reports were not able to be located. Effect: The inability to maintain supporting documentation for the term of contract agreements (often 7 years beyond end of contract term) can cause future monitoring issues with the grantor or external agencies. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number: 3-12-0056-023-2021 Award Period: 09/2021 ? 09/2025 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: The FAA requires a signed SF-271 report with each reimbursement request. The County was unable to furnish the submitted reports but did provide auditors evidence of the reimbursement totals that agreed to the values received as reimbursement. Questioned Costs: None. Context: Auditors tested five of the ten financial reports and three out of three performance reports. There were four financial SF-271 reports that could not be provided for audit. Cause: There was turnover in the position responsible for management of the grant, and the reports were not able to be located. Effect: The inability to maintain supporting documentation for the term of contract agreements (often 7 years beyond end of contract term) can cause future monitoring issues with the grantor or external agencies. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.
Federal agency: Department of the Treasury Federal program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: 081-2020 Award Period: 03/01/2021 ? 12/31/2026 Type of Finding: * Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: There is no evidence of review for the annual report submitted in April 2022. The report was signed only by the preparer. Questioned Costs: None. Context: Auditors requested support for the annual Project, Expenditure, and Subaward report due each April. The supporting documents lacked evidence of internal control over the reporting process. Cause: There was turnover in the position responsible for reporting. As a result of the turnover, evidence of whether review was performed was not available for audit. Effect: A lack of review could cause undetected errors to be reported to the grantor. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number: 3-12-0056-023-2021 Award Period: 09/2021 ? 09/2025 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: The FAA requires a signed SF-271 report with each reimbursement request. The County was unable to furnish the submitted reports but did provide auditors evidence of the reimbursement totals that agreed to the values received as reimbursement. Questioned Costs: None. Context: Auditors tested five of the ten financial reports and three out of three performance reports. There were four financial SF-271 reports that could not be provided for audit. Cause: There was turnover in the position responsible for management of the grant, and the reports were not able to be located. Effect: The inability to maintain supporting documentation for the term of contract agreements (often 7 years beyond end of contract term) can cause future monitoring issues with the grantor or external agencies. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number: 3-12-0056-023-2021 Award Period: 09/2021 ? 09/2025 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: The FAA requires a signed SF-271 report with each reimbursement request. The County was unable to furnish the submitted reports but did provide auditors evidence of the reimbursement totals that agreed to the values received as reimbursement. Questioned Costs: None. Context: Auditors tested five of the ten financial reports and three out of three performance reports. There were four financial SF-271 reports that could not be provided for audit. Cause: There was turnover in the position responsible for management of the grant, and the reports were not able to be located. Effect: The inability to maintain supporting documentation for the term of contract agreements (often 7 years beyond end of contract term) can cause future monitoring issues with the grantor or external agencies. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.
Federal agency: Department of the Treasury Federal program title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: 081-2020 Award Period: 03/01/2021 ? 12/31/2026 Type of Finding: * Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2, Section 200.303(a), CFR, requires the County to maintain effective internal controls over its federal awards. These internal controls should be in compliance with guidance in "Standards for Internal Controls in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Continuous evaluation and monitoring of the internal controls in place allows for reasonable assurance the federal award compliance is achieved. Condition: There is no evidence of review for the annual report submitted in April 2022. The report was signed only by the preparer. Questioned Costs: None. Context: Auditors requested support for the annual Project, Expenditure, and Subaward report due each April. The supporting documents lacked evidence of internal control over the reporting process. Cause: There was turnover in the position responsible for reporting. As a result of the turnover, evidence of whether review was performed was not available for audit. Effect: A lack of review could cause undetected errors to be reported to the grantor. Repeat Finding: No. Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Views of Responsible Officials and Planned Corrective Action: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence.