FAC Explorer

Audit 305842

FY End
2023-09-30
Total Expended
$31.79M
Findings
2
Programs
14
Organization: City of Cape Coral, Florida (FL)
Year: 2023 Accepted: 2024-05-09
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396206 2023-002 Significant Deficiency - L
972648 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $24.20M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.19M Yes 1
93.667 Social Services Block Grant $255,476 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $232,111 - 0
14.218 Community Development Block Grants/entitlement Grants $148,420 - 0
16.575 Crime Victim Assistance $132,968 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $105,000 - 0
97.039 Hazard Mitigation Grant $94,061 - 0
97.044 Assistance to Firefighters Grant $66,158 - 0
20.616 National Priority Safety Programs $64,885 - 0
16.710 Public Safety Partnership and Community Policing Grants $55,075 - 0
20.600 State and Community Highway Safety $20,000 - 0
16.922 Equitable Sharing Program $14,650 - 0
16.839 Stop School Violence $10,638 - 0

Contacts

Name Title Type
ZFZSKMKDMJL6 Mark Mason Auditee
2395740497 Christopher Kessler Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the Schedule) is a supplementary schedule to the City’s basic financial statements and is presented for purposes of additional analysis. The Schedule is required by Title 2 of the U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes. The Schedule includes all federal financial assistance programs and state projects administered by the City of Cape Coral and included in the City’s Annual Comprehensive Financial Report. It specifically excludes federal financial assistance programs and state projects received by the discretely presented component unit, the Cape Coral Charter School Authority.
Title: Note 2: Summary of Signifcant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10-percent de minimus indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the Schedule, the City of Cape Coral provided federal awards to subrecipients as follows: Community Development Block Grants / Entitlement Grants 14.218 $ 997,115 Of the state expenditures presented in the Schedule, the City of Cape Coral provided state financial assistance to subrecipients as follows: Partnership Program (S.H.I.P.) 40.901 $ 342,229
Title: Note 4: Relationship to the Basic Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The City has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal financial assistance expenditures are included in the City’s basic financial statements as follows: General Fund $ 30,117,288 Special Revenue Funds: Community Development Block Grant (CDBG) 1,243,525 Parks and Recreation - Special Populations 255,476 Assistance to Firefighters Grant 66,158 Department of Justice Joint Law Enforcement Operations 14,650 Capital Improvement Funds: Fire - Generator Project 94,061 Total $ 31,791,158 State financial assistance expenditures are included in the City’s basic financial statements as follows: Special Revenue Funds: Parks and Recreation - Special Populations & Transportation 400,057 Local Housing Assistance Fund - State Housing SHIP 1,284,770 Capital Improvement Funds: Transportation - Sidewalk Construction 576,915 Reclaimed Water Transmission River Crossing Project 5,774,054 Total $8,035,796

Finding Details

Finding 2023-002
2023-002 Reporting Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: SLFRP1761 2021 Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of monitoring and reporting program performance. Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding are required to submit quarterly Project and Expenditure Reports that cover one calendar quarter and must be submitted to Treasury by the last day of the month following the end of the period covered. Condition: Quarterly Project and Expenditure Reports were not submitted timely, within 30 days of period end to the U.S. Department of Treasury, as required. Questioned Costs: None Context: During our testing, we reviewed all four Quarterly Project and Expenditure for the period. We noted that two of four Quarterly Project and Expenditure Reports reviewed were not submitted within 30 days of period end, as required. Cause: Policies and procedures were not established to ensure the timely filing of reports. Repeat Finding: No Effect: The City was not in compliance with the reporting requirements as specified in the grant agreement. Recommendation: We recommend that the City design processes and procedures to ensure that all reports are submitted timely as required by grant agreements. We recommend the City develop an internal compliance checklist that includes required reports and due dates to be maintained for tracking and record keeping purposes to assist in monitoring compliance. Views of responsible officials: Management agrees with the above finding and recommendation. However, as a checklist is already in place, the City will evaluate and work with the Department of Treasury for ways to overcome the technical issues encountered, and acknowledged by the Department, that restricts the filing of reports in a timely manner and will continue to closely monitor the quarterly filings with the Department.
Finding 2023-002
2023-002 Reporting Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: SLFRP1761 2021 Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of monitoring and reporting program performance. Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding are required to submit quarterly Project and Expenditure Reports that cover one calendar quarter and must be submitted to Treasury by the last day of the month following the end of the period covered. Condition: Quarterly Project and Expenditure Reports were not submitted timely, within 30 days of period end to the U.S. Department of Treasury, as required. Questioned Costs: None Context: During our testing, we reviewed all four Quarterly Project and Expenditure for the period. We noted that two of four Quarterly Project and Expenditure Reports reviewed were not submitted within 30 days of period end, as required. Cause: Policies and procedures were not established to ensure the timely filing of reports. Repeat Finding: No Effect: The City was not in compliance with the reporting requirements as specified in the grant agreement. Recommendation: We recommend that the City design processes and procedures to ensure that all reports are submitted timely as required by grant agreements. We recommend the City develop an internal compliance checklist that includes required reports and due dates to be maintained for tracking and record keeping purposes to assist in monitoring compliance. Views of responsible officials: Management agrees with the above finding and recommendation. However, as a checklist is already in place, the City will evaluate and work with the Department of Treasury for ways to overcome the technical issues encountered, and acknowledged by the Department, that restricts the filing of reports in a timely manner and will continue to closely monitor the quarterly filings with the Department.