Audit 306784

FY End
2023-09-30
Total Expended
$201.13M
Findings
2
Programs
32
Organization: Lee County, Florida (FL)
Year: 2023 Accepted: 2024-05-21

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
398065 2023-002 Significant Deficiency - AB
974507 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
10.923 Emergency Watershed Protection Program $8.38M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.52M Yes 0
21.023 Emergency Rental Assistance Program $2.51M - 0
20.106 Airport Improvement Program $2.37M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.77M Yes 0
20.507 Federal Transit_formula Grants $990,379 - 0
14.239 Home Investment Partnerships Program $718,238 - 0
97.039 Hazard Mitigation Grant $644,504 Yes 0
93.568 Low-Income Home Energy Assistance $519,281 - 0
93.563 Child Support Enforcement $356,130 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $340,368 - 0
16.922 Equitable Sharing Program $312,052 - 0
93.499 Low Income Household Water Assistance Program $203,986 - 0
90.404 2018 Hava Election Security Grants $189,955 - 0
97.042 Emergency Management Performance Grants $162,959 - 0
21.016 Equitable Sharing $151,008 - 0
20.205 Highway Planning and Construction $134,098 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $131,325 - 0
14.267 Continuum of Care Program $119,388 - 0
14.231 Emergency Solutions Grant Program $93,790 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $88,918 - 0
93.569 Community Services Block Grant $56,302 - 0
14.261 Homeless Management Information Systems Technical Assistance $55,917 - 0
14.241 Housing Opportunities for Persons with Aids $48,332 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $33,770 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $20,388 - 0
93.558 Temporary Assistance for Needy Families $16,307 - 0
97.067 Homeland Security Grant Program $15,328 - 0
15.657 Endangered Species Conservation Ð Recovery Implementation Funds $13,597 - 0
16.606 State Criminal Alien Assistance Program $4,280 - 0
14.218 Community Development Block Grants/entitlement Grants $3,686 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $1,757 - 0

Contacts

Name Title Type
SS8JCN35XH77 Michelle Crowell Auditee
2395332183 Christopher Kessler Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Basis of Presentation, Indirect Costs De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Board of County Commissioners (the Board) is the legislative body for Lee County, Florida having the responsibility of budgeting and providing all the funding used by the various County departments and the separate Constitutional Officers, with the exception of fees collected by the Clerk of Circuit Court, Property Appraiser, and Tax Collector. Under the direction of the Clerk of Circuit Court, the Finance & Records Department maintains the accounting system for the Board’s operations. The other Constitutional Officers maintain their own accounting systems. For purposes of this report the operations of the County as a whole, including all Constitutional Officers, have been presented. In addition to the divisions of the Board and the Constitutional Officers, the Lee County Port Authority, a blended component unit, is included. The accompanying schedule of expenditures of federal awards and state financial assistance (Schedule) summarizes the expenditures incurred under all federal programs and state projects by Lee County, Florida for the fiscal year ended September 30, 2023, which are recognized on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Section 215.97, Florida Statutes, and Rules of the Auditor General, Chapter 10.550. For purposes of this Schedule, federal programs and state projects include all grants and contracts entered into directly between the County and agencies and departments of the federal or state government. Federal programs or state projects passed through other government agencies, if any, are also included in the Schedule. 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, change in net position, or cash flows of the County.
Title: Indirect Costs Accounting Policies: Basis of Presentation, Indirect Costs De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The County provides certain services and facilities to federal and state programs such as disbursing, banking, general data processing, office space, and furnishings. Costs for these services are allocated based on certain pre-approved allocation criteria. The County allocated costs for these indirect services to the Department of Housing and Urban Development’s CDBG Grant (Assistance Listing #14.218) in the amount of $28,371.

Finding Details

2023-002 Grant Payroll Documentation and Recordkeeping Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3404 - 2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: Compliance: 2 CFR 200.302(b)(3) states that records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. 2 CFR 200.403 states that costs must be adequately documented. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control 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). Condition: The County did not maintain documentation supporting certain payroll expenditures charged to the grant. Questioned Costs: Under $25,000. Context: For four of the sixty employee pays selected for testing the underlying payroll records did not support the amount charged to the grant. Cause: Payroll documentation supporting the wage amounts charged to the grant program was not properly maintained by the County. Effect: Failure to maintain supporting documentation to the employee payroll charged to grant programs may result in unallowed cost and activities being charged to the grant, causing noncompliance with the Federal compliance requirements. Repeat Finding: No Recommendation: We recommend the County establish internal control procedures to ensure that all amounts charged to grant programs for employee payroll costs be reconciled to the specific employee payroll records and that supporting documentation be maintained throughout the grant award period and beyond.
2023-002 Grant Payroll Documentation and Recordkeeping Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP3404 - 2021 Award Period: March 3, 2021 through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: Compliance: 2 CFR 200.302(b)(3) states that records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. 2 CFR 200.403 states that costs must be adequately documented. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control 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). Condition: The County did not maintain documentation supporting certain payroll expenditures charged to the grant. Questioned Costs: Under $25,000. Context: For four of the sixty employee pays selected for testing the underlying payroll records did not support the amount charged to the grant. Cause: Payroll documentation supporting the wage amounts charged to the grant program was not properly maintained by the County. Effect: Failure to maintain supporting documentation to the employee payroll charged to grant programs may result in unallowed cost and activities being charged to the grant, causing noncompliance with the Federal compliance requirements. Repeat Finding: No Recommendation: We recommend the County establish internal control procedures to ensure that all amounts charged to grant programs for employee payroll costs be reconciled to the specific employee payroll records and that supporting documentation be maintained throughout the grant award period and beyond.