FAC Explorer

Audit 319410

FY End
2023-09-30
Total Expended
$12.12M
Findings
4
Programs
11
Organization: Hendry County Bocc (FL)
Year: 2023 Accepted: 2024-09-12
Auditor: Ashley Brown & Smith Cpa's P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496610 2023-004 Material Weakness - A
496611 2023-005 Significant Deficiency - L
1073052 2023-004 Material Weakness - A
1073053 2023-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.44M Yes 2
20.205 Highway Planning and Construction $3.43M Yes 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $924,709 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $424,367 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $325,967 - 0
20.106 Airport Improvement Program $229,581 - 0
93.563 Child Support Enforcement $124,394 - 0
90.404 2018 Hava Election Security Grants $69,860 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $67,587 - 0
97.042 Emergency Management Performance Grants $47,357 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $31,770 - 0

Contacts

Name Title Type
VJHJL1FXEEL6 Steve Clark Auditee
8636755322 Tony Smith Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - GENERAL Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the “Schedule”) presents the activity of all federal awards and state financial assistance of Hendry County, Florida (the “County”) for the year ended September 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the County, the schedule is not intended to and does not present the financial position, changes in net position, or cash flows of the County. The County’s reporting entity is defined in Note 1 to the County’s basic financial statements for the fiscal year ended September 30, 2023. All federal award and state financial assistance programs received directly from federal and state agencies, as well as federal award and state financial assistance programs passed through other government agencies, are included in the schedule.
Title: NOTE 2 - INDIRECT COST RATE Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs.
Title: NOTE 3 - CONTINGENCIES Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. Grant monies received 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 September 30, 2023, there were no material questioned or disallowed costs as a result of grant audits in process or completed of which management was aware. Any adjustments to grant funding are recorded in the year the adjustment occurs.
Title: NOTE 4 - MAJOR FEDERAL PROGRAM DETERMINATION Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. Major federal program determination has been completed in accordance with the Uniform Guidance.
Title: NOTE 5 - MAJOR STATE PROJECT DETERMINATION Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. Major state program determination has been completed in accordance with the Florida Single Audit Act.
Title: NOTE 6 - SUBRECIPIENTS Accounting Policies: The Schedule is presented in accordance with Uniform Guidance using the modified accrual basis of accounting, which is described in Note 1 to the County’s Basic Financial Statements for the fiscal year ended September 30, 2023. De Minimis Rate Used: N Rate Explanation: The County has elected to not use the 10 percent de minimis indirect cost rate as covered in 2 CFR 200.414 (f) Indirect Costs. The County transferred $28,370 of federal awards to the City of Clewiston during the fiscal year ended September 30, 2023.

Finding Details

Finding 2023-004
Finding: 2023-004-HC – Material Weakness in Internal Control over Compliance and Other Matter Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number (ALN): 21.027 Pass-through agency: None Federal award number: 1505-0271 Federal Award Year: FY2021, FY2022, FY2023 Control Category: Activities Allowed or Unallowed, and Allowable Costs/Cost Principles Questioned Costs: FY2021 $197,448; FY2022 $487,891; FY2023 $657,937. Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, pursuant to the compliance supplement for ALN 21.027, Activities Unallowed, include deposits into pension funds. Condition: During our review of a sample of FY23 expenditures, we discovered that pension costs were included as allowable costs determined by the program manager. We expanded our scope to include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that pension costs were included for all three fiscal years. All reported pension costs are included above under Questioned Costs. Cause: Policies and procedures have not been designed and implemented to ensure compliance with Activities Allowed or Unallowed and Allowable Costs. Effect: This condition narrowly resulted in noncompliance with federal requirements and could have resulted in misstated reports and undetected errors. This could have led to the loss of federal funds to the County. Recommendation: We recommend that the County implement necessary internal controls to ensure its compliance with the requirements of the Uniform Guidance. The County has adequate costs under the standard allowance to substitute for the questioned costs, which should be substituted for other government services’ costs. Management’s Response: Management’s response is provided within the corrective action plan on page I-103.
Finding 2023-005
Finding: 2023-005-HC –Significant Deficiency in Internal Control over Compliance and Other Matter Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number (ALN): 21.027 Pass-through agency: None Federal award number: 1505-0271 Federal Award Year: FY2021, FY2022, FY2023 Control Category: Reporting Questioned Costs: Undetermined Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, pursuant to the compliance supplement for ALN 21.027, Performance Reports are required to be submitted annually. Condition: During our review of the FY2023 performance report submitted by the County, we discovered that the reported grant expenditures did not match the underlying financial information. We expanded our scope to include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that none of the (3) annual reports accurately reflected the expenditures reported on the Schedule of Expenditures of Federal Awards. Cause: Policies and procedures have not been designed and implemented to ensure accurate reporting of grant expenditures in accordance with Uniform Guidance. Effect: This condition results in inaccurate reporting of grant expenditures to the grantor and could result the loss of federal funds to the County. Recommendation: We recommend that the County implement necessary internal controls to ensure its compliance with the requirements of the Uniform Guidance. Management’s Response: Management’s response is provided within the corrective action plan on page I-103.
Finding 2023-004
Finding: 2023-004-HC – Material Weakness in Internal Control over Compliance and Other Matter Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number (ALN): 21.027 Pass-through agency: None Federal award number: 1505-0271 Federal Award Year: FY2021, FY2022, FY2023 Control Category: Activities Allowed or Unallowed, and Allowable Costs/Cost Principles Questioned Costs: FY2021 $197,448; FY2022 $487,891; FY2023 $657,937. Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, pursuant to the compliance supplement for ALN 21.027, Activities Unallowed, include deposits into pension funds. Condition: During our review of a sample of FY23 expenditures, we discovered that pension costs were included as allowable costs determined by the program manager. We expanded our scope to include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that pension costs were included for all three fiscal years. All reported pension costs are included above under Questioned Costs. Cause: Policies and procedures have not been designed and implemented to ensure compliance with Activities Allowed or Unallowed and Allowable Costs. Effect: This condition narrowly resulted in noncompliance with federal requirements and could have resulted in misstated reports and undetected errors. This could have led to the loss of federal funds to the County. Recommendation: We recommend that the County implement necessary internal controls to ensure its compliance with the requirements of the Uniform Guidance. The County has adequate costs under the standard allowance to substitute for the questioned costs, which should be substituted for other government services’ costs. Management’s Response: Management’s response is provided within the corrective action plan on page I-103.
Finding 2023-005
Finding: 2023-005-HC –Significant Deficiency in Internal Control over Compliance and Other Matter Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number (ALN): 21.027 Pass-through agency: None Federal award number: 1505-0271 Federal Award Year: FY2021, FY2022, FY2023 Control Category: Reporting Questioned Costs: Undetermined Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, pursuant to the compliance supplement for ALN 21.027, Performance Reports are required to be submitted annually. Condition: During our review of the FY2023 performance report submitted by the County, we discovered that the reported grant expenditures did not match the underlying financial information. We expanded our scope to include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that none of the (3) annual reports accurately reflected the expenditures reported on the Schedule of Expenditures of Federal Awards. Cause: Policies and procedures have not been designed and implemented to ensure accurate reporting of grant expenditures in accordance with Uniform Guidance. Effect: This condition results in inaccurate reporting of grant expenditures to the grantor and could result the loss of federal funds to the County. Recommendation: We recommend that the County implement necessary internal controls to ensure its compliance with the requirements of the Uniform Guidance. Management’s Response: Management’s response is provided within the corrective action plan on page I-103.