Audit 360407

FY End
2024-09-30
Total Expended
$16.01M
Findings
2
Programs
12
Year: 2024 Accepted: 2025-06-27
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

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Contacts

Name Title Type
MNUWEZN36257 Candida Heater Auditee
5616826486 Moises D. Ariza Auditor
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Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported using the full accrual basis of accounting for grants which are accounted for in the governmental fund types. Such amounts are reported following the cost principles in the Uniform Guidance and State Projects Compliance Supplement, wherein certain types of expenditrues are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards and state financial assistance (the "Schedule" includes the activity of all federal awards and state projects of the South Florida Water Management District (the "District" for the fiscal year ended September 30, 2024. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal and state awards passed through other government agencies are included in the accompanying Schedule. The information in this 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) and Chapter 10.550, Rules of the Auditor General. Because the Schedule presents only a selected portion of the operations of hte District , it is not intended to and does not present the financial position, changes in net position or cash flows of the District. The District's reporting entity is described in Note 1 to the financial statements.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the Schedule are reported using the full accrual basis of accounting for grants which are accounted for in the governmental fund types. Such amounts are reported following the cost principles in the Uniform Guidance and State Projects Compliance Supplement, wherein certain types of expenditrues are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported in the Schedule are reported using the full accrual basis of accounting for grants which are accounted for in the governmental fund types. Such amounts are reported following the cost principles in the Uniform Guidance and State Projects Compliance Supplement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: Noncash Federal Financial Assistance (Unaudited) Accounting Policies: Expenditures reported in the Schedule are reported using the full accrual basis of accounting for grants which are accounted for in the governmental fund types. Such amounts are reported following the cost principles in the Uniform Guidance and State Projects Compliance Supplement, wherein certain types of expenditrues are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In accordance with various cost sharing projects the District has entered into with the U.S. Army Corps of Engineers ("ACOE"), a portion of the project is funded and performed by the ACOE and is considered to be noncash federal financial assistance to the District. However, since the amount is provided by the ACOE and cannot be verified by the District, it has not been subjected to audit as part of the District's federal awards under the Uniform Guiance and the Federal Single Audit Act. The amount of noncash federal financial assistance received by the District, as reproted by the ACOE was $2,658,836 for fiscal year ended September 30, 2024.
Title: Indirect Cost Recovery Accounting Policies: Expenditures reported in the Schedule are reported using the full accrual basis of accounting for grants which are accounted for in the governmental fund types. Such amounts are reported following the cost principles in the Uniform Guidance and State Projects Compliance Supplement, wherein certain types of expenditrues are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Inaccurate Reporting Schedule of Expenditures of Federal Awards and State Financial Assistance. Condition: During our initial testing of the Disaster Grants - Public Assistance (Presidentially Declared Disasters) grant (ALN#97.036), the auditor identified approximately $538,000 in obligated advanced funds from FEMA that were initally reported in the Schedule of Expenditures of Federal Awards and State Financial Assistance ("SEFA"). However, the District had not yet incurred the corresponding expenditures. As a result, the expendture was initally recorded and improperly reflected in the SEFA as a federal award expenditure. The removal of the expenditure amount reduced the Disaster Grant from a Major Type A Program to a Non-Major Type B Program and decreased the federal award expenditure amount by approximately $538,000. Accordingly, these adjustments required the auditor to modify its testing procedures in accordance with the Uniform Guidance. Additionally, the SEFA provided by the District's staff incorrectly reported three (3) expenditures related to CSFA #37.039 (Statewide Water Quality Restoration Projects) totaling approximately $205,000 for services that were performed in previous fiscal years but were presented as a state financial assistance expenditure in the SEFA for the fiscal yedar ended September 30, 2024. Cause: Lack of sufficient review controls over the prepareation and review of the SEFA. Effect: The SEFA was not accurately prepared and could result in incorrect reporting of expenditures to federal and state agencies. Recommendation: We recommend that the staff responsible for the preparation of the SEFA and monitoring of Federal and State Awards receive additional training to possess a thorough understanding of Disaster Grants and their related program requirements. Additionally, the SEFA should be reviewed and approved by management personnel identied by the District who possesses the adequate knowledge and expertise. Such review and approval should take place during the District's financial close process.
Inaccurate Reporting Schedule of Expenditures of Federal Awards and State Financial Assistance. Condition: During our initial testing of the Disaster Grants - Public Assistance (Presidentially Declared Disasters) grant (ALN#97.036), the auditor identified approximately $538,000 in obligated advanced funds from FEMA that were initally reported in the Schedule of Expenditures of Federal Awards and State Financial Assistance ("SEFA"). However, the District had not yet incurred the corresponding expenditures. As a result, the expendture was initally recorded and improperly reflected in the SEFA as a federal award expenditure. The removal of the expenditure amount reduced the Disaster Grant from a Major Type A Program to a Non-Major Type B Program and decreased the federal award expenditure amount by approximately $538,000. Accordingly, these adjustments required the auditor to modify its testing procedures in accordance with the Uniform Guidance. Additionally, the SEFA provided by the District's staff incorrectly reported three (3) expenditures related to CSFA #37.039 (Statewide Water Quality Restoration Projects) totaling approximately $205,000 for services that were performed in previous fiscal years but were presented as a state financial assistance expenditure in the SEFA for the fiscal yedar ended September 30, 2024. Cause: Lack of sufficient review controls over the prepareation and review of the SEFA. Effect: The SEFA was not accurately prepared and could result in incorrect reporting of expenditures to federal and state agencies. Recommendation: We recommend that the staff responsible for the preparation of the SEFA and monitoring of Federal and State Awards receive additional training to possess a thorough understanding of Disaster Grants and their related program requirements. Additionally, the SEFA should be reviewed and approved by management personnel identied by the District who possesses the adequate knowledge and expertise. Such review and approval should take place during the District's financial close process.