Audit 361644

FY End

2024-09-30

Total Expended

$164.31M

Findings

Programs

Organization: Hillsborough County (FL)

Year: 2024 Accepted: 2025-07-08

Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
570619	2024-005	Material Weakness	Yes	P
570620	2024-005	Material Weakness	Yes	P
570621	2024-005	Material Weakness	Yes	P
570622	2024-005	Material Weakness	Yes	P
570623	2024-005	Material Weakness	Yes	P
570624	2024-005	Material Weakness	Yes	P
570625	2024-005	Material Weakness	Yes	P
570626	2024-005	Material Weakness	Yes	P
570627	2024-005	Material Weakness	Yes	P
570628	2024-005	Material Weakness	Yes	P
570629	2024-005	Material Weakness	Yes	P
1147061	2024-005	Material Weakness	Yes	P
1147062	2024-005	Material Weakness	Yes	P
1147063	2024-005	Material Weakness	Yes	P
1147064	2024-005	Material Weakness	Yes	P
1147065	2024-005	Material Weakness	Yes	P
1147066	2024-005	Material Weakness	Yes	P
1147067	2024-005	Material Weakness	Yes	P
1147068	2024-005	Material Weakness	Yes	P
1147069	2024-005	Material Weakness	Yes	P
1147070	2024-005	Material Weakness	Yes	P
1147071	2024-005	Material Weakness	Yes	P

Programs

ALN	Program	Spent	Major	Findings
93.914	Hiv Emergency Relief Project Grants	$6.69M	Yes	0
93.600	Head Start	$5.05M	-	1
97.083	Staffing for Adequate Fire and Emergency Response (safer)	$4.37M	-	0
97.042	Emergency Management Performance Grants	$2.86M	-	0
93.568	Low-Income Home Energy Assistance	$1.67M	-	0
21.023	Emergency Rental Assistance Program	$1.61M	-	0
93.563	Child Support Services	$1.35M	Yes	1
93.686	Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B	$1.24M	-	0
10.558	Child and Adult Care Food Program	$1.20M	-	0
97.044	Assistance to Firefighters Grant	$672,000	-	0
93.569	Community Services Block Grant	$522,627	-	0
14.231	Emergency Solutions Grant Program	$433,505	-	0
93.044	Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers	$420,407	-	0
20.616	National Priority Safety Programs	$355,443	-	0
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$352,504	-	0
93.045	Special Programs for the Aging, Title Iii, Part C, Nutrition Services	$289,083	-	0
87.052	Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program	$214,940	-	0
93.052	National Family Caregiver Support, Title Iii, Part E	$201,405	-	0
14.239	Home Investment Partnerships Program	$189,276	-	0
20.600	State and Community Highway Safety	$167,566	-	0
97.091	Homeland Security Biowatch Program	$167,358	-	0
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$164,085	-	0
16.585	Treatment Court Discretionary Grant Program	$139,333	-	0
16.043	Veterans Treatment Court Discretionary Grant Program	$131,295	-	0
16.582	Crime Victim Assistance/discretionary Grants	$109,902	-	0
21.032	Local Assistance and Tribal Consistency Fund	$89,769	-	0
20.505	Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research	$87,982	-	0
95.001	High Intensity Drug Trafficking Areas Program	$81,437	-	0
97.039	Hazard Mitigation Grant	$73,621	-	0
21.027	Coronavirus State and Local Fiscal Recovery Funds	$72,553	Yes	1
59.037	Small Business Development Centers	$70,617	-	0
97.056	Port Security Grant Program	$59,373	-	0
97.067	Homeland Security Grant Program	$56,252	-	0
16.036	Comprehensive Forensic Dna Analysis Grant Program	$41,946	-	0
93.658	Foster Care Title IV-E	$41,420	-	0
15.945	Cooperative Research and Training Programs Resources of the National Park System	$39,722	-	0
93.499	Low Income Household Water Assistance Program	$30,108	-	0
20.205	Highway Planning and Construction	$14,417	-	0
66.034	Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act	$3,161	-	0
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$2,072	-	0
66.130	Geographic Programs - Gulf Coast Ecosystem Restoration Council Comprehensive Plan Component	$2,058	-	0
10.555	National School Lunch Program	$1,195	-	0
14.218	Community Development Block Grants/entitlement Grants	$865	-	0
66.001	Air Pollution Control Program Support	$325	-	0

Contacts

Name	Title	Type
PGWKT576NH72	Ajay Gajjar	Auditee
8133077026	Scott Bassett	Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Financial Reporting Entity Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. The Hillsborough County (“County”) reporting entity is defined in Note 1 of the County's Basic Financial Statements. For purposes of the Schedule of Expenditures of Federal Awards and State Financial Assistance (the Schedule), only the primary government and the Hillsborough County City-County Planning Commission, a discretely presented component unit, are included in the reporting entity; the Housing Finance Authority of Hillsborough County, the other discretely presented component unit, is not included. The Housing Finance Authority of Hillsborough County did not have any federal expenditures for the year ended September 30, 2024. These notes provide additional information on the accompanying Schedule. The first part of the Schedule presents expenditures related to federal awards that were provided directly by federal agencies as well as federal awards that were passed through other government agencies. The second part of the Schedule presents expenditures related to state awards that were provided directly by state agencies as well as state awards that were passed through other governmental agencies. Because the Schedule presents only a selected portion of the operations of the County, they are not intended to and do not present the financial position, changes in net position, or where applicable, cash flows of the County.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements.

Title: Note 3- Basis of Presentation Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of Florida Chapter 10.550, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, and Chapter 10.550, Rules of the Auditor General. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.

Title: Note 4 - Negative Figures on the Schedule Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Negative expenditures reported in the Schedule of Expenditures of Federal Awards and State Financial Assistance may be the result of a correction of an expenditure which was originally posted in a prior fiscal year, such as the recording of a refund for goods or services returned or not received. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its entire period of performance.

Title: Note 5 - Capital Equipment Purchased with Grant Funds Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Capital Equipment purchased, which was $5,000 or more and expected to last 1 year or longer, in the amount of $1,727,078 was provided by various grants as noted below: 66.034 - Environmental Protection Agency $14,852 93.600 - Department of Health and Human Services $734,538 97.044 - Department of Homeland Security $584,348 97.091-Homeland Security Biowatch Program $73,938 31.078 - Florida Executive Office of the Governor $319,402

Title: Note 6 - Sales Tax Rebate for Professional Sports Franchise Facilities Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. The County receives a sales tax rebate from the state of Florida under Sections 212.20 and 288.1162, Florida Statutes, for a professional sports franchise facility. The County serves as a conduit passing the entire amount on through to the Tampa Sports Authority for debt service on its stadium bonds. These rebates are designated by the state of Florida to be financial assistance subject to the state Single Audit under CSFA 40.040, but previously designated them as reportable under CSFA 73.016.

Title: Note 7 - Relationship to Grant Reports Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Amounts reported in the accompanying schedules are consistent with the amounts reported in the final grant reports to federal, federal pass-through, state, and state pass-through grantors as of September 30, 2024.

Title: Note 8 - Indirect Costs Accounting Policies: Expenditures reported on the Schedules are reported using the modified accrual basis of accounting for governmental funds and using the accrual basis of accounting in the proprietary funds. In the accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance only the Palm River Water and Sewer Expansion project (CSFA Number 37.039) is reported on the accrual basis of accounting. For more information on the basis of accounting, see Note 1.C. of the County’s Basic Financial Statements. De Minimis Rate Used: N Rate Explanation: The County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. Grant agreements that do not prohibit the inclusion of indirect (facilities and administrative) costs may include such costs. The approval of indirect cost rates are usually formalized by a rate agreement signed by the federal awarding agency and the county administrator, who is the authorized organizational representative for the County. However, the County’s cognizant agency (US Department of Health and Human Services) does not provide a “negotiated indirect cost rate agreement,” but simply requires the County to have an annual Cost Allocation Plan prepared which describes how the County derives its indirect cost rates. See the Indirect Cost Allocation Plan at: https://hcfl.gov/government/budget/budget-information/cost-allocation-plans. The County does not utilize the 10% de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-005

Finding 2024-005: Material Weakness and Noncompliance, Compiling and Reporting an Accurate Schedule of Expenditures of Federal Awards and State Financial Assistance (Repeat) Department of Health and Human Services Assistance Listing Number: 93.600 Program Name: Head Start Cluster, Program Year 2022, 2023 and 2024 Department of the Treasury Passed through the State of Florida Department of State Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Program Year 2023 Department of Health and Human Services Passed through the State of Florida Department of Revenue Assistance Listing Number: 93.563 Program Name: Child Support Enforcement – Title IV-D, Program Year 2024 Department of Environmental Protection Catalog of State Financial Assistance Number: 37.039 Program Name: Statewide Water Quality Restoration Projects, Program Year 2024 Department of Economic Opportunity Catalog of State Financial Assistance Number: 40.040 Program Name: Facilities for New Professional Sports Retained Professional Sports, or Retained Spring Franchise, Program Year 2024 Department of Education and Commissioner of Education Passed through Early Learning Coalition of Hillsborough County Inc. Catalog of State Financial Assistance Number: 48.108 Program Name: Head Start Program, Program Year 2023 and 2024 Department of Children and Families Catalog of State Financial Assistance Number: 60.074 Program Name: Out of Home Supports, Program Year 2024 Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. 2 CFR 200.510(b) indicates that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements which must include total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance (Florida Code), requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: During our audit, we observed that Schedule preparation, analysis, and review was not sufficient to detect and correct errors in the amount of federal and state award expenditures. This resulted in multiple iterations of the Schedule provided to the auditor and material changes to the balances reported on the Schedule. As a result, the Schedule did not comply with the requirements of the Uniform Guidance and the Florida Code. The County’s total federal and state program expenditures increased (decreased) by $31.2 and ($8.4) million, respectively to correct the errors Cause: Internal controls over financial reporting related to the Schedule were not sufficient to ensure that the Schedule and related grant reconciliations were accurate and timely. Questioned Costs: None Context: Federal award program expenditures were understated by approximately $31.2 million and state award program expenditures were overstated by approximately $8.4 million. Effect or potential effect: Misstatements in the SEFA/SESA can result in the inaccurate identification of major programs, audit inefficiencies and SEFA/SESA amounts provided to the users of the compliance report that are misstated. Recommendation: We recommend that management enhance controls and procedures to ensure federal and state award expenditures are accurately reported and reviewed regularly throughout the fiscal year in order to enhance the timeliness and accuracy of Schedule reporting. Views of responsible officials: Management agrees with the finding. See corrective action plan.

Finding 2024-005