Audit 368223

Assistance Listing Number: 97.036 Program Title: Disaster Grants-Public Assistance (Presidentially Declared Disasters) Compliance Requirement: Reporting - Performance Reporting Pass-through Entity: Florida Division of Emergency Management Federal Grant/Contract Number and Grant Year: Z0884 2019 Finding Type: Material Weakness in Internal Control and Compliance Known Questioned Costs: $0 Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Federal awards submitted to the federal awarding agency should include all the activity of the reporting period, are supported by the underlying accounting or performance records, and are fairly presented in accordance with program. Condition: Of the 40 quarterly Federal Emergency Management Agency reports included in our sample for testing, 3 of the reports prepared by the County’s consultant were not based on the approved expenses and the underlying supporting documentation. This was not a statistically valid sample. Cause: The County has not implemented procedures to formally document their review of the quarterly reporting prior to submission of those reports by their third-party consultant to the Florida Division of Emergency Management which would have been able to detect these errors. Effect: Quarterly reporting could include potential errors and cause the County to be out of compliance with the requirements of the grant. Recommendation: The County should implement formal documentation via signature of approval on the quarterly reporting prior to submission to the Florida Division of Emergency Management. Management Response: See attached Corrective Action Plan.

Assistance Listing Number: 97.083 Program Title: Staffing for Adequate Fire and Emergency Response Grant (SAFER)Compliance Requirement: Cash Management Pass-through Entity: N/A - Direct Federal Grant/Contract Number and Grant Year: EMW-2019-FF-01635 2019 Finding Type: Material Weakness in Internal Control and Compliance Known Questioned Costs: $0 Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: Of the three reimbursement requests selected for testing, two reimbursement requests had ineligible payroll costs approved for reimbursement by the Grant Administrator. This was not a statistically valid sample. Cause: Errors in the completion of the report by the Grant Administrator and inadequate review of the reports by the County which would have detected these errors. Effect: In both instances, the grantor caught the ineligible costs submitted for reimbursement and only reimbursed the eligible payroll costs. However, this could have been a much more significant issue if the grantor had not caught these ineligible costs which would then have caused the County to be out of compliance with the requirements of the grant. Recommendation: The County should implement an additional review of the payroll costs submitted with the reimbursement request. Review should be documented via signature of approval prior to submission or formal email confirmation that a review was done and the reimbursement request may be submitted. Management Response: See attached Corrective Action Plan.