Audit 371414

2024-001 – Improper Payroll Approvals Information on the Federal Program: Assistance Listing Number 93.569—Community Service Block Grant, United States Department of Health and Human Services. Pass-Through Entity: State of Florida, Department of Commerce. Award Number: E-1994 (CSBG) Type of Finding: Material Weakness. Criteria: In accordance with the Agency’s written internal controls, for employee timesheets, “Supervisors review and approve subordinate’s time at the end of the pay period”. Condition: For 21 of 40 payroll transactions selected for testing during the year under audit, there was no approval of the employee’s timesheet by a Supervisor. Cause: Control activities relating to payroll timesheet approvals are not functioning properly, and the Agency was unable to provide supporting documentation that timesheets were approved by a Supervisor. Effect: The Agency is not following its documented internal controls relating to payroll timesheet approvals on a consistent basis. Recommendation: We recommend that the Agency adhere to written internal controls and ensure that all employee timesheets are approved at a level higher than the employee themselves. Additionally, we recommend that appropriate documentation of the approvals is retained.

2024-002 – Special Tests and Provisions (Tri-Partite Board) - Community Service Block Grant (CSBG) Information on the Federal Program: Assistance Listing Number 93.569—Community Service Block Grant, United States Department of Health and Human Services. Pass-Through Entity: State of Florida, Department of Commerce. Award Number: E-1994 (CSBG) Compliance Requirements: Special Tests and Provisions. Type of Finding: Significant Deficiency. Criteria: In accordance with the requirements of the Program outlined in ALN 93.569, CSBG and the CSBG Act at 42 USC 9910 nonprofit organizations administer CSBG through a board comprising of one third (1/3) of the board members chosen in a democratic selection process adequate to assure that these members are representative of the low-income individuals and families served and an additional 1/3 of the board comprising of public elected and/or appointed officials. Condition: The Agency was unable to meet the 1/3 requirements for the public elected/appointed officials and the 1/3 requirement for low-income individuals and families served during the year ended September 30, 2024. Cause: While the Agency's controls did identify a lack of participation in these areas, they did not include control activities to resolve the non-compliance in a timely manner. Effect: The Agency is out of compliance with the provisions requiring Tri-Partite Board as defined by the CSBG Act at 42 USC 9910. Recommendation: We recommend the Agency recruit board members from the areas identified in order to be in compliance with this requirement.