FAC Explorer

Audit 56597

FY End
2022-09-30
Total Expended
$5.31M
Findings
4
Programs
11
Organization: Jackson County, Florida (FL)
Year: 2022 Accepted: 2023-06-29
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58706 2022-005 Material Weakness Yes L
58707 2022-004 Material Weakness - H
635148 2022-005 Material Weakness Yes L
635149 2022-004 Material Weakness - H

Programs

ALN Program Spent Major Findings
21.027 Covid-19: Coronavirus State and Local Fiscal Recovery Funds $1.97M Yes 0
97.039 Hazard Mitigation Grant $867,350 Yes 0
97.044 Covid-19: Assistance to Firefighters Grant $636,364 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $171,444 - 0
93.563 Child Support Enforcement $96,021 - 0
20.615 E-911 Grant Program $53,886 - 0
16.034 Covid-19: Coronavirus Emergency Supplemental Funding Program $50,170 - 0
97.042 Emergency Management Performance Grants $41,603 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $22,736 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $10,026 Yes 0
90.404 2018 Hava Election Security Grants $2,773 - 0

Contacts

Name Title Type
E523DCNC6CG4 Clay Rooks Auditee
8504829552 Beth Duncan Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2: REPORTING ENTITY Accounting Policies: The supplementary Schedule of Expenditures of Federal Awards and State Financial Assistance include the grant activity of Jackson County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement 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 presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 4: INDIRECT COST The County has not elected to use the 10% de Minimis indirect cost rate. The County for purposes of the Schedule includes all the funds of the primary government as defined by GASB 14, The Financial Reporting Entity.
Title: NOTE 3: PASS-THROUGH AWARDS Accounting Policies: The supplementary Schedule of Expenditures of Federal Awards and State Financial Assistance include the grant activity of Jackson County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement 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 presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 4: INDIRECT COST The County has not elected to use the 10% de Minimis indirect cost rate. The County receives certain federal awards from pass-through awards of the State. The total amount of such pass-through awards is included on the Schedule.
Title: NOTE 5: OTHER TYPES OF FINANCIAL ASSISTANCE Accounting Policies: The supplementary Schedule of Expenditures of Federal Awards and State Financial Assistance include the grant activity of Jackson County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement 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 presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 4: INDIRECT COST The County has not elected to use the 10% de Minimis indirect cost rate. There were no other types of financial assistance to include endowments, insurance in effect, noncash assistance, donated property, or free rent received or included in the Schedule.
Title: NOTE 6: LOAN PROGRAMS Accounting Policies: The supplementary Schedule of Expenditures of Federal Awards and State Financial Assistance include the grant activity of Jackson County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement 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 presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 4: INDIRECT COST The County has not elected to use the 10% de Minimis indirect cost rate. There were no expenditures under loan programs made during the year ended September 30, 2022 to be reported in the Schedule in accordance with the Uniform Guidance. The County has loans outstanding under loan programs where expenditures were reported in prior years, and certain information related to these programs is disclosed here for transparency purposes. Additional information related to this debt is reported in the Notes to the Financial Statements.Jackson County was awarded a loan of $1,473,764 as amended in August 2020, by the Environmental Protection Agency. This award is identified under Assistance Listing Number 66.468, Capitalization Grants for Drinking Water State Revolving Fund, which includes Principal forgiveness of $788,570 with the County obligated to repay $685,194 in principal and $13,980 in capitalized interest. Principal and capitalized interest payable by the County at September 30, 2021 were $682,949 and $1,722, respectively.Jackson County was awarded a loan of $265,742 by the Environmental Protection Agency. This award is identified under Assistance Listing Number 66.468, Capitalization Grants for Drinking Water State Revolving Fund, which includes Principal forgiveness of $132,871 with the County obligated to repay $132,871 in principal and $2,657 in capitalized interest. Principal and capitalized interest payable by the County at September 30, 2021 were $120,792 and $2,416, respectively.
Title: NOTE 7: NONCASH ASSISTANCE Accounting Policies: The supplementary Schedule of Expenditures of Federal Awards and State Financial Assistance include the grant activity of Jackson County, Florida (the County). Federal and state expenditures are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirement 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 presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Note 4: INDIRECT COST The County has not elected to use the 10% de Minimis indirect cost rate. The County did not receive any noncash assistance of federally funded insurance during the fiscal year ended September 30, 2022.

Finding Details

Finding 2022-005
BCC 2022-05 [2021-003] ? REPORTING ? COMPLIANCE AND CONTROLS FEDERAL AGENCY: U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY PASS-THROUGH ENTITY: FLORIDA EXECUTIVE OFFICE OF GOVERNOR, DIVISION OF EMERGENCY MANAGEMENT PROGRAM: DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ALN 97.036 AWARD YEAR: DR 4177 ? 2014, DR 4399 - 2019 FINDING TYPE: MATERIAL WEAKNESS; MATERIAL NONCOMPLIANCE CRITERIA: 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, per the County?s grant agreements with Florida Division of Emergency Management (FDEM), quarterly reports are required to be submitted through FloridaPA.com that include project costs and expenditures for each large project. Amounts in the quarterly reports should reconcile to the County?s accounting records and represent actual expenditures. CONDITION: For fiscal year 2021, two large projects were tested for compliance with this requirement, including all quarterly reports submitted for these projects. This was not a statistically valid sample. For all quarterly reports tested, the reported expenditures per quarter were unable to be reconciled to actual expenditures in the quarter per the invoices and other supporting documentation in the County?s files. For fiscal year 2022, two large projects were tested for compliance with this requirement, including all quarterly reports submitted for these projects. The two projects make up the entire population of projects during fiscal year 2022. For all quarterly reports tested, the reported expenditures per quarter were unable to be reconciled to actual expenditures in the quarter per the invoices and other supporting documentation in the County?s files. CAUSE: This was believed to either be a timing difference between when expenditures were reported vs. when the activity actually occurred, and/or that the consulting staff preparing quarterly reports used estimated rather than actual expenditures in the quarterly reports. There was turnover in consulting staff handling the reports during fiscal year 2021 and staff may not have been properly trained. The issues continued in fiscal year 2022. EFFECT: The County is reporting incorrect project expenditures to FDEM in quarterly reports, which can affect project cost tracking. Under the terms of the grant agreements, submission of inaccurate or incomplete reports could result in FDEM ceasing disbursements to the County, termination of the agreements, or other remedies. Under Florida Statutes, FDEM is responsible for oversight of the operations of the federal award supported activities. Due to the County?s incorrect reporting, FDEM could be reporting incorrect expenditures to the federal agency. QUESTIONED COSTS: None. RECOMMENDATION: We recommend additional training for consulting staff handling quarterly reports to ensure the correct amounts are being included, and a specific review of quarterly report information by a higher level prior to submission to ensure accurate reporting of project costs. STATUS: The condition continues to exist. VIEWS OF RESPONSIBLE OFFICIALS: See Management?s Response and Corrective Action Plan beginning page 125.
Finding 2022-004
BCC 2022-004 ? PERIOD OF PERFORMANCE ? COMPLIANCE AND CONTROLS FEDERAL AGENCY: U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY PASS-THROUGH ENTITY: FLORIDA EXECUTIVE OFFICE OF GOVERNOR, DIVISION OF EMERGENCY MANAGEMENT PROGRAM: DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ALN 97.036 AWARD YEAR: DR 4177 ? 2014 FINDING TYPE: MATERIAL WEAKNESS; MATERIAL NONCOMPLIANCE CRITERIA: 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, under other Uniform Guidance requirements, the County may charge only allowable costs incurred during the approved budget period of a federal award?s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Each individual project under this program has a specified work deadline, which may be extended at the discretion of FEMA. CONDITION: Two projects were tested for compliance with this requirement, including all expenditures during fiscal year 2022 for these projects. The two projects make up the entire population of projects during fiscal year 2022. Both projects have an approved extension of the work deadline (period of performance) through March 31, 2022. However, the County incurred costs for work performed after this extension period. CAUSE: The County is in the process of obtaining approval for an extension of the work deadline for these projects from FEMA. The County has continued to have work performed on the projects in the meantime. EFFECT: If an extension of the work deadline for the projects is not approved, the costs would be ineligible for reimbursement and the County will have reported an incorrect amount of expenditures of federal awards. QUESTIONED COSTS: $462,104. These were determined by totaling costs incurred outside the period of performance based on work dates in the invoices. For any invoices that covered a specified period but costs were not attached to specific dates, the costs were allocated evenly over the period. RECOMMENDATION: We recommend the County obtain approval of an extension of the work deadline for projects prior to incurring costs after the currently approved deadline. VIEWS OF RESPONSIBLE OFFICIALS: See Management?s Response and Corrective Action Plan beginning page 125.
Finding 2022-005
BCC 2022-05 [2021-003] ? REPORTING ? COMPLIANCE AND CONTROLS FEDERAL AGENCY: U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY PASS-THROUGH ENTITY: FLORIDA EXECUTIVE OFFICE OF GOVERNOR, DIVISION OF EMERGENCY MANAGEMENT PROGRAM: DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ALN 97.036 AWARD YEAR: DR 4177 ? 2014, DR 4399 - 2019 FINDING TYPE: MATERIAL WEAKNESS; MATERIAL NONCOMPLIANCE CRITERIA: 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, per the County?s grant agreements with Florida Division of Emergency Management (FDEM), quarterly reports are required to be submitted through FloridaPA.com that include project costs and expenditures for each large project. Amounts in the quarterly reports should reconcile to the County?s accounting records and represent actual expenditures. CONDITION: For fiscal year 2021, two large projects were tested for compliance with this requirement, including all quarterly reports submitted for these projects. This was not a statistically valid sample. For all quarterly reports tested, the reported expenditures per quarter were unable to be reconciled to actual expenditures in the quarter per the invoices and other supporting documentation in the County?s files. For fiscal year 2022, two large projects were tested for compliance with this requirement, including all quarterly reports submitted for these projects. The two projects make up the entire population of projects during fiscal year 2022. For all quarterly reports tested, the reported expenditures per quarter were unable to be reconciled to actual expenditures in the quarter per the invoices and other supporting documentation in the County?s files. CAUSE: This was believed to either be a timing difference between when expenditures were reported vs. when the activity actually occurred, and/or that the consulting staff preparing quarterly reports used estimated rather than actual expenditures in the quarterly reports. There was turnover in consulting staff handling the reports during fiscal year 2021 and staff may not have been properly trained. The issues continued in fiscal year 2022. EFFECT: The County is reporting incorrect project expenditures to FDEM in quarterly reports, which can affect project cost tracking. Under the terms of the grant agreements, submission of inaccurate or incomplete reports could result in FDEM ceasing disbursements to the County, termination of the agreements, or other remedies. Under Florida Statutes, FDEM is responsible for oversight of the operations of the federal award supported activities. Due to the County?s incorrect reporting, FDEM could be reporting incorrect expenditures to the federal agency. QUESTIONED COSTS: None. RECOMMENDATION: We recommend additional training for consulting staff handling quarterly reports to ensure the correct amounts are being included, and a specific review of quarterly report information by a higher level prior to submission to ensure accurate reporting of project costs. STATUS: The condition continues to exist. VIEWS OF RESPONSIBLE OFFICIALS: See Management?s Response and Corrective Action Plan beginning page 125.
Finding 2022-004
BCC 2022-004 ? PERIOD OF PERFORMANCE ? COMPLIANCE AND CONTROLS FEDERAL AGENCY: U.S. DEPARTMENT OF HOMELAND SECURITY, FEDERAL EMERGENCY MANAGEMENT AGENCY PASS-THROUGH ENTITY: FLORIDA EXECUTIVE OFFICE OF GOVERNOR, DIVISION OF EMERGENCY MANAGEMENT PROGRAM: DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS), ALN 97.036 AWARD YEAR: DR 4177 ? 2014 FINDING TYPE: MATERIAL WEAKNESS; MATERIAL NONCOMPLIANCE CRITERIA: 2 CFR 200.303(a) of the Uniform Guidance requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Additionally, under other Uniform Guidance requirements, the County may charge only allowable costs incurred during the approved budget period of a federal award?s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Each individual project under this program has a specified work deadline, which may be extended at the discretion of FEMA. CONDITION: Two projects were tested for compliance with this requirement, including all expenditures during fiscal year 2022 for these projects. The two projects make up the entire population of projects during fiscal year 2022. Both projects have an approved extension of the work deadline (period of performance) through March 31, 2022. However, the County incurred costs for work performed after this extension period. CAUSE: The County is in the process of obtaining approval for an extension of the work deadline for these projects from FEMA. The County has continued to have work performed on the projects in the meantime. EFFECT: If an extension of the work deadline for the projects is not approved, the costs would be ineligible for reimbursement and the County will have reported an incorrect amount of expenditures of federal awards. QUESTIONED COSTS: $462,104. These were determined by totaling costs incurred outside the period of performance based on work dates in the invoices. For any invoices that covered a specified period but costs were not attached to specific dates, the costs were allocated evenly over the period. RECOMMENDATION: We recommend the County obtain approval of an extension of the work deadline for projects prior to incurring costs after the currently approved deadline. VIEWS OF RESPONSIBLE OFFICIALS: See Management?s Response and Corrective Action Plan beginning page 125.