Audit 90095

FY End
2022-09-30
Total Expended
$12.41M
Findings
4
Programs
13
Organization: Highlands County, Florida (FL)
Year: 2022 Accepted: 2023-04-16

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
93899 2022-001 Significant Deficiency - H
93900 2022-001 Significant Deficiency - H
670341 2022-001 Significant Deficiency - H
670342 2022-001 Significant Deficiency - H

Contacts

Name Title Type
DVGCMAE96DX5 Sally Hood Auditee
8634026898 Julie Fowler Auditor
No contacts on file

Notes to SEFA

Title: CONTINGENCIES Accounting Policies: BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards and State FinancialAssistance (the Schedule) includes the federal awards and state financial assistance activityof Highlands County, Florida (County) under programs of the federal government and stateof Florida for the year ended September 30, 2022. The information in this Schedule ispresented in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance) and Chapter 69I-5, Rules of the Florida Department of Financial Services.Because the Schedule presents only a selected portion of the operations of the County, it isnot intended to and does not present the financial position, changes in net position, or cashflows of the County.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting for awards and financial assistance recorded in governmental funds and theaccrual basis of accounting for awards and financial assistance recorded in the proprietaryfunds, which are described in Note 1 to the Countys basic financial statements. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidancefor all awards, with the exception of assistance listing number 21.019, which follows criteriadetermined by the Department of Treasury for allowability of costs. Under these principles,certain types of expenditures are not allowable or are limited as to reimbursement. Negativeamounts shown on the Schedule represent adjustments or credits made in the normalcourse of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant monies received and disbursed by the County are for specific purposes and aresubject to review by the grantor agencies. Such audits may result in requests forreimbursement being denied due to disallowed expenditures. Based upon prior experience,the County does not believe that such disallowances, if any, would have a material effect onthe financial position of the County. As of April 10, 2023, there were $117,883 ofoverreported expenditures reported on the previous Schedule under Florida Department ofTransportation County Incentive Grant Program 429841-1-54-01. Additionally, this grantcontract had $129,703 of expenditures that were determined not to be eligible forreimbursement after the close-out of the grant.

Finding Details

Federal agency: Department of the Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 03/03/21 ? 12/31/2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Office of Management and Budget?s (OMB) Compliance Supplement requires that grant funds be used to cover costs incurred during the period beginning on March 3, 2021, and ending on December 31, 2024. Condition: The County originally included expenditures incurred prior to March 3, 2021, in their grant expenditures. Questioned costs: None. Context: The County elected to take the Standard Allowance of up to $10,000,000 in revenue loss as allowed under the Treasury?s final rule. Electing the Standard Allowance allows the County to spend up to that value on the provision of governmental services. The auditors reviewed the data export of payroll expenditures used to support costs allowable under expenditure Category 6.1, Provision of Government Services. In the total population there were nine payroll line items that required a direct replacement. After the replacement, the County still met the $10,000,000 Standard Allowance total allowable under expenditure Category 6.1, Provision of Government Services. The auditors made a statistically valid sample from the updated population to test the underlying support and found no exceptions. Cause: The County?s budget office alerted all departments of the program requirements, including the start date of March 3, 2021. When the information for eligible wages and benefits was gathered, the data included expenditures with payroll report dates of March 3, 2021. However, a portion of the wages and benefits had actually been incurred in February 2021. Review of the data did not detect that the expenditures were incurred prior to March 3, 2021. Effect: The County had to exchange claimed expenditures in order to comply with the period of performance requirement for the program. Repeat Finding: No. Recommendation: We recommend the County select a designated individual to perform a secondary review of program costs to verify that expenditures claimed meet all compliance requirements.
Federal agency: Department of the Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 03/03/21 ? 12/31/2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Office of Management and Budget?s (OMB) Compliance Supplement requires that grant funds be used to cover costs incurred during the period beginning on March 3, 2021, and ending on December 31, 2024. Condition: The County originally included expenditures incurred prior to March 3, 2021, in their grant expenditures. Questioned costs: None. Context: The County elected to take the Standard Allowance of up to $10,000,000 in revenue loss as allowed under the Treasury?s final rule. Electing the Standard Allowance allows the County to spend up to that value on the provision of governmental services. The auditors reviewed the data export of payroll expenditures used to support costs allowable under expenditure Category 6.1, Provision of Government Services. In the total population there were nine payroll line items that required a direct replacement. After the replacement, the County still met the $10,000,000 Standard Allowance total allowable under expenditure Category 6.1, Provision of Government Services. The auditors made a statistically valid sample from the updated population to test the underlying support and found no exceptions. Cause: The County?s budget office alerted all departments of the program requirements, including the start date of March 3, 2021. When the information for eligible wages and benefits was gathered, the data included expenditures with payroll report dates of March 3, 2021. However, a portion of the wages and benefits had actually been incurred in February 2021. Review of the data did not detect that the expenditures were incurred prior to March 3, 2021. Effect: The County had to exchange claimed expenditures in order to comply with the period of performance requirement for the program. Repeat Finding: No. Recommendation: We recommend the County select a designated individual to perform a secondary review of program costs to verify that expenditures claimed meet all compliance requirements.
Federal agency: Department of the Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 03/03/21 ? 12/31/2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Office of Management and Budget?s (OMB) Compliance Supplement requires that grant funds be used to cover costs incurred during the period beginning on March 3, 2021, and ending on December 31, 2024. Condition: The County originally included expenditures incurred prior to March 3, 2021, in their grant expenditures. Questioned costs: None. Context: The County elected to take the Standard Allowance of up to $10,000,000 in revenue loss as allowed under the Treasury?s final rule. Electing the Standard Allowance allows the County to spend up to that value on the provision of governmental services. The auditors reviewed the data export of payroll expenditures used to support costs allowable under expenditure Category 6.1, Provision of Government Services. In the total population there were nine payroll line items that required a direct replacement. After the replacement, the County still met the $10,000,000 Standard Allowance total allowable under expenditure Category 6.1, Provision of Government Services. The auditors made a statistically valid sample from the updated population to test the underlying support and found no exceptions. Cause: The County?s budget office alerted all departments of the program requirements, including the start date of March 3, 2021. When the information for eligible wages and benefits was gathered, the data included expenditures with payroll report dates of March 3, 2021. However, a portion of the wages and benefits had actually been incurred in February 2021. Review of the data did not detect that the expenditures were incurred prior to March 3, 2021. Effect: The County had to exchange claimed expenditures in order to comply with the period of performance requirement for the program. Repeat Finding: No. Recommendation: We recommend the County select a designated individual to perform a secondary review of program costs to verify that expenditures claimed meet all compliance requirements.
Federal agency: Department of the Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: 03/03/21 ? 12/31/2024 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Office of Management and Budget?s (OMB) Compliance Supplement requires that grant funds be used to cover costs incurred during the period beginning on March 3, 2021, and ending on December 31, 2024. Condition: The County originally included expenditures incurred prior to March 3, 2021, in their grant expenditures. Questioned costs: None. Context: The County elected to take the Standard Allowance of up to $10,000,000 in revenue loss as allowed under the Treasury?s final rule. Electing the Standard Allowance allows the County to spend up to that value on the provision of governmental services. The auditors reviewed the data export of payroll expenditures used to support costs allowable under expenditure Category 6.1, Provision of Government Services. In the total population there were nine payroll line items that required a direct replacement. After the replacement, the County still met the $10,000,000 Standard Allowance total allowable under expenditure Category 6.1, Provision of Government Services. The auditors made a statistically valid sample from the updated population to test the underlying support and found no exceptions. Cause: The County?s budget office alerted all departments of the program requirements, including the start date of March 3, 2021. When the information for eligible wages and benefits was gathered, the data included expenditures with payroll report dates of March 3, 2021. However, a portion of the wages and benefits had actually been incurred in February 2021. Review of the data did not detect that the expenditures were incurred prior to March 3, 2021. Effect: The County had to exchange claimed expenditures in order to comply with the period of performance requirement for the program. Repeat Finding: No. Recommendation: We recommend the County select a designated individual to perform a secondary review of program costs to verify that expenditures claimed meet all compliance requirements.