2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
2024-002 [2022‐002]—PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFederal Agency: All presented in the Schedule of Expenditures of Federal Awards. Program Name: All presented in the Schedule of Expenditures of Federal Awards. Assistance Listing Nos. and Program Expenditures: All presented in Schedule of Expenditures of Federal Awards. Award Number and Program Award Year: All awards presented in Schedule of Expenditures of Federal Awards. Compliance Requirement: Other – Schedule of Expenditures of Federal Awards preparation Type of Finding: (F) Significant Deficiency in Internal Control over Compliance of Federal Awards. Questioned Costs: None Statement of Condition During our audit, we reviewed the Coalition’s federal-grants report for the fiscal year and identified the grants, Assistance-Listing numbers (AL #s), expenditure amounts, and all other items required to properly present the Schedule of Expenditures of Federal Awards (SEFA). Finance staff subsequently confirmed the SEFA; however, additional federal expenditures and mis-grouped grant costs were found during later reviews. Criteria2 CFR 200.510 indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards. In addition, 2 CFR Part 200.303 requires the program to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Effect Without an established process governed by effective internal controls, the Coalition may not prevent or detect material misstatements on its SEFA in a timely manner. In addition, errors in SEFA preparation could affect the major federal program determination and lead to noncompliance with 2 CFR 200 Subpart F, which in turn could result in a substandard single audit. Cause Historically, the Coalition has requested the auditor assist in identifying accruals related to federal grant expenditures as the organization has maintained these records on a cash basis. As the organization has taken more responsibility on maintaining its federal grant expenditures on an accrual basis, an incomplete SEFA has been provided. Recommendation We recommend the Coalition prepare the Schedule of Expenditures of Federal Awards and submit this to the auditor for testing. The SEFA should include the name of the grant, name of grantor, the AL #, the pass-through number if applicable and a reconciliation of the federal revenues and expenditures to the Coalition’s general ledger. The Coalition staff should perform more detailed reviews of the reports to ensure they properly reflect grant receipts and expenditures. This review should be performed by someone other than the preparer and should include documented evidence of agreeing the reported data to the accounting records. We further recommend training for those individuals involved in the preparation and review of the reports to ensure they are fully aware of the requirements. View of Responsible Officials and Corrective Action Plan: The corrective Action Plan will be carried out in the 2025 Fiscal Year and information will be given to the auditors when requested for the next audit. The Coalition will ensure that all information needed for the SEFA is kept and entered accurately (this process has already begun). When the fiscal year closes out, the Coalition will provide the auditors with a test SEFA to confirm that the information we are collecting throughout the year and are asserting are the correct numbers for our federal grants, is indeed the correct information. Corrective Action Plan Timeline: Completed by December 19, 2025 (Final copy of the SEFA will not be given to the auditors until requested for the Audit).Designation Of Employee Position Responsible For Meeting Deadline: Executive Director will oversee this project and work directly with NMCEH finance staff work closely with the auditors to make sure that the information saved and shared is correct.
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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Title and Assistance Listing Number of Federal Program - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.510(b) requires organizations to prepare a schedule of expenditures of federal awards (SEFA), which includes total federal awards expended, as determined in accordance with 2 CFR 200.502. Condition - Expenditures incurred for the year ended September 30, 2024 were charged to various federal programs and were not reported on the SEFA for the year ended September 30, 2024. Context - The controls in place to ensure the completeness and accuracy of the SEFA were not operating as designed. As a result, $327,215 of expenditures of federal awards was not reported on the SEFA. These missing expenditures did not relate to major programs. Cause and Effect - The lack of a proper reconciliation of the SEFA to the financial records and lack of a review of the SEFA could result in an inaccurate SEFA and potentially impact major program determinations. Recommendation - We recommend the Board implement a process to ensure completion and timely review of a proper reconciliation of the SEFA to the financial statements prior to commencement of the audit. Views of Responsible Officials and Corrective Action Plan - Management will document a formal control to ensure proper reconciliation of the SEFA to the financial statements. The control will include the following: A report in substantially the same form as the annual SEFA will be developed at least quarterly and will include a reconciliation of grants receivable activity. Meetings will be held at least quarterly to review grant activity, including the aforementioned report, and assess impacts to the financial statements. These meetings will be conducted by treasury and accounting staff, and evidence of document review will be maintained. A centralized repository of information pertaining to federal grants activity will be maintained to ensure timely access to grant and expenditure data for relevant staff.
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program-specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2024, the City expended approximately $2,831,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 - The expenditures reported on the SEFA were understated by $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program-specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2024, the City expended approximately $2,831,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 - The expenditures reported on the SEFA were understated by $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
--Type of Finding: Material weakness in internal control over compliance --Criteria: The Uniform Guidance (2 CFR Part 200, subpart F) states it is the responsibility of the Organization’s management to ensure internal controls are properly designed and implemented in order to identify federal awards and expenditures of federal awards and to prepare a schedule of expenditures of federal awards (SEFA) that includes the total federal awards expended, as determined in accordance with § 200.502. --Condition and Context: While performing audit procedures, we identified two federal subawards that were not previously identified as such by management and had not been included on the SEFA for the year ended September 30, 2024 as originally presented for audit. The SEFA was subsequently corrected prior to issuance of the audit. The original SEFA was materially misstated due to the exclusion of expenditures under the federal subawards totaling $379,232. --Cause of Condition: Management failed to identify the agreements as federal subawards and the related expenditures for inclusion on the SEFA. --Effect of Condition: Failure to accurately identify all federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend the organization revisit its policies and procedures surrounding management’s review of grant and other contractual agreements to ensure all federal assistance, including subawards, are properly identified as such at the time the agreements are signed or received, and are properly included on the SEFA. --Views of Responsible Officials: See attached Corrective Action Plan.
--Type of Finding: Material weakness in internal control over compliance --Criteria: The Uniform Guidance (2 CFR Part 200, subpart F) states it is the responsibility of the Organization’s management to ensure internal controls are properly designed and implemented in order to identify federal awards and expenditures of federal awards and to prepare a schedule of expenditures of federal awards (SEFA) that includes the total federal awards expended, as determined in accordance with § 200.502. --Condition and Context: While performing audit procedures, we identified two federal subawards that were not previously identified as such by management and had not been included on the SEFA for the year ended September 30, 2024 as originally presented for audit. The SEFA was subsequently corrected prior to issuance of the audit. The original SEFA was materially misstated due to the exclusion of expenditures under the federal subawards totaling $379,232. --Cause of Condition: Management failed to identify the agreements as federal subawards and the related expenditures for inclusion on the SEFA. --Effect of Condition: Failure to accurately identify all federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend the organization revisit its policies and procedures surrounding management’s review of grant and other contractual agreements to ensure all federal assistance, including subawards, are properly identified as such at the time the agreements are signed or received, and are properly included on the SEFA. --Views of Responsible Officials: See attached Corrective Action Plan.
--Type of Finding: Material weakness in internal control over compliance --Criteria: The Uniform Guidance (2 CFR Part 200, subpart F) states it is the responsibility of the Organization’s management to ensure internal controls are properly designed and implemented in order to identify federal awards and expenditures of federal awards and to prepare a schedule of expenditures of federal awards (SEFA) that includes the total federal awards expended, as determined in accordance with § 200.502. --Condition and Context: While performing audit procedures, we identified two federal subawards that were not previously identified as such by management and had not been included on the SEFA for the year ended September 30, 2024 as originally presented for audit. The SEFA was subsequently corrected prior to issuance of the audit. The original SEFA was materially misstated due to the exclusion of expenditures under the federal subawards totaling $379,232. --Cause of Condition: Management failed to identify the agreements as federal subawards and the related expenditures for inclusion on the SEFA. --Effect of Condition: Failure to accurately identify all federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend the organization revisit its policies and procedures surrounding management’s review of grant and other contractual agreements to ensure all federal assistance, including subawards, are properly identified as such at the time the agreements are signed or received, and are properly included on the SEFA. --Views of Responsible Officials: See attached Corrective Action Plan.
--Type of Finding: Material weakness in internal control over compliance --Criteria: The Uniform Guidance (2 CFR Part 200, subpart F) states it is the responsibility of the Organization’s management to ensure internal controls are properly designed and implemented in order to identify federal awards and expenditures of federal awards and to prepare a schedule of expenditures of federal awards (SEFA) that includes the total federal awards expended, as determined in accordance with § 200.502. --Condition and Context: While performing audit procedures, we identified two federal subawards that were not previously identified as such by management and had not been included on the SEFA for the year ended September 30, 2024 as originally presented for audit. The SEFA was subsequently corrected prior to issuance of the audit. The original SEFA was materially misstated due to the exclusion of expenditures under the federal subawards totaling $379,232. --Cause of Condition: Management failed to identify the agreements as federal subawards and the related expenditures for inclusion on the SEFA. --Effect of Condition: Failure to accurately identify all federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend the organization revisit its policies and procedures surrounding management’s review of grant and other contractual agreements to ensure all federal assistance, including subawards, are properly identified as such at the time the agreements are signed or received, and are properly included on the SEFA. --Views of Responsible Officials: See attached Corrective Action Plan.
--Type of Finding: Material weakness in internal control over compliance --Criteria: The Uniform Guidance (2 CFR Part 200, subpart F) states it is the responsibility of the Organization’s management to ensure internal controls are properly designed and implemented in order to identify federal awards and expenditures of federal awards and to prepare a schedule of expenditures of federal awards (SEFA) that includes the total federal awards expended, as determined in accordance with § 200.502. --Condition and Context: While performing audit procedures, we identified two federal subawards that were not previously identified as such by management and had not been included on the SEFA for the year ended September 30, 2024 as originally presented for audit. The SEFA was subsequently corrected prior to issuance of the audit. The original SEFA was materially misstated due to the exclusion of expenditures under the federal subawards totaling $379,232. --Cause of Condition: Management failed to identify the agreements as federal subawards and the related expenditures for inclusion on the SEFA. --Effect of Condition: Failure to accurately identify all federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend the organization revisit its policies and procedures surrounding management’s review of grant and other contractual agreements to ensure all federal assistance, including subawards, are properly identified as such at the time the agreements are signed or received, and are properly included on the SEFA. --Views of Responsible Officials: See attached Corrective Action Plan.
Findings and Questioned Costs Relating to Federal Awards 2024 001 SEFA Control Deficiency U.S. Department of Treasury Community Development Financial Institutions Program (ALN 21.033) Statistically Valid Sample: No, and it was not intended to be. Prior Year Finding: Not a repeat finding. Finding Type: Significant deficiency Criteria CFR 200.502(a) requires expenditures be recorded in the period they occur. Additionally, 2 CFR 200.303(a) states that non federal entities must establish and maintain effective internal control over federal awards that provide 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. Condition and Context During our test work over the Schedule of Expenditures of Federal Awards (SEFA), we noted the Organization incorrectly reported expenditures, in the amount of $693,023, incurred in the fiscal year ended September 30, 2023 on the 2024 SEFA. CFR 200.502(a) requires expenditures be recorded on the SEFA in the period they occur. The 2023 expenditures were incurred during the performance period of the grant and were for activities allowed under the grant, therefore there were no questioned costs or noncompliance related to the expenditures. The Organization’s internal controls were not designed to detect that the expenditures were not timely reported on the SEFA. Cause The significant deficiency arose primarily from a misunderstanding and misapplication of SEFA preparation rules in accordance with CFR 200.502(a), specifically regarding the timing of recording expenditures. Effect Failure to properly report expenditures on the SEFA can lead to a missed or incorrect major program determination. Questioned Costs None. Recommendation We recommend that the Organization strengthen its internal controls to ensure all expenditures are reported on the SEFA in the period incurred to comply with the requirements of CFR 200.502(a). Views of Responsible Officials As noted by our auditor, the submitted expenditures were allowable under the grant. The condition exists such that these expenditures were included within the current period SEFA report because that is when they were determined to be applicable, rather than the period when they were actually incurred (the prior period SEFA report). Going forward, management will ensure to report expenditures in the period they were incurred rather than the period they were applied.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.
2024-003 ─ Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) U.S. Department of Transportation – Federal Transit Cluster (ALN No. 20.507) Federal award year 2023 Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. 2 CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. Generally, the activity pertains to events that require the non-federal entity to comply with federal statutes, regulations and the terms and conditions of federal awards, such as expenditure/expense transactions associated with grant awards. Condition: We noted that the Schedule of Expenditures of Federal Awards and State Financial Assistance (Schedule) provided to the auditors for the fiscal year ended September 30, 2024 included $56,503,870 of federal expenditures for the Federal Transit Cluster, assistance listing number 20.507, that should have been included in the Schedule for the fiscal year ended September 30, 2023. The County executed an ARPA transportation grant in September 2023 for which prior year eligible incurred costs were applied, however, these expenditures were not reported on the County’s Schedule until FY 2024. The Schedule for fiscal year ended September 30, 2023 was reissued to include the $56,503,870 and the expenditures were removed from the Schedule for the fiscal year ended September 30, 2024. Context: The finding is considered isolated in nature to the federal program in question. Effect: Improper reporting of federal expenditures resulted in a material error on the Schedule. Identification as a repeat finding, if applicable: Yes (2023-006) Cause: The department directly administering this grant did not realize they had to immediately recognize the expenditures associated with the grant at the time of grant award when the decision was made to apply prior eligible incurred costs. The transaction was not recorded until the reimbursement request was submitted in fiscal year 2024. Recommendation: Grant activities including general ledger activity should be reconciled by the departments managing the programs and the information communicated timely to the Office of Financial Management and Budget (OFMB). Depending on the nature and size of the grant programs these reconciliations could occur, monthly, quarterly or yearly, depending on what is most efficient in each individual situation. Also additional training could be provided to help enhance the understanding of grant personnel around some of the important nuances of revenue and expenditure recognition criteria the County must comply with in accordance with generally accepted accounting principles so they provide OFMB with sufficient information to prepare the end of year Schedule or so they can ask questions of OFMB and County Finance and seek assistance for any matters they are unsure of how to process.