Finding 1206477 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-13
Audit: 398516
Organization: City of Lake Worth Beach (FL)

AI Summary

  • Core Issue: Reports submitted to the U.S. Treasury lacked independent review, violating 2 CFR 200.303 requirements.
  • Impacted Requirements: The absence of documented reviews risks incomplete, erroneous, or late submissions to the Florida Department of State.
  • Recommended Follow-Up: Implement procedures to ensure all reports are independently reviewed and documented before submission.

Finding Text

Reviews of Grant Reports U.S. Department of Treasury ALN 21.027 - COVID 19 Coronavirus State and Local Fiscal Recovery Funds Contract No. Y5177 2021 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Condition: There was no documented review by an independent individual for the reports submitted to the US Treasury department prior to submittal. Cause: The City did not have a process in place to document the review of reports to the US Treasury was prior to submittal. Effect: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: There was no evidence of review provided for the reports submitted during Fiscal Year 2025. Questioned Costs: None, reported finding is a deficiency in internal control. Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal and the review is documented. Management Response: Management agrees with the finding. Management will implement procedures to document independent review of all reports submitted to the U.S. Treasury to ensure completeness, accuracy, and timeliness.

Corrective Action Plan

Reviews of Grant Reports Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal and the review is documented. Management Response: Management agrees with the finding. Management will implement procedures to document independent review of all reports submitted to the U.S. Treasury to ensure completeness, accuracy, and timeliness. Anticipated Completion Date: Immediately Responsible Contact Person: Yannick Ngendahayo, Finance Director

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206478 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.205 HIGHWAY PLANNING AND CONSTRUCTION $636,480
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $450,000
66.468 DRINKING WATER STATE REVOLVING FUND $257,800
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $64,276
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $50,691
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $9,839
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $8,060