Finding 1216441 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402949
Organization: Highlands County, Florida (FL)

AI Summary

  • Core Issue: The County lacks formal procedures for supervisory review and approval of grant reports, leading to potential inaccuracies.
  • Impacted Requirements: Compliance with 2 CFR §200.303(a) is at risk, as there are no documented controls ensuring report accuracy and completeness.
  • Recommended Follow-Up: Implement formal review procedures for all grant reports, ensuring documentation of supervisory approval is retained.

Finding Text

2025-002 – Reporting Federal Agency: Department of Homeland Security Federal Program Name: Disaster Grants - Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Pass-Through Agency: Florida Division of Emergency Management Pass-Through Numbers: Z2891, Z0581, Z4745, Z4858 Award Period: September 23, 2022 to March 29, 2024; September 4, 2017 to March 10, 2019; October 5, 2024 to April 11, 2026; and October 5, 2024 to April 11, 2025 Type of Finding: 􀁸 Material Weakness in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR §200.303(a), the County must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and award terms. Internal controls should include procedures to ensure that required reports are accurate, complete, and subject to appropriate supervisory review prior to submission. Condition: During our testing, we reviewed 5 quarterly reports submitted to the grantor and noted that noted that none contained evidence of supervisory review or approval to ensure the accuracy and completeness of the reported information prior to submission. Questioned costs: None Context: 5 of the 12 quarterly reports were reviewed as part of the audit. No documentation of review or approval was identified for any of the reports tested. Cause: The County had not established or implemented formal review and approval procedures over the preparation and submission of grant reporting. Effect: The absence of documented review and approval controls increases the risk that errors or omissions in required reports may not be detected and corrected prior to submission, resulting in inaccurate information being provided to grantors. This could impact funding decisions, compliance with grant requirements, or future reimbursements. Repeat Finding: No. Recommendation: We recommend the County establish and implement formal procedures requiring supervisory review and approval of all reports submitted to grantors. Evidence of review should be documented and retained, including the reviewer’s signature or electronic approval, the date of review, and the date of submission, to support compliance with reporting requirements. Views of responsible officials: There is no disagreement with the finding.

Corrective Action Plan

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County establish and implement formal procedures requiring supervisory review and approval of all reports submitted to grantors. Evidence of review should be documented and retained, including the reviewer’s signature or electronic approval, the date of review, and the date of submission, to support compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County has established a review and approval process for quarterly reports. Reports will be reviewed and signed by a member of management to ensure accuracy and completeness of the data being submitted. Name of the contact person responsible for corrective action: Tanya Cannady, Business Services Director Planned completion date for corrective action plan: June 2026

Categories

Cash Management Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216436 2025-001
    Material Weakness Repeat
  • 1216437 2025-001
    Material Weakness Repeat
  • 1216438 2025-002
    Material Weakness Repeat
  • 1216439 2025-002
    Material Weakness Repeat
  • 1216440 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.33M
93.563 CHILD SUPPORT SERVICES $368,769
16.593 RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE PRISONERS $174,984
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $89,398
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $66,064
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $59,368
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $25,681
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $24,321
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $23,083
90.404 HAVA ELECTION SECURITY GRANTS $10,825
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $9,832
16.575 CRIME VICTIM ASSISTANCE $8,951
20.205 HIGHWAY PLANNING AND CONSTRUCTION $5,495
21.019 CORONAVIRUS RELIEF FUND $-2,894