Finding 496611 (2023-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-12
Audit: 319410
Organization: Hendry County Bocc (FL)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, leading to inaccurate reporting of grant expenditures for the Coronavirus State and Local Fiscal Recovery Funds.
  • Impacted Requirements: The County failed to comply with the Uniform Guidance (2 CFR Section 200.303) and the annual reporting requirements for ALN 21.027.
  • Recommended Follow-Up: The County should establish and implement internal controls to ensure accurate reporting and compliance with federal requirements.

Finding Text

Finding: 2023-005-HC –Significant Deficiency in Internal Control over Compliance and Other Matter Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number (ALN): 21.027 Pass-through agency: None Federal award number: 1505-0271 Federal Award Year: FY2021, FY2022, FY2023 Control Category: Reporting Questioned Costs: Undetermined Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Additionally, pursuant to the compliance supplement for ALN 21.027, Performance Reports are required to be submitted annually. Condition: During our review of the FY2023 performance report submitted by the County, we discovered that the reported grant expenditures did not match the underlying financial information. We expanded our scope to include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that none of the (3) annual reports accurately reflected the expenditures reported on the Schedule of Expenditures of Federal Awards. Cause: Policies and procedures have not been designed and implemented to ensure accurate reporting of grant expenditures in accordance with Uniform Guidance. Effect: This condition results in inaccurate reporting of grant expenditures to the grantor and could result the loss of federal funds to the County. Recommendation: We recommend that the County implement necessary internal controls to ensure its compliance with the requirements of the Uniform Guidance. Management’s Response: Management’s response is provided within the corrective action plan on page I-103.

Corrective Action Plan

The County will implement necessary internal controls to ensure that expenditures included as allowable costs are in compliance with the requirements of the program and the Uniform Guidance. Additionally, the County will ensure that relevant personnel are properly trained to perform procedures to accurately report expenditures.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 496610 2023-004
    Material Weakness
  • 1073052 2023-004
    Material Weakness
  • 1073053 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.44M
20.205 Highway Planning and Construction $3.43M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $924,709
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $424,367
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $325,967
20.106 Airport Improvement Program $229,581
93.563 Child Support Enforcement $124,394
90.404 2018 Hava Election Security Grants $69,860
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $67,587
97.042 Emergency Management Performance Grants $47,357
16.738 Edward Byrne Memorial Justice Assistance Grant Program $31,770