Finding 501547 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-10-02
Audit: 323605
Organization: City of Avon Park (FL)

AI Summary

  • Core Issue: The annual Project and Expenditure Report was submitted late, indicating a material weakness in internal controls over compliance.
  • Impacted Requirements: Reports must be submitted by April 30 each year, with controls in place to ensure accuracy, completeness, and timeliness.
  • Recommended Follow-Up: Appoint a qualified grant manager, implement internal controls for reporting, and ensure future reports are filed on time.

Finding Text

Federal Agency: Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Award Period: 03/03/2021 – 12/31/2024 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The award requires a Project and Expenditure Report be submitted by April 30, 2022 and then annually thereafter. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: The annual Project and Expenditure Report was submitted after the reporting due date. There is no review process in place to ensure required reports are filed timely. Questioned costs: None. Context: During our testing of the annual report, we noted the report was due April 30, 2023 but was submitted on May 8, 2023, 8 days after the due date. Cause: Lack of knowledge and training of those managing grants. Effect: Late reporting could result in a Federal agency requiring funds to be returned or inability to secure future grant funding. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Coronavius State and Local Fiscal Recovery Funds have all been depleted. The City is in the process of establishing interal controls for reporting and will review and file all future required reports in a timely and accurate manner. Name(s) of the contact person(s) responsible for corrective action: Melody Sauerhafer Planned completion date for corrective action plan: 09/30/2024.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 501548 2023-003
    Material Weakness
  • 501549 2023-003
    Material Weakness
  • 501550 2023-003
    Material Weakness
  • 501551 2023-004
    Significant Deficiency
  • 501552 2023-004
    Significant Deficiency
  • 501553 2023-004
    Significant Deficiency
  • 501554 2023-005
    Significant Deficiency
  • 501555 2023-005
    Significant Deficiency
  • 501556 2023-005
    Significant Deficiency
  • 1077989 2023-002
    Material Weakness
  • 1077990 2023-003
    Material Weakness
  • 1077991 2023-003
    Material Weakness
  • 1077992 2023-003
    Material Weakness
  • 1077993 2023-004
    Significant Deficiency
  • 1077994 2023-004
    Significant Deficiency
  • 1077995 2023-004
    Significant Deficiency
  • 1077996 2023-005
    Significant Deficiency
  • 1077997 2023-005
    Significant Deficiency
  • 1077998 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.99M
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $324,538
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $48,631
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $3,000