Finding 565013 (2024-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-16
Audit: 358881
Organization: City of Daytona Beach, Florida (FL)

AI Summary

  • Core Issue: The City did not consistently document reviews of quarterly grant reports before submission, risking errors and delays.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and grant agreement mandates for timely and accurate reporting.
  • Recommended Follow-Up: The City should maintain the newly implemented review process for all future reports to ensure compliance.

Finding Text

GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State 2024 Funding Repeat Finding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review for the full fiscal year to verify completeness, validity and timeliness of submission. The grant agreement requires quarterly progress reports to be filed with the pass through entity, Florida Department of State. Condition: Review of quarterly reports was not always documented by City officials before submittal by their third party consultant. Cause of condition: The department at the City that is responsible for managing the grant did not originally have a process in place to document their review of progress reports submitted to the Florida Department of State by their third party consultant. Potential effect of condition: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: After this condition was reported as a finding for the fiscal year ending September 30, 2023, the City’s department that is responsible for managing the grant implemented a review process, but it was not in place for the full fiscal year 2024. Questioned costs: None. Recommendation: The City’s department responsible for the grant should continue to perform the review process that was put in place late in fiscal year 2024. Management’s Response:. The City updated its control process to ensure that reports prepared by third-party consultant are reviewed by City staff prior to being submitted to the grantor.

Corrective Action Plan

2024-001 GRANT REPORTING U.S. Department of Treasury ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Contract No. 23.saa.900.46 (2023) Passed through the Florida Department of State 2024 Funding Repeat Finding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports and reimbursement requests should be subject to independent review for the full fiscal year to verify completeness, validity and timeliness of submission. The grant agreement requires quarterly progress reports to be filed with the pass through entity, Florida Department of State. Condition: Review of quarterly reports was not always documented by City officials before submittal by their third party consultant. Cause of condition: The department at the City that is responsible for managing the grant did not originally have a process in place to document their review of progress reports submitted to the Florida Department of State by their third party consultant. Potential effect of condition: Reports submitted to the Florida Department of State may be incomplete, include errors, or be submitted late. Perspective: After this condition was reported as a finding for the fiscal year ending September 30, 2023, the City’s department that is responsible for managing the grant implemented a review process, but it was not in place for the full fiscal year 2024. Questioned costs: None. Recommendation: The City’s department responsible for the grant should continue to perform the review process that was put in place late in fiscal year 2024. Management’s Response: The City updated its control process to ensure that reports prepared by thirdparty consultant are reviewed by City staff prior to being submitted to the grantor. Responsible Parties: Natalia Eckroth, CFO and Christine Aiken, Assistant Finance Director. Anticipated Completion: December 31, 2024.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1141455 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalizations Grants for Drinking Water State Revolving Funds: Inflluent Pump and Headworks $18.49M
66.468 Capitalizations Grants for Drinking Water State Revolving Funds: Heineman Water Tank $7.57M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds African American Historical Cultural Grant - Daisy Stocking Park $694,701
14.218 Community Development Block Grants/entitlement Grants $217,611
97.036 Disaster Grants - Public Assistance (hurricane Irma) $126,728
16.575 Crime Victim Assistance $80,292
16.738 Edward Byrne Memorial Justice Assistance Grant Program $57,355
14.239 Home Investment Partnerships Program $39,424
16.607 Bulletproof Vest Partnership Program $32,931
16.922 Equitable Sharing Program $32,931
20.205 Highway Planning and Construction - Safe Routes to Schools $22,066