FAC Explorer

Finding 570505 (2024-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-07-07
Audit: 361493
Organization: Polk County, Florida (FL)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There are significant deficiencies in the internal controls over compliance, leading to errors in quarterly and close-out reports.
  • Impacted Requirements: Reports must be submitted on time and accurately, as per 2 C.F.R. §200.328, including quarterly and close-out reports.
  • Recommended Follow-Up: Establish a robust review process for quarterly reports and implement monitoring for close-out reports; consider using technology to improve oversight.

Finding Text

Federal Agency: Department of Homeland Security Federal Program Name: Hazard Mitigation Grant Assistance Listing Number: 97.039 Federal Award Identification Number and Year: See table below Award Period: See table below Contract Contact Start Contract End Modification Number Date Date End Date #1 H0684 06/29/2022 05/31/2024 N/A H0890 01/20/2023 09/30/2023 12/31/2023 H0892 01/20/2023 09/30/2023 12/31/2023 H0891 01/24/2023 09/30/2023 12/31/2023 H0164 06/08/2019 03/31/2021 01/31/2023 H0165 02/22/2019 07/31/2021 10/31/2023 H0387 05/13/2020 01/31/2021 08/31/2022 H0245 01/14/2020 08/31/2021 10/31/2023 H0341 10/06/2020 01/31/2022 12/31/2023 H0343 07/07/2020 06/30/2021 03/31/2024 H0349 11/17/2020 12/31/2022 04/30/2024 H0510 10/28/2021 04/30/2023 05/31/2024 H0373 04/20/2020 02/28/2022 10/31/2023 H0370 02/19/2020 12/31/2021 10/31/2023 H0488 01/08/2021 11/30/2022 02/09/2024 H0573 01/08/2021 10/31/2023 12/31/2024 Modification Modification End Date #2 End Date #3 N/A N/A 09/30/2024 12/31/2024 09/30/2024 12/31/2024 09/30/2024 12/31/2024 04/30/2024 N/A N/A N/A 04/30/2024 01/31/2026 N/A N/A 09/30/2024 N/A 03/31/2025 N/A 07/31/2024 N/A 12/31/2024 06/30/2025 N/A NA N/A N/A 09/30/2024 N/A N/A N/A Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Consistent with 2 C.F.R. §200.328, the County shall provide the grantee with quarterly reports and a close-out report. These reports shall include the current status and progress by the County and all subcontractors in completing the work described in the County's scope of work. Quarterly reports are due to the grantee no later than fifteen (15) days after the end of each quarter of the program year and shall be sent each quarter until submission of the administrative close-out report. The ending dates for each quarter of the program year are March 31, June 30, September 30, and December 31. The close-out report is due sixty (60) days after termination of this Agreement or sixty (60) days after completion of the activities contained in this Agreement, whichever first occurs. Condition: Certain reports reviewed had errors in the reporting as noted below: Number of Exceptions Noted Items Number of Error Tested Exceptions Rate Untimely submission of quarterly reports 8 1 13% Project expenditures were incorrectly stated, and no adequate 8 2 25% documentation was provided. No review performed over the quarterly reports before it is 8 7 88% submitted to Florida Division of Emergencv Management. Close-out reports could not be provided 5 4 80% Questioned costs: N/A Context: The auditors tested 8 quarterly reports and 5 close-out reports. Cause: An adequate review was not being performed over the quarterly reports and monitoring was not being performed over the close-out reports. Effect: Inaccurate reporting can cause the grantee to make inaccurate conclusions regarding the County's grant programs. Failure to complete the close-out report results in projects not being properly approved and closed out. Repeat Finding: Yes Recommendation: It was noted that improvements were observed compared to the previous year, however, we advise the County to maintain a review process to ensure quarterly reports are thoroughly examined before submission to FDEM. Additionally, monitoring procedures should be established to guarantee the proper submission of close-out reports. Implementing a technology solution could aid the grant manager in gathering the necessary reports for the granter, facilitating easier oversight and monitoring of grant compliance. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Department of Homeland Security Hazard Mitigation Grant-Assistance Listing No. 97.039 Recommendation: It was noted that improvements were observed compared to the previous year, however, we advise the County to maintain a review process to ensure quarterly reports are thoroughly examined before submission to FDEM. Additionally, monitoring procedures should be established to guarantee the proper submission of close-out reports. Implementing a technology solution could aid the grant manager in gathering the necessary reports for the grantor, facilitating easier oversight and monitoring of grant compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will further strengthen oversight of programmatic reporting by developing and implementing a system of monitoring procedures to guarantee that periodic reports contain the appropriate data, have an adequate review performed by the relative Division Director, and are submitted within the timeframe required by the funder. The proper submission of close-out reports will also be accomplished through the developed monitoring procedures. A grant management software will be purchased and implemented and become a foundational component of the County's grant management infrastructure, allowing for more effective oversight by the County grant manager and ensuring greater compliance with all applicable regulations. Additionally, the County will implement mandatory trainings focusing on 2 CFR Part 200, to ensure fiscal and project managers involved with grant projects are fully educated on uniform administrative requirements, including proper reporting and close-out procedures, cost principles, and audit requirements related to federal and pass-through awards. Name(s) of the contact person(s) responsible for corrective action: Terri Saltzman, Grants and Community Investment Manager. Planned completion date for corrective action plan: September 30, 2025. If the Department of Homeland Security has questions regarding this plan, please call Terri Saltzman at 863-519-2049.

Categories

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 570506 2024-001
    Significant Deficiency Repeat
  • 570507 2024-001
    Significant Deficiency Repeat
  • 570508 2024-001
    Significant Deficiency Repeat
  • 570509 2024-001
    Significant Deficiency Repeat
  • 570510 2024-001
    Significant Deficiency Repeat
  • 570511 2024-001
    Significant Deficiency Repeat
  • 570512 2024-001
    Significant Deficiency Repeat
  • 570513 2024-001
    Significant Deficiency Repeat
  • 1146947 2024-001
    Significant Deficiency Repeat
  • 1146948 2024-001
    Significant Deficiency Repeat
  • 1146949 2024-001
    Significant Deficiency Repeat
  • 1146950 2024-001
    Significant Deficiency Repeat
  • 1146951 2024-001
    Significant Deficiency Repeat
  • 1146952 2024-001
    Significant Deficiency Repeat
  • 1146953 2024-001
    Significant Deficiency Repeat
  • 1146954 2024-001
    Significant Deficiency Repeat
  • 1146955 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $28.71M
97.039 Hazard Mitigation Grant $4.15M
14.239 Home Investment Partnerships Program $2.31M
93.493 Congressional Directives $713,044
20.205 Highway Planning and Construction $655,431
93.563 Child Support Services $446,004
14.218 Community Development Block Grants/entitlement Grants $355,648
14.231 Emergency Solutions Grant Program $314,157
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $295,903
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $258,641
21.023 Emergency Rental Assistance Program $249,735
97.042 Emergency Management Performance Grants $180,257
16.812 Second Chance Act Reentry Initiative $172,677
93.959 Block Grants for Prevention and Treatment of Substance Abuse $132,081
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $104,824
93.558 Temporary Assistance for Needy Families $84,997
90.401 Help America Vote Act Requirements Payments $46,779
93.556 Marylee Allen Promoting Safe and Stable Families Program $24,566
93.590 Community-Based Child Abuse Prevention Grants $23,002
16.738 Edward Byrne Memorial Justice Assistance Grant Program $13,006