FAC Explorer

Finding 570620 (2024-005)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-07-08
Audit: 361644
Organization: Hillsborough County (FL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The Schedule of Expenditures for federal and state awards was inaccurate, leading to significant misstatements of $31.2 million underreported and $8.4 million overreported.
  • Impacted Requirements: Compliance with 2 CFR 200.510(b) and Florida Administrative Code Rule 69I-5.003 was not met due to insufficient internal controls over financial reporting.
  • Recommended Follow-Up: Management should strengthen controls and procedures for regular review and accurate reporting of federal and state expenditures throughout the fiscal year.

Finding Text

Finding 2024-005: Material Weakness and Noncompliance, Compiling and Reporting an Accurate Schedule of Expenditures of Federal Awards and State Financial Assistance (Repeat) Department of Health and Human Services Assistance Listing Number: 93.600 Program Name: Head Start Cluster, Program Year 2022, 2023 and 2024 Department of the Treasury Passed through the State of Florida Department of State Assistance Listing Number: 21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Program Year 2023 Department of Health and Human Services Passed through the State of Florida Department of Revenue Assistance Listing Number: 93.563 Program Name: Child Support Enforcement – Title IV-D, Program Year 2024 Department of Environmental Protection Catalog of State Financial Assistance Number: 37.039 Program Name: Statewide Water Quality Restoration Projects, Program Year 2024 Department of Economic Opportunity Catalog of State Financial Assistance Number: 40.040 Program Name: Facilities for New Professional Sports Retained Professional Sports, or Retained Spring Franchise, Program Year 2024 Department of Education and Commissioner of Education Passed through Early Learning Coalition of Hillsborough County Inc. Catalog of State Financial Assistance Number: 48.108 Program Name: Head Start Program, Program Year 2023 and 2024 Department of Children and Families Catalog of State Financial Assistance Number: 60.074 Program Name: Out of Home Supports, Program Year 2024 Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. 2 CFR 200.510(b) indicates that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements which must include total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance (Florida Code), requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: During our audit, we observed that Schedule preparation, analysis, and review was not sufficient to detect and correct errors in the amount of federal and state award expenditures. This resulted in multiple iterations of the Schedule provided to the auditor and material changes to the balances reported on the Schedule. As a result, the Schedule did not comply with the requirements of the Uniform Guidance and the Florida Code. The County’s total federal and state program expenditures increased (decreased) by $31.2 and ($8.4) million, respectively to correct the errors Cause: Internal controls over financial reporting related to the Schedule were not sufficient to ensure that the Schedule and related grant reconciliations were accurate and timely. Questioned Costs: None Context: Federal award program expenditures were understated by approximately $31.2 million and state award program expenditures were overstated by approximately $8.4 million. Effect or potential effect: Misstatements in the SEFA/SESA can result in the inaccurate identification of major programs, audit inefficiencies and SEFA/SESA amounts provided to the users of the compliance report that are misstated. Recommendation: We recommend that management enhance controls and procedures to ensure federal and state award expenditures are accurately reported and reviewed regularly throughout the fiscal year in order to enhance the timeliness and accuracy of Schedule reporting. Views of responsible officials: Management agrees with the finding. See corrective action plan.

Categories

Reporting

Other Findings in this Audit

  • 570619 2024-005
    Material Weakness Repeat
  • 570621 2024-005
    Material Weakness Repeat
  • 570622 2024-005
    Material Weakness Repeat
  • 570623 2024-005
    Material Weakness Repeat
  • 570624 2024-005
    Material Weakness Repeat
  • 570625 2024-005
    Material Weakness Repeat
  • 570626 2024-005
    Material Weakness Repeat
  • 570627 2024-005
    Material Weakness Repeat
  • 570628 2024-005
    Material Weakness Repeat
  • 570629 2024-005
    Material Weakness Repeat
  • 1147061 2024-005
    Material Weakness Repeat
  • 1147062 2024-005
    Material Weakness Repeat
  • 1147063 2024-005
    Material Weakness Repeat
  • 1147064 2024-005
    Material Weakness Repeat
  • 1147065 2024-005
    Material Weakness Repeat
  • 1147066 2024-005
    Material Weakness Repeat
  • 1147067 2024-005
    Material Weakness Repeat
  • 1147068 2024-005
    Material Weakness Repeat
  • 1147069 2024-005
    Material Weakness Repeat
  • 1147070 2024-005
    Material Weakness Repeat
  • 1147071 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.914 Hiv Emergency Relief Project Grants $6.69M
93.600 Head Start $5.05M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $4.37M
97.042 Emergency Management Performance Grants $2.86M
93.568 Low-Income Home Energy Assistance $1.67M
21.023 Emergency Rental Assistance Program $1.61M
93.563 Child Support Services $1.35M
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $1.24M
10.558 Child and Adult Care Food Program $1.20M
97.044 Assistance to Firefighters Grant $672,000
93.569 Community Services Block Grant $522,627
14.231 Emergency Solutions Grant Program $433,505
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $420,407
20.616 National Priority Safety Programs $355,443
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $352,504
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $289,083
87.052 Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program $214,940
93.052 National Family Caregiver Support, Title Iii, Part E $201,405
14.239 Home Investment Partnerships Program $189,276
20.600 State and Community Highway Safety $167,566
97.091 Homeland Security Biowatch Program $167,358
16.738 Edward Byrne Memorial Justice Assistance Grant Program $164,085
16.585 Treatment Court Discretionary Grant Program $139,333
16.043 Veterans Treatment Court Discretionary Grant Program $131,295
16.582 Crime Victim Assistance/discretionary Grants $109,902
21.032 Local Assistance and Tribal Consistency Fund $89,769
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $87,982
95.001 High Intensity Drug Trafficking Areas Program $81,437
97.039 Hazard Mitigation Grant $73,621
21.027 Coronavirus State and Local Fiscal Recovery Funds $72,553
59.037 Small Business Development Centers $70,617
97.056 Port Security Grant Program $59,373
97.067 Homeland Security Grant Program $56,252
16.036 Comprehensive Forensic Dna Analysis Grant Program $41,946
93.658 Foster Care Title IV-E $41,420
15.945 Cooperative Research and Training Programs – Resources of the National Park System $39,722
93.499 Low Income Household Water Assistance Program $30,108
20.205 Highway Planning and Construction $14,417
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $3,161
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $2,072
66.130 Geographic Programs - Gulf Coast Ecosystem Restoration Council Comprehensive Plan Component $2,058
10.555 National School Lunch Program $1,195
14.218 Community Development Block Grants/entitlement Grants $865
66.001 Air Pollution Control Program Support $325