Sarasota County Comprehensive Annual Financial Report 2019

SARASOTA COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2019 385 SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL PROGRAMS 2019-001-Allowable Costs and Activities, Payroll Disbursements Federal agency: U.S. Department of Homeland Security Federal program title: Disaster Grants – Public Assistance CFDA Number: 97.036 Pass-Through Agency: Florida Division of Emergency Management Pass-Through Number(s): 4337DRFLP0000001 Award Period: September 4, 2017 – March 10, 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matters Criteria or specific requirement: As described in 2 CFR § 200.430, (a) Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a nonFederal entity’s laws and/or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. Condition: The County reported expenditures related to compensation costs that were either not supported by the employee’s actual pay rate or supported by the employee time card. Additionally, the County did not maintain records supporting all compensation related expenditures. Questioned costs: Unknown Context: Of the 60 employee payrolls selected for testing, the County charged the incorrect regular wage rate for 5 employees and the incorrect overtime wage rate for 20 employees. Additionally, there was one employee payroll for which expenditures charged to the grant were in excess of the hours documented as worked. Cause: The County’s internal controls did not prevent or detect the error. Effect: Improper amounts were charged to the grant and thus noncompliance with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Repeat Finding: No Recommendation: We recommend the County review its internal control procedures and policies to ensure that costs incurred during a disaster are supportable and accurate before submission to the granting agency. Views of responsible officials: There is no disagreement with the audit finding.