Sarasota County Comprehensive Annual Financial Report 2019

SARASOTA COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2019 386 SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL PROGRAMS (continued) 2019-002-Allowable Costs and Activities, General 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 § 206.228, eligible direct costs for applicant- owned equipment can be charged as reimbursement for ownership and operation costs of applicant- owned equipment used to perform eligible work shall be provided in accordance with the following guidelines: (i) Rates established under State guidelines. In those cases where an applicant uses reasonable rates which have been established or approved under State guidelines, in its normal daily operations, reimbursement for applicant-owned equipment which has an hourly rate of $75 or less shall be based on such rates. Reimbursement for equipment which has an hourly rate in excess of $75 shall be determined on a case by case basis by FEMA. (ii) Rates established under local guidelines. Where local guidelines are used to establish equipment rates, reimbursement will be based on those rates or rates in a Schedule of Equipment Rates published by FEMA, whichever is lower. If an applicant certifies that its locally established rates do not reflect actual costs, reimbursement may be based on the FEMA Schedule of Equipment Rates, but the applicant will be expected to provide documentation if requested. If an applicant wishes to claim an equipment rate which exceeds the FEMA Schedule, it must document the basis for that rate and obtain FEMA approval of an alternate rate. Additionally, as described in 2 CFR, Part 200 § 200.333, financial records, supporting documents, statistical records and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three (3) years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or passthrough entity in the case of a sub-recipient. Condition: The County did not maintain records of applicant-owned equipment usage for expenditures charged to program. Questioned costs: Unknown Context: Of the 24 equipment usage logs selected for testing, the County was unable to provide one daily log supporting the usage of the equipment. Cause: The County did not maintain record of the equipment log.