FLAGLER COUNTY

Federal Award Allowable Activities and Cost Requirements Staffing for Adequate Fire and Emergency Response - Assistance Listing Number 97.083 Department of Homeland Security; Passed through Florida Division of Emergency Management Contract EMW-2019-FF-01480, 2022 Questioned costs - Known questioned costs of $9,301 were computed and reimbursed for payroll to fire fighters for unallowable hours and benefits. Criteria: Uniform Guidance requires non-Federal entities to establish effective internal controls to ensure compliance with Federal financial assistance programs. Condition: The County included unallowable activities/costs in quarterly reimbursement requests. Cause: The County's calculation for payroll reimbursement under the program included certain hours and benefits that were not allowable. Controls over allowable activities/costs did not prevent inclusion of the unallowable hours and benefits. Effect: Noncompliance with allowable activities and costs grant requirements. The County discovered the error during preparation of year-end reconciliation and deducted the previously reimbursed unallowable costs from the first reimbursement requests of the fiscal year 2022-2023. Recommendations: We recommended County personnel thoroughly review the details of award agreements including compliance requirements prior to the start of a new program to ensure compliance. Controls should be designed and effective to ensure compliance.

The Financial Services Department implemented a three‐step remedy which included working with the implementing department to insert their director as a review and approval step, improving tracking capabilities by amending internal reporting and documenting support, and changing reimbursement request submittals to a monthly schedule. As stated within the “Effect Section” of the finding, these actions have already been implemented. Contact Person – E. John Brower, Financial Services Director Completion Date – Already implemented

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