City of Margate, FL

United States Department of Housing and Urban Development - Community Development Block Grants / Entitlement Grants (?CDBG?) - CFDA 14.218 Significant Deficiency 2019-01: Subrecipient Monitoring: Condition and Criteria: The City entered into an interlocal agreement with Broward County to assist in preparing, implementing and administering the City?s CDBG grants. It was noted that although the City indicated it conducted an on-site monitoring of the County, there was no documentation to support it. Cause: The City did not have any documentation to support the on-site monitoring conducted. Effect: Without proper documentation of monitoring results there is a risk that the County might not be notified of noncompliance findings and correct them in a timely manner. Recommendation: The City should develop and implement policies and procedures to ensure that the City conducts and documents on-site monitoring. In addition, policies should include proper communication of monitoring results with subrecipients to allow for timely corrections. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the finding and the recommended procedures have been implemented.

CITY OF MARGATE 5790 MARGATE BOULEVARD MARGATE, FL 33063 CORRECTIVE ACTION PLAN February 24, 2020 U.S. Department of Housing and Urban Development City of Margate, Florida respectfully submits the following corrective action plan for the year ended September 30, 2019. Keefe McCullough 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Audit Period: September 30, 2019 The finding from the September 30, 2019 schedule of findings and questioned costs is discussed below. The finding is numbered consistent with the number assigned in the schedule. FINDINGS - FEDERAL SINGLE AUDIT Finding number 2019-01 discussed below is applicable under this section. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS PROGRAM AUDIT 2019-01: United States Department of Housing and Urban Development - Community Development Block Grants / Entitlement Grants (?CDBG?) - CFDA 14.218 Condition and Criteria: The City entered into an interlocal agreement with Broward County to assist in preparing, implementing and administering the City?s CDBG grants. It was noted that although the City indicated it conducted an on-site monitoring of the County, there was no documentation to support it. Cause: The City did not have any documentation to support the on-site monitoring conducted. Effect: Without proper documentation of monitoring results there is a risk that the County might not be notified of noncompliance findings and correct them in a timely manner. Recommendation: The City should develop and implement policies and procedures to ensure that the City conducts and documents on-site monitoring. In addition, policies should include proper communication of monitoring results with subrecipients to allow for timely corrections. Corrective Action Plan: The City has implemented a "Grant Monitoring Plan" detailing the scope of monitoring, monitoring procedures, monitoring schedule, monitoring components, and non-compliance/corrective action. This plan will be used to ensure compliance with all regulations and requirements governing administrative, financial, and programmatic operations related to the CDBG grants. The plan specifically addresses the method of communication via a monitoring letter within 30 days following the review. In addition, the City has implemented a policy for "Processing Grant Funded Reimbursement Requests from Broward County" which details the steps for reimbursement approval. All expenditures will be reviewed to ensure they are eligible, properly documented consistent with programmatic rules and are tied to an eligible activity prior to authorizing reimbursement. Any items noted during this review will be either followed-up with an email or a phone call. This is one of the informal ways that the City monitors the County. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Cale Curtis at 954-935-5308 or email at citymanager@margatefl.com. Sincerely yours, Cale Curtis City Manager