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• • • CITY OF HALLANDALE BEACH, FLORIDA • • SCHEDULE OF FINDINGS AND QUESTIONED COSTS • FOR THE YEAR ENDED SEPTEMBER 30, 2014 • • • SECTION II-FINANCIAL STATEMENT FINDINGS(CONTINUED) • Material Weaknesses (continued) • ® 1014-003 Grant Administration (continued) ® Cause • • Lack of communication between the finance department and program managers to ensure they • adhere to accounting policies related to compliance and financial reporting standards and lack of • a reconciliation and review process by the Finance Department of grant activity tracking schedules prepared by program managers. • • Effect • The expenditures reported on the SEFA were understated by approximately $422,000 (see page • 5 and noncompliance finding number 2014-004). The grant was not properly administered and • accounted for and not in compliance with terms stipulated by the granting agencies which ® ultimately may result in loss of funding. In addition, with the SEFA not being accurate, an improper determination by the auditor of major programs is at risk. • • Recommendation • We recommend that the Finance Department implement centralized financial controls and • procedures to ensure that information reported to the grantor is accurate, complete, agrees to the • underlying records and is prepared in accordance with OMB Circular A-133. ® Views of Responsible Officials and Planned Corrective Action • Acknowledged. Grant administration and review to ensure accounting policies compliance and • financial reporting is a function of the Finance Department. Due to staff turnover, the current • skeleton staff in Finance was unable to reconcile and review the grants as required in a timely manner. The periodic review and reporting process was left to the program managers whose • grants are located in several departments throughout the City. The Finance Department has • requested a.Senior Accountant position in the next budget cycle. One of the major duties of the • Senior Accountant will be to ensure that information reported to the grantor by the program managers is accurate. timely and in compliance with the grant agreement. This review process • by the Senior Accountant and the program managers shall be done on a quarterly basis, or more • often if needed, thereby addressing any issues or adjustments throughout the year before the • year-end audit. • • • 14 • •