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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) • • 2014-003 Grant Administration (continued) • Views of Responsible Officials and Planned Corrective Action (continued) • • In addition, the need to train program managers on the accounting policies related to compliance, ® as well as the use of the financial modules is duly noticed. Accordingly, training for all program managers is scheduled to take place to facilitate a better understanding of the grant process as it • relates to financial reporting. • ® SECTION III-FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS • Noncompliance e2014-004 Internal Control Over Preparation of the SEFA • Criteria • ® OMB Circular A-133 requires that the schedule of expenditures of federal awards (SEFA) agree or be reconciled to the financial statements and that the SEFA should be accurately prepared. • • Condition ® During our audit we identified a misallocation of program expenditures between the Hallandale Beach Community Redevelopment Agency (which accounts for the 25% local share match • requirement and should not be included on the SEFA) and the Grant Administration Fund (which • accounts for the activity associated with the 75% federal share that should be included on the • SEFA) in the amount of approximately $422.000. thus causing the SEFA to be inaccurate. • Cause 0 Lack of adequate internal control over compliance due to inadequate communication between the finance department and the program manager. • • Effect The expenditures reported on the SEFA were understated by approximately $422,000 which • could have resulted in non-compliance with OMB Circular A-133 had it not been identified by • the auditor (see grant administration finding number 2014-003). • 15 • •