Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Audit Report 2014-3 Collier County Airport Authority - Campground
InternalAuditDepartment AuditReport2014-3 CollierCountyAirportAuthority Campground(RVPark) DwightE.Brock ClerkoftheCircuitCourt 3299TamiamiTrailEast Suite#402 Naples,FL34112-5746 www.collierclerk.com Issued:February20,2014 1 Preparedby:MeganGaillard,SeniorInternalAuditor ReportDistribution:CollierCountyAirportAuthority(CCAA) LeoOchs,Jr.,CountyManager MarkIsackson,DirectorofCorporate,Financial,&ManagementServices JeffKlatzkow,CountyAttorney NickCasalanguida,GrowthManagementDivisionAdministrator GeneShue,GrowthManagementDirectorofOperationsSupport Cc:DwightE.Brock,ClerkoftheCircuitCourt CrystalK.Kinzel,DirectorofFinance&Accounting DaleW.Phillips,InternalAuditManager TABLEOFCONTENTS SUMMARY..................................................................................................................................2 OBJECTIVE.................................................................................................................................3 SCOPE..........................................................................................................................................3 BACKGROUND..........................................................................................................................4 OBSERVATIONS,RECOMMENDATIONS,&MANAGEMENTRESPONSES...................6 CONCLUSION.............................................................................................................................9 ADDITIONALMANAGEMENTCOMMENTS........................................................................9 EXHIBITA–AERIALPHOTOGRAPHSOFCAMPGROUND–COLLIERCOUNTY PROPERTYAPPRAISER.........................................................................................................10 EXHIBITB–FIELDWORKPHOTOGRAPHS.......................................................................21 EXHIBITC–MANAGEMENTTIMELINE............................................................................24 Thefilesanddraftversionsofauditreportsremainconfidentialandprotectedfrompublicrecordsrequests duringanactiveauditunder Nicolaiv.Baldwin(Aug.28,1998DCAofFL,5 th District)andFlorida Statute119.0713.Work-paperssupportingtheobservationsnotedwithinthisreportwillbecomepublic recordandcanbemadeavailableuponrequestoncethefinalauditreporthasbeenissued. 2 ThedraftauditreportwasinitiallyreviewedwiththeDepartmentonNovember22,2013andwasreleasedtothe DepartmentforManagementResponseonNovember22,2013.TheGrowthManagementDivisionAdministrator providedthemanagementresponsesonJanuary3,2014. Summary Theprojectwas94%completedatthetimeofthegrantterminationwiththecampground/RVsitesbeing approximately90%completedwiththebathhousenotcompletedbasedonthefinalclose-outdocumentation submittedtothegrantoragency.Aterminationforconvenienceoccurredfortheproject;however,thetermination forconveniencedoesnotremovethefederalrequirements,includingtheapprovalprocessesfordisposalofassets paidforwithfederalgrantmonies. Thecampground/RVsitesweredevelopedandpaidforwithgrantmonieswithaninitialestimatedlifeof20years. Thelifeexpectancyfortheassetwasnotmetpriortoremovalofthecampground/RVsites.Thegrantordidnot provideapprovalfordisposaloftheassetoruseoftheassetforadifferentuse,asrequiredbythegrantagreement andtheCFR’s. Thefollowingobservationsweregeneratedduringthisreview: 1.Disposalofthecampground/RVsiteswasnotincompliancewithFederalrequirementsandthegrant agreement(ProperassetdisposaldocumentationwasnotsubmittedtothegrantoragencyorFinance). 2.Approximately$340,600wasspentforacampgroundfacilitythatwasneverputtotheintendeduseandwas dismantledwithinoneyearofcompletion. Allrequirementsofthegrantapplications,assurances,andagreementsshouldbemetorspecificallyaddressedat theterminationofagrantagreementand/orproject.Appropriatedisposalauthorityshouldbeclearintermination documentationand/orobtainedpriortoassetdisposal. Failuretocomplywithgrantorrequirementsmay:resultinauditfindings,jeopardizecurrentandfuturegrant funding;resultindisbarmentfromreceivinggrantfunding,requirerepaymentofgrantfunds,resultintermination ofthegrant,impactfuturegrantawards,and/orresultinliabilityfordamagesformisrepresentation. 3 Objective Theobjectiveofthereviewwastodeterminewhethertherewasmisappropriationofgrantfundsand/orCounty fundswithregardtotheRVPark(knownasthecampground)locatedattheImmokaleeRegionalAirport. Scope Thereviewconsistedof,butwasnotlimitedtothefollowingtasks: ReviewoftheEconomicDevelopmentAdministration(EDA)grantapplication,awardletter,grantagreement, grantamendments,grantassurances,andgrantattestations; ReviewofEDATerminationofConvenienceletter; ReviewofapplicableCodeofFederalRegulations(CFR’s); ReviewofBoardofCountyCommissionerExecutiveSummariesapplicabletotheEDAgrant; ReviewofapplicableCollierCountyAirportAuthorityResolutions; ReviewofapplicableCollierCountyAirportAuthorityMeetingMinutesandAgendaItems; ReviewofCollierCountyAirportAuthoritygrantfilesincludingpayrequests,designplans,andphotographs; ReviewofClerk’sFinanceandAccountingDepartmentgrantfiles; ReviewofClerk’sFinanceandAccountingDepartmentcapitalassetrecords; ReviewofCollierCountySiteDevelopmentApplication(SDP-2002-AR-3110)Project2002070057– “IndustrialParkDevelopmentCampground”; CollierCountyGrowthManagementDivision–recordsanddocumentationfortheIndustrialParkDevelopment Campground; Reviewofprojectcostclassifications/budget; Reviewofprojectworkorders; Observationofthecampground/RVPark; ReviewofCollierCountyPropertyAppraiseraerialphotographsoftheImmokaleeRegionalAirportand campground/RVParksite; Analyzationofphotographsandrecordsforpropertystatusandcondition; InterviewswithCollierCountyAirportAuthoritystaff; InterviewswithClerk’sFinanceandAccountingstaff;and Interviewswithcitizen. 4 Background OnJuly12,2000,theCollierCountyAirportAuthoritysubmittedarevisedgrantapplicationtotheEconomic DevelopmentAdministration(U.S.DepartmentofCommerce)requestingfundingforinfrastructureimprovements totheImmokaleeRegionalAirportconsistingofanERPpermit;constructionofroads,water,sewer,anddrainage infrastructure;stormwaterimprovements;constructionofpublicrestrooms;andconstructionofacampground.The totalprojectcostwas$1,553,500.00.Specificprojectandconstructioncomponentsincluded:extensionofAirpark Boulevard,IndustrialParksiteimprovements,AutomotiveSportsComplexsupportinfrastructureandpermit, sketchesandschematics,feasibilityanalysis,ERPpermit,restrooms(i.e.bathhouse),spectatorparking, campground,andprojectmasterplan.Thecampgroundconstructionestimatedcostwas$262,000.00andthepublic restroomsestimatedcostwas$75,000.00. Thefundingbreakdownfortheprojectcomponentsandconstructionwasasfollows:$1,078,500.00fromtheEDA grant,$280,000.00fromtheFloridaDepartmentofTransportation(FDOT),and$195,000.00fromtheBoardof CountyCommissioners.Thetotalprojectcostwasestimatedat$1,553,500.00. OnAugust14,2000,theCollierCountyAirportAuthoritywasawardedanEconomicDevelopmentAdministration (EDA)grantfor$1,078,500.00number04-01-04619fortheImmokaleeRegionalAirportincludingarchitectural, engineering,andconstructioncostsforIndustrialParkInfrastructureImprovements.Infrastructureimprovements includedextensionofAirparkBoulevard,utilities,raisingthegradeofindustrialsites,constructionofmotorsport spectatorparking,drainageimprovements,constructionofpublicrestrooms,andconstructionofacampground.The estimatedusefullifefortheinfrastructureandassetswas20years. TheEDAgrantawardrequiredcompliancewiththeU.S.DepartmentofCommerceFinancialAssistanceStandard TermsandConditions.TheStandardTermsandConditionsprovideremedyforunsatisfactoryperformancethrough “terminationforconvenience”.Toterminateforconvenience,boththerecipientandthegovernment(i.e.grantor agency)agreethatcontinuationoftheprojectwouldnotproducebeneficialresultscommensuratewiththefurther expenditureoffunds;boththerecipientandthegovernment(i.e.grantoragency)agreeuponthetermination conditions,includingtheeffectivedate,andinthecaseofpartialtermination,theportiontobeterminated;andthe recipientagreestoincurnonewobligationsfortheterminatedportionaftertheeffectivedateandtocancelor satisfyalloutstandingobligationsasofthatdate. TheEDAgrantaward/agreementincludedspecialconditionsaspartoftherequirementsfortheCCAAreceiving fundingfortheproject.Specialcondition#10–PropertyManagementStandardsrequire“InaffirmingthisAward, theRecipientacknowledgesitsresponsibilitytousetherealpropertyacquiredorimprovedbythisAward…onlyfor theauthorizedandspecificpurposeofanindustrialpark…Thesalesagreementsanddeedofconveyanceshall includeacovenantprohibitingtheuseofthepropertyforanypurposeotherthanthegeneralandspecialpurposeof thegrantasapproved.” TheawardperiodwasfromAugust14,2000(thedateoftheawardapproval)to19monthsaftertheaward approval.Theinitialestimatewasfourmonthsfordesignworkandeightmonthsforconstruction.Accordingtothe initialawardletter,constructionwastostartpriortoFebruary14,2001andbecompletedbyFebruary14,2002. TheCCAAsubmittedthefirsttimeextensionrequesttotheU.S.DepartmentofCommercetoextendthestartof constructiontoNovember14,2001withcompletionofconstructionbeingnolaterthanFebruary14,2003.The U.S.DepartmentofCommerceapprovedtheextensionofconstructionfortheEDAgrant.Thesecondtime extensionwassubmittedtoextendthecompletiondatetoOctober14,2003.Constructionwasnotcompletedby October14,2003.Theremainingaspectoftheprojectthathadnotbeencompletedwasthebathhouseonthe campground.TheU.S.DepartmentofCommerceapprovedtheextensionofconstructionfortheEDAgrant.Athird timeextensionwassubmittedbecauseoftimedelaysregardingthebathhouse.Theextensionwasdeniedbythe U.S.DepartmentofCommerce.Instead,itwasrecommendedthattheCCAA“terminateforconvenience”. Terminationforconveniencewhen100%ofgrantfundsarereceiveddoesnotremovethespecialgrantprovisions/ assuranceswhichwouldrequiretheCCAAtomaintaintheassetsobtainedusinggrantfunding. 5 OnDecember23,2003,thegrantwasterminatedbecauseofunavoidabledelaysforcompletionoftheinfrastructure improvements.TheEDAagreedtoreimbursethelowerof72.44%or$1,078,500.00,theamountnottoexceed $1,078,500.00.ThetotalcostsincurredthroughDecember23,2003were$1,605,726.00,whichallowedforthe maximumcaptobereimbursedfromthefederalshareofthegrant.Thefinalpaymentrequestindicatedtheproject was94%completeatthetimeofterminationwiththecampgroundbeingapproximately90%completedbasedon thefinalclose-outdocumentationsubmittedtothegrantoragency. OnJanuary12,2004,theCCAAvotedtoterminatetheEDAgrantforconvenience. OnFebruary10,2004,duringtheBCCmeetingagendaitem14A,thesuspensionandterminationwasacceptedby theBCC. OnMarch8,2004,an“OffertoTerminateGrantAgreement”forconveniencewasacceptedbytheCCAA.The OffertoTerminateGrantAgreementforconvenienceindicated“thepartieshavenowdeterminedthatitisnot feasibletocompletethisinvestmentasoriginallyintended…andtheGrantAgreementterminatedforconvenience oftheparties…” BasedonCollierCountyPropertyAppraiseraerialimagesoftheImmokaleeRegionalAirportcampgroundsitein 2005,itappearsthebathhouse,walkways,RVsites,androadwayswerecompleted.Betweentheendof2005and 2006thesevenouterRVsites/padswerepartiallyremoved(eastofthemaincampground).Between2006and 2007,itappearsthecampgroundhadbeensignificantlydisruptedandmanyoftheRVsites/padswereremoved. Thebathhousewasremovedfromthecampgroundandrelocatedalongsideofthedragstrip/racetrack.Between 2007and2008,theRVsites/padswerecompletelyremovedandpartoftheinterioraccessroadwayhadbeen removed.In2009,thecampgroundwasstagedwithnumerousdisposalcontainersunrelatedtothecampground.In 2010,theremainsfromtheoriginalcampgroundincludetheinteriorlooproadway,lesstheportionthatisnolonger paved(areainfrontofwherethebathhousewaslocated).Between2011and2013,therewerenoapparent additionalchangestothecampground. In2011,InternalAuditcompletedsitevisitstoobservethecampground.Theformercampgroundhadfirehydrants, concretesidewalks,andcurbing.Therewerenoutilitystubs/nowaterhook-ups.Thecampground(aboveground) improvementsweremostlydismantledandconcretepadswerenolongerpresent.Itwasnotedunlikelythe bathhousehadasewerpipetohook-uptothesewer. In2012,InternalAuditcompletedanadditionalsitevisittoobservethecampgroundwhichhadbeendismantled. Theformercampground(aboveground)androadwaywereovergrownwithtreesandvegetation. 6 Observations 1)Disposalofthecampground/RVsiteswasnotincompliancewithFederalrequirements andthegrantagreement. BasedonCollierCountyPropertyAppraiseraerialphotographs,thecampground/RVsiteswereremovedbetween 2005and2007.Theinterioraccessroadappearstohavebeenleftpartiallyintact(ReferenceExhibitAforaerial photographs ). TheEconomicDevelopmentAdministration(EDA)grantagreementStandardForm424Dindicatestheapplicant “Willnotdisposeof,modifyuseof,orchangethetermsoftherealpropertytitle,orotherinterestinthesiteand facilitieswithoutpermissionandinstructionsfromtheawardingagency.”Airportstaffwasunabletoprovide documentationindicatingthegrantoragencyapproveddestructionofthecampground/RVsites.Airportstaff providedtheOffertoTerminateGrantAgreementfromtheEDAallowingthegrantagreementtobeterminatedfor convenience.Theletterdidnotcontainaprovisionorspecialinstructionsindicatingthecampground/RVsites couldberemovedoruseofthefacilitymodified. 15CFR24SubpartC20(b)(3)requiresthe“Grantees…mustadequatelysafeguardallsuchpropertyandmust assurethatitisusedsolelyforauthorizedpurposes.”15CFR24SubpartC31(b)requires“Use .Exceptas otherwiseprovidedbyFederalstatutesrealpropertywillbeusedfortheoriginallyauthorizedpurposesaslongas neededforthatpurposes,andthegrantee…shallnotdisposeoforencumberitstitleorotherinterests.”Itdoesnot appearthedestruction/removalofthecampground/RVsiteswastheintendedpurposeoftheprojectwhenthe campground/RVsiteshadanestimatedusefullifeof20years.Grantfundswerenotreturnedtothegrantoragency uponterminationofthegrantagreementindicatingtheimprovementscompletedwithgrantfundingwouldneedto complywiththegrantagreementrequirementsorthegrantoragencyshouldhaveprovidedawaiver. 13CFR314.4(a)indicatestheFederalGovernment(EDA)mustbecompensatedbytheRecipientfortheFederal Share,whenever,duringtheestimatedusefullifeoftheproject,anypropertyacquiredorimprovedinwholeorin partisdisposedof,encumbered,ornolongerusedforthepurposeoftheproject. TheU.S.DepartmentofCommerceEconomicDevelopmentAdministrationStandardTermsandConditions SectionK4(b)crequires“TheRecipientagreesthatintheeventitdisposesof,oralienatesinanymannerany interestin,thepropertyduringitsusefullife,withouttheEDA’swrittenapproval,theGovernmentwillbeentitled torecovertheDeferralshareofthevalueoftheproperty.Whenduringitsusefullifepropertyisnolongerneeded forthepurposeoftheAward,asdeterminedbyEDA,EDAmaypermititsuseforotheracceptablepurposes consistentwiththoseauthorizedforsupportbyEDA.”Thecampground/RVsitesweredisposedofduringits usefullife.TheCountywasunabletoprovidedocumentationfromtheEDAapprovingthedisposalofthe campgroundinfrastructureorallowingotherusesfortheproperty. 2CFR215.61(b)(previouslyOMBCircularA-110)indicatesifcostsareallowedunderanaward,the responsibilitiesoftherecipient…includingthoseforpropertymanagementasapplicable,shallbeconsideredinthe terminationoftheaward,andprovisionshallbemadeforcontinuingresponsibilitiesoftherecipientafter termination,asappropriate.”Theletterforterminationofconvenienceprovidedbythegrantoragencydidnot includespecialinstructionsindicatingtheasset(i.e.campground/RVsites)couldbedisposedorthecontinuing responsibilities,soitappearstheinitialgranttermsmayremainineffect(i.e.usefullifeof20years).The terminationforconvenienceletterdidnotprovideawaiverfortheassetmaintenanceand/orretentionrequirements indicatingtheCountymaynotbeincompliancewithfederalrequirementswhenthecampground/RVsiteswere dismantledanddisposed.Withoutgrantorapproval,theCountydoesnotappeartohaveauthoritytodisposeofthe assetsobtainedwithfederalgrantmoney. 7 Recommendations: TheCountyshouldworkwiththeU.S.DepartmentofCommercetodetermineiftherewerecontinuing responsibilitiesfortheproject. TheCountyshouldcomplywiththeCodeofFederalRegulations(CFR’s),grantagreements,andgrant assurances. Whenassetsand/orinfrastructurearepaidforthroughgrantfundingthendisposed,theCountyshouldreceive approvalfromthegrantoragenciespriortodisposal. TheCountyshouldproperlymonitorassetsandsubmittheappropriatedocumentstoproperlyrecordchangesto assets. CountyManagementResponse : “Thecountywillworkwiththegrantor,USDeptofCommerce(USDC),todeveloparesolutiontotheauditfinding regardingdismantlingportionsofthecampgroundarea. TheAirportAuthoritywillnotdisposeofanyproperty,regardlessofwhetheritwaspurchasedwithgrantfundsor countydollars,withoutfollowingtheproperprocessinthefuturetoensurecompliancewithanyapplicable regulationswhichincludeCFRs,agreementsandassurances. Staffagreespermissionfromthegrantoragencytodisposeofanypropertyacquiredwithgrantfundsshallrequire approvalbeforedisposition.Thisprocedurewillbeproperlyfollowedinthefuture. Theairportmanagersunderstandtheimplicationsofalsobeingpropertyofficers,inaccordancewithCMA5809, andwilldiligentlymonitorpropertyandfillouttheproperpaperworkforanynecessarytransfersordisposalsof countyassets.” 2)Approximately$340,600wasspentforacampgroundfacilitythatwasneverputtothe intendeduseandwasdismantledwithinoneyearofcompletion. OnAugust14,2000,theCollierCountyAirportAuthority(CCAA)wasawardedanU.S.DepartmentofCommerce EconomicDevelopmentAdministration(EDA)grantfor$1,078,500.00number04-01-04619fortheImmokalee RegionalAirportincludingarchitectural,engineering,andconstructioncostsforIndustrialParkInfrastructure Improvements.InfrastructureimprovementsincludedextensionofAirparkBoulevard,utilities,raisingthegradeof industrialsites,constructionofmotorsportspectatorparking,drainageimprovements,constructionofpublic restrooms,andconstructionofacampground.Theestimatedusefullifefortheinfrastructureandassetswas20 years.Thetotalestimatedcostoftheprojectwas$1,553,500.00includingaFDOTgrantandaCountymatch. WhentheEDAgrantwasterminatedforconvenience,theconstructionfortheentireprojectwasapproximately 94%completewiththecampground/RVsitesportionbeing90%completebasedonthefinalclose-out documentationsubmittedtothegrantoragency.Thebathhousewastheportionofthecampgroundnotcompletedat thetimeofterminationoftheEDAgrant.TheassetwasrecordedwithFinanceonApril30,2006with$94,285.13 beingfortherestroom/bathhouseand$1,131,441.17fortheAirparkBoulevardExtensionandcampground/RV sites.BasedonpaymentrequestsandinformationprovidedbyCCAAstaff,theestimatedcostforconstructionof thecampground/RVsitesisapproximately$340,657.72.TheEDAportionofthecampground/RVsitescostis approximately$246,772.45.Thecampground/RVsiteswereneverputtoitsintendeduseandweredemolished between2005and2010. TheAugust14,2000EDAgrantagreementincludedspecialconditionsaspartoftherequirementsfortheCCAA receivingfundingfortheproject.Specialcondition#10–PropertyManagementStandardsrequire“Inaffirming thisAward,theRecipientacknowledgesitsresponsibilitytousetherealpropertyacquiredorimprovedbythis Award…onlyfortheauthorizedandspecificpurposeofanindustrialpark…Thesalesagreementsanddeedof conveyanceshallincludeacovenantprohibitingtheuseofthepropertyforanypurposeotherthanthegeneraland specialpurposeofthegrantasapproved…”Thespecialconditionindicatesthecampground/RVsitesshouldhave beenusedasacampgroundfacilityfortheestimatedusefullifeof20years. 8 2CFR215.61(b)(previouslyOMBCircularA-110)indicatesifcostsareallowedunderanaward,the responsibilitiesoftherecipient…includingthoseforpropertymanagementasapplicable,shallbeconsideredinthe terminationoftheaward,andprovisionshallbemadeforcontinuingresponsibilitiesoftherecipientafter termination,asappropriate.”Theletterforterminationofconvenienceprovidedbythegrantoragencydidnot includespecialinstructionsindicatingtheasset(i.e.campground/RVsites)couldbedisposedorcontinuing responsibilities.Itappearstheinitialgranttermsmayhaveremainedineffectfortheestimatedusefullifeofthe asset(i.e.usefullifeof20years).Theterminationforconvenienceletterdidnotprovideawaiverfortheasset. TheCCAAreceivedandusedgrantfundstoconstructthecampgroundfacilityanddidnotreturnthefundsupon terminationforconvenience,indicatingtheoriginaltermsofthegrantagreementwouldapplytotheassets constructedwithgrantfunds.Theterminationforconveniencedidnotincludeawaiverorspecialinstructionsfor disposaloftheasset.TheCCAAwasunabletoprovidedocumentationindicatingtheEDAapproveddestructionof thecampground.Bydismantlingthecampground/RVsites,theCCAAmaybeliabletoreimbursethegrantor agencyforfundsusedforthisportionoftheproject. Recommendations: TheCountyshouldworkwiththeU.S.DepartmentofCommercetodetermineiftheCountyhasfurther obligationsunderthegrantagreement.TheCountyshouldobtainawaiverforthecampground/RVPark requirements. TheCountyshouldmonitorcapitalprojectstoensuretheappropriateassetsarerecorded. TheCountyshouldprovideFinancewiththeappropriatepaperworktoreducetheasset’srecordedvalue. CountyManagementResponse : “ThecountyhasmadecontactwitharepresentativeattheAtlantaofficeoftheEDAandwillcontinuetoworkwith thegrantorontheresolutiontothisfinding.Thebathhousehasbeenrelocatedtotheracetrackareaofthe airport,whereitiscurrentlyinuse;StaffwillalsorequestapprovalfromtheUSDC/EDAoftherelocationofthat asset. Regardlessofwhetherthegrantorapprovesthedisposalofthecampgroundasset,asuggestedwrite-downwillbe forwardedtoFinanceforconsiderationofanadjustmenttothevalueoftheassetrecordonceitisfullyanalyzed. TheairportmanagersunderstandtheimplicationsofalsobeingpropertyofficersinaccordancewithCMA5809 andwillmonitorassetsandfillouttheproperpaperworkforanynecessarytransfersordisposalsofcountyassets.” 9 Conclusion Thecampground/RVsiteswereconstructedandpaidforusinggrantmonies.Theassethadaninitialestimatedlife of20years.Federalrequirementsrequiredtheassettobeusedandmaintainedasacampground/RVsitefor20 years.Thegrantagreementwas“terminatedforconvenience”withoutaddressingcontinuedgrantrequirements.The campground/RVsiteswereimproperlydisposedwithoutapprovalfromthegrantoragency.TheCCAAdidnot notifyFinancewhendisposaloccurredorcompletetheappropriatepaperworkfordisposaltoremovetheassetfrom theCountyrecords. Allrequirementsofthegrantapplications,assurances,andagreementsshouldbemetorspecificallyaddressedat theterminationofagrantagreementand/orproject.Appropriatedisposalauthorityshouldbeclearintermination documentationand/orobtainedpriortoassetdisposal. Failuretocomplywithgrantorrequirementsmay:resultinauditfindings,jeopardizecurrentandfuturegrant funding;resultindisbarmentfromreceivinggrantfunding,requirerepaymentofgrantfunds,resultintermination ofthegrant,impactfuturegrantawards,and/orresultinliabilityfordamagesformisrepresentation. Auditsdonotrelievemanagementoftheirresponsibilities.ItistheresponsibilityofCountymanagementto understandandimplementtheproperproceduralcontrolsinordertoreduceandlimittheriskoffraud,error,and misappropriationofCountyassets.InternalAuditmayrecommendimprovementsinauditreports,butultimatelyit isthedutyanddecisionofCountymanagementtoformulateprocessesandcontrolsthatensurecompliancewith Federalregulation,Statestatute,Countyordinance,andCountypolicies. Recommendation: TheCountyshouldproperlymonitorgrantassetstoensurecompliancewithfederalrequirements. TheCountyshouldcompletetheappropriatepaperworkwhendisposingofanassettoensureassetsareproperly recorded. TheCountyshouldreviewtheFDOTgrantforcompliance.TheCountyshouldworkwiththeFDOTto determineiftheCountyhasfurtherobligationsunderthegrant. AdditionalCountyManagementComments: “WiththemergeroftheAirportAuthorityintotheGrowthManagementDivision,theAuthorityhasamorerobust supportsysteminrelationtograntsmanagementaswellasmonitoringofcountyapprovedpoliciesandprocedures (whichincludeproperlymonitoringandsafeguardingofassets).Capitalassetshaverecentlybeen100%physically inspectedbyGMDstaff(unrelatedtoairportoperations)toensureanindependentvalidationofassetrecordsfor thecostcenterdirectorchange. StaffwillreviewthegrantrequirementsandworkwiththeproperrepresentativesattheFloridaDepartmentof Transportationtoresolveanyoutstandingauditconcerns. StafflooksforwardtoremediatingthesefindingsandwillworkwiththeClerk’sOfficeonthecorrectionsand keepingtheproperpartiesnotifiedofcommunicationsfromthegrantor.” InternalAuditComments : InternalAuditgratefullyacknowledgesthecooperationandassistancefromCountystaff.Theassistanceand responsesprovidedbythedivisiongreatlyassistedintheauditprocessforthereview. 10 11 Summary:Drainageditchandroadworkextendparalleltothecampgroundsite.17RVsiteswithpadswerecompleted. Theinteriorandentranceroadwayswereinstalled.Thecampgroundisapproximately90%completed.Thebathhouseis notcompleted. ImmokaleeRegionalAirport–2004 CollierCountyPropertyAppraiser–AerialImage 12 Summary:Thebathhousewascompleted. ImmokaleeRegionalAirport–2005 CollierCountyPropertyAppraiser–AerialImage Bathhouse 13 Summary:TheouterRVsiteswerepartiallyremoved.Nootherapparentchangestothecampground. ImmokaleeRegionalAirport–2006 CollierCountyPropertyAppraiser–AerialImage Dismantled RVSites 14 Summary:ThecampgroundhasbeensignificantlydisruptedwithmanyoftheRVsitesremoved/dismantled.The bathhousewasremovedfromthecampgroundandrelocatedalongsideofthedragstrip/racetrack. ImmokaleeRegionalAirport–2007 CollierCountyPropertyAppraiser–AerialImage Bathhouse Removed 15 Summary:Thecampground(aboveground)wasfullydismantledwithallRVsitesremoved.Aportionoftheinterior roadwaywasremoved. ImmokaleeRegionalAirport–2008 CollierCountyPropertyAppraiser–AerialImage Roadway Removed 16 Summary:Thecampgroundisstagedwithnumerouscontainersunrelatedtothecampground.Nootherapparent changestothecampground. ImmokaleeRegionalAirport–2009 CollierCountyPropertyAppraiser–AerialImage 17 Summary:Noapparentadditionalchangestothecampground. ImmokaleeRegionalAirport–2010 CollierCountyPropertyAppraiser–AerialImage 18 Summary:Noapparentadditionalchangestothecampground. ImmokaleeRegionalAirport–2011 CollierCountyPropertyAppraiser–AerialImage 19 Summary:Noapparentadditionalchangestothecampground. ImmokaleeRegionalAirport–2012 CollierCountyPropertyAppraiser–AerialImage 20 Summary:Noapparentadditionalchangestothecampground. ImmokaleeRegionalAirport–2013 CollierCountyPropertyAppraiser–AerialImage 21 22 ImmokaleeRegionalAirport-12/21/2012 FieldworkPhotographsforInteriorRoad-Overgrown 23 24 25 ManagementTimeline ExecutiveAirport Director Starting Ending Notes JohnDrury1994 Approx.September2002 BobTweedieOctober2002 May2003 Interim GeneSchmidtMay2003 December2004 TeresaCookDecember2004 December2009 DebraBrueggermanDecember2009 May2010 Interim PennyPhillippiMay2010 September2010 Interim ThomasChrisCurrySeptember2010 September2013