Agenda 11/18/2014 Item # 14A211/18/2014 14.A.2.
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the Collier County Airport
Authority, provide preliminary guidance and next steps to Staff in addressing the resolution of
Internal Audit Report 2014 -3 Collier County Airport Authority — Campground (RV Park).
OBJECTIVE: To obtain preliminary direction for next steps in clearing the findings issued by the
Clerk in Internal Audit Report 2014 -3 (Collier County Airport Authority — Campground/RV Park)
located at the Immokalee Regional Airport which included grant funds from the Economic
Development Administration and the Florida Department of Transportation (FDOT).
CONSIDERATIONS: The Clerk of Courts began a review of the Immokalee Regional Airport
Campground (RV Park) based on a reported citizen concern, regarding misappropriation of grant
funds and potential grant non - compliance. The audit report is attached as a reference to this item.
In June 2014, the campground concrete and limerock areas for the 17 parking spaces were located.
Reviewing photos found in public records, it was determined that some time close to the completion
of the campground construction project, the area was covered with soil; the reason is unknown to
current county Staff at this time. After light excavation was performed at the site by Staff, an
assessment of the asset condition concluded many areas were damaged, but concrete pads, parking
areas and sidewalk segments were located. The drainage pipes were cleaned, water function tested
and a general site review concluded the area could be brought back to usable condition with some
additional work.
Staff is now responsible for clearing the audit findings in a manner which is acceptable to both the
grantor agencies and the Board of County Commissioners. A representative from the EDA has urged
Staff to utilize the asset for the purpose it was originally intended in the grant application, however,
the following options are available to the BCC for consideration:
1) Abandon the campground assets.
This option has the following benefits, challenges and costs:
Benefits: a) no ongoing operational requirements.
Challenges: a) the audit findings would not be cleared in a manner acceptable to the grantor
agency, and b) an asset impairment would be recorded in the fiscal year 2015 accounting
records.
Costs: a) repayment to the grantor agency leaves the actual cost in question; it could range
from as little as the asset impairment all the way to repayment of the entire grant for the
original project, plus other fees and costs in accordance with the Grant agreement. This
amount could potentially exceed $1 million and jeopardize future grant opportunities from
the EDA.
2) Utilize the campground for the manner in which it was intended in the grant
application.
This option has the following benefits, challenges and costs:
Benefits: a) the grantor will be satisfied with the action, and b) internal audit findings will be
cleared.
Challenges: a) the Immokalee Airport Staff is not outfitted to operate a campground facility,
b) the bath house originally built in the campground location has been moved to the area of
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operations at the raceway, c) the rate schedule would require updating to reflect new fees, d)
a policy for length of stay, etc. would have to be drafted for further review by the BCC, and
e) the bath house has been relocated to a fenced in area near the raceway, therefore the bath
house may need to be moved back to the campground site.
Costs: estimates for: a) restoring the concrete assets to the condition at time of project close
out $16,000, b) additional security fence around the area $17,000, c) Sodding, mulching and
general site preparation $15,000, d) restore electrical hookups at each site $25,000, and e)
potential costs for relocating the bath house to the campground area $15,000.
3) Attempt a blended approach and work with a third -party to take over campground
operations.
This option has the following benefits, challenges and costs:
Benefits: a) no ongoing operational requirements, and b) additional concession revenue to the
airport (forecasted revenues would depend on daily rates set for camping and projected
occupancy).
Challenges: the county would have to: a) work out an agreement with another party to take
over this new function, and b) monitor the ongoing operations.
Costs: a) the same costs in option 2 would apply, offset by concessionaire revenues.
A letter of intent will be drafted, as requested by the EDA, after further direction is provided by the
BCC. FDOT will also be contacted for concurrence on the proposed action.
FISCAL IMPACT: Fiscal impact is undetermined at this time. Further direction from the BCC is
required to formulate the proper cost to resolve this issue.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. if the Board
prefers Option 1, such approval should be conditional as issues would need to be resolved with the
grantor agency. No legal issues are raised with respect to Option 2. If Option 3 is implemented it
should be with the consent of the grantor agencies. With that said, this item is approved as to form
in
and legality and requires majority vote for approval. -JAK
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with
this Executive Summary.
RECOMMENDATION: The BCC direct the County Manager or his designee to pursue Option 2
with the ultimate goal of implementing option 3 and adequately satisfy the outstanding audit
findings.
Prepared by: Allison Kearns, Financial & Operational Support Manager, Growth Management
Division
Attachment: 1) Internal Audit Report 2014 -3 2) Campground Presentation (Power Point slides)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 14.14.A.14.A.2.
Item Summary: Recommendation that the Board of County Commissioners, acting as the
Collier County Airport Authority, provide preliminary guidance and next steps to Staff in
addressing the resolution of Internal Audit Report 2014 -3 Collier County Airport Authority -
Campground (RV Park).
Meeting Date: 11/18/2014
Prepared By
Name: KearnsAllison
Title: Manager Financial & Operational Support, Transportation Administration
10/31/2014 3:51:37 PM
Submitted by
Title: Manager Financial & Operational Support, Transportation Administration
Name: KearnsAllison
10/31/2014 3:51:38 PM
Approved By
Name: LynchDiane
Title: Supervisor - Operations, Road Maintenance
Date: 11/3/2014 12:31:39 PM
Name: LynchDiane
Title: Supervisor - Operations, Road Maintenance
Date: 11 /7/2014 12:57:16 PM
Name: ShueGene
Title: Director - Operations Support, Transportation Administration
Date: 11 /l 0 /2014 11 :29:20 AM
Name: OberrathKaren
Title: Accountant, Senior, Grants Management Office
Date: l 1/10/2014 11:50:24 AM
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Name: CasalanguidaNick
Title: Administrator - Growth Management Div, Business Management & Budget Office
Date: l l /l 0/2014 12:00:25 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 11/10/2014 1:26:19 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 11/l0 /2014 2:38:52 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mngmt Svs, Office of Management & Budget
Date: 1 1/] 1/2014 11:25:51 AM
Name: FinnEd
Title: Management/Budget Analyst, Senior, Transportation Engineering & Construction Management
Date: 11/12/2014 10:55:16 AM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: l 1/] 2/2014 12:36:52 PM
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�M 11cJ Internal Audit Department
�qE
Audit Report 2014 -3
Collier County Airport Authority
Campground (RV Park)
Issued: February 20, 2014
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Prepared by: Megan Gaillard, Senior Internal Auditor
Report Distribution: Collier County Airport Authority (CCAA)
Leo Ochs, Jr., County Manager
Mark Isackson, Director of Corporate, Financial, & Management Services
Jeff Klatzkow, County Attorney
Nick Casalanguida, Growth Management Division Administrator
Gene Shue, Growth Management Director of Operations Support
Cc: Dwight E. Brock, Clerk of the Circuit Court
Crystal K. Kinzel, Director of Finance & Accounting
Dale W. Phillips, Internal Audit Manager
TABLE OF CONTENTS
SUMMARY.................................................................................................... ..............................2
OBJECTIVE................................................................................................... ..............................3
SCOPE............................................................................................................ ..............................3
BACKGROUND............................................................................................ ..............................4
OBSERVATIONS, RECOMMENDATIONS, & MANAGEMENT RESPONSES ...................6
CONCLUSION............................................................................................... ..............................9
ADDITIONAL MANAGEMENT COMMENTS .......................................... ..............................9
EXHIBIT A — AERIAL PHOTOGRAPHS OF CAMPGROUND — COLLIER COUNTY
PROPERTY APPRAISER ............................................................................ .............................10
EXHIBIT B — FIELDWORK PHOTOGRAPHS .......................................... .............................21
EXHIBIT C — MANAGEMENT TIMELINE ............................................... .............................24
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The draft audit report was initially reviewed with the Department on November 22, 2013 and was released to the
Department for Management Response on November 22, 2013. The Growth Management Division Administrator
provided the management responses on January 3, 2014.
The project was 94% completed at the time of the grant termination with the campground / RV sites being
approximately 90% completed with the bathhouse not completed based on the final close -out documentation
submitted to the grantor agency. A termination for convenience occurred for the project; however, the termination
for convenience does not remove the federal requirements, including the approval processes for disposal of assets
paid for with federal grant monies.
The campground / RV sites were developed and paid for with grant monies with an initial estimated life of 20 years.
The life expectancy for the asset was not met prior to removal of the campground / RV sites. The grantor did not
provide approval for disposal of the asset or use of the asset for a different use, as required by the grant agreement
and the CFR's.
The following observations were generated during this review:
1. Disposal of the campground / RV sites was not in compliance with Federal requirements and the grant
agreement (Proper asset disposal documentation was not submitted to the grantor agency or Finance).
2. Approximately $340,600 was spent for a campground facility that was never put to the intended use and was
dismantled within one year of completion.
All requirements of the grant applications, assurances, and agreements should be met or specifically addressed at
the termination of a grant agreement and /or project. Appropriate disposal authority should be clear in termination
documentation and/or obtained prior to asset disposal.
Failure to comply with grantor requirements may: result in audit findings, jeopardize current and future grant
funding; result in disbarment from receiving grant funding, require repayment of grant funds, result in termination
of the grant, impact future grant awards, and /or result in liability for damages for misrepresentation.
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O
The objective of the review was to determine whether there was misappropriation of grant funds and/or County
funds with regard to the RV Park (known as the campground) located at the Immokalee Regional Airport.
The review consisted of, but was not limited to the following tasks:
• Review of the Economic Development Administration (EDA) grant application, award letter, grant agreement,
grant amendments, grant assurances, and grant attestations;
• Review of EDA Termination of Convenience letter;
• Review of applicable Code of Federal Regulations (CFR's);
• Review of Board of County Commissioner Executive Summaries applicable to the EDA grant;
• Review of applicable Collier County Airport Authority Resolutions;
• Review of applicable Collier County Airport Authority Meeting Minutes and Agenda Items;
• Review of Collier County Airport Authority grant files including pay requests, design plans, and photographs;
• Review of Clerk's Finance and Accounting Department grant files;
• Review of Clerk's Finance and Accounting Department capital asset records;
• Review of Collier County Site Development Application (SDP- 2002 -AR -3110) Project 2002070057 —
"Industrial Park Development Campground ";
• Collier County Growth Management Division — records and documentation for the Industrial Park Development
Campground;
• Review of project cost classifications / budget;
• Review of project work orders;
• Observation of the campground / RV Park;
• Review of Collier County Property Appraiser aerial photographs of the Immokalee Regional Airport and
campground / RV Park site;
• Analyzation of photographs and records for property status and condition;
• Interviews with Collier County Airport Authority staff,
• Interviews with Clerk's Finance and Accounting staff, and
• Interviews with citizen.
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On July 12, 2000, the Collier County Airport Authority submitted a revised grant application to the Economic
Development Administration (U.S. Department of Commerce) requesting funding for infrastructure improvements
to the Immokalee Regional Airport consisting of an ERP permit; construction of roads, water, sewer, and drainage
infrastructure; storm water improvements; construction of public restrooms; and construction of a campground. The
total project cost was $1,553,500.00. Specific project and construction components included: extension of Air-park
Boulevard, Industrial Park site improvements, Automotive Sports Complex support infrastructure and permit,
sketches and schematics, feasibility analysis, ERP permit, restrooms (i.e. bathhouse), spectator parking,
campground, and project master plan. The campground construction estimated cost was $262,000.00 and the public
restrooms estimated cost was $75,000.00.
The funding breakdown for the project components and construction was as follows: $1,078,500.00 from the EDA
grant, $280,000.00 from the Florida Department of Transportation (FDOT), and $195,000.00 from the Board of
County Commissioners. The total project cost was estimated at $1,553,500.00.
On August 14, 2000, the Collier County Airport Authority was awarded an Economic Development Administration
(EDA) grant for $1,078,500.00 number 04 -01 -04619 for the Immokalee Regional Airport including architectural,
engineering, and construction costs for Industrial Park Infrastructure Improvements. Infrastructure improvements
included extension of Airpark Boulevard, utilities, raising the grade of industrial sites, construction of motor sport
spectator parking, drainage improvements, construction of public restrooms, and construction of a campground. The
estimated useful life for the infrastructure and assets was 20 years.
The EDA grant award required compliance with the U.S. Department of Commerce Financial Assistance Standard
Terms and Conditions. The Standard Terms and Conditions provide remedy for unsatisfactory performance through
"termination for convenience ". To terminate for convenience, both the recipient and the government (i.e. grantor
agency) agree that continuation of the project would not produce beneficial results commensurate with the further
expenditure of funds; both the recipient and the government (i.e. grantor agency) agree upon the termination
conditions, including the effective date, and in the case of partial termination, the portion to be terminated; and the
recipient agrees to incur no new obligations for the terminated portion after the effective date and to cancel or
satisfy all outstanding obligations as of that date.
The EDA grant award / agreement included special conditions as part of the requirements for the CCAA receiving
funding for the project. Special condition #10 — Property Management Standards require "In affirming this Award,
the Recipient acknowledges its responsibility to use the real property acquired or improved by this Award... only for
the authorized and specific purpose of an industrial park... The sales agreements and deed of conveyance shall
include a covenant prohibiting the use of the property for any purpose other than the general and special purpose of
the grant as approved."
The award period was from August 14, 2000 (the date of the award approval) to 19 months after the award
approval. The initial estimate was four months for design work and eight months for construction. According to the
initial award letter, construction was to start prior to February 14, 2001 and be completed by February 14, 2002.
The CCAA submitted the first time extension request to the U.S. Department of Commerce to extend the start of
construction to November 14, 2001 with completion of construction being no later than February 14, 2003. The
U.S. Department of Commerce approved the extension of construction for the EDA grant. The second time
extension was submitted to extend the completion date to October 14, 2003. Construction was not completed by
October 14, 2003. The remaining aspect of the project that had not been completed was the bathhouse on the
campground. The U.S. Department of Commerce approved the extension of construction for the EDA grant. A third
time extension was submitted because of time delays regarding the bathhouse. The extension was denied by the
U.S. Department of Commerce. Instead, it was recommended that the CCAA "terminate for convenience ".
Termination for convenience when 100% of grant funds are received does not remove the special grant provisions /
assurances which would require the CCAA to maintain the assets obtained using grant funding.
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On December 23, 2003, the grant was terminated because of unavoidable delays for completion of the infrastructure
improvements. The EDA agreed to reimburse the lower of 72.44% or $1,078,500.00, the amount not to exceed
$1,078,500.00. The total costs incurred through December 23, 2003 were $1,605,726.00, which allowed for the
maximum cap to be reimbursed from the federal share of the grant. The final payment request indicated the project
was 94% complete at the time of termination with the campground being approximately 90% completed based on
the final close -out documentation submitted to the grantor agency.
On January 12, 2004, the CCAA voted to terminate the EDA grant for convenience.
On February 10, 2004, during the BCC meeting agenda item 14A, the suspension and termination was accepted by
the BCC.
On March 8, 2004, an "Offer to Terminate Grant Agreement" for convenience was accepted by the CCAA. The
Offer to Terminate Grant Agreement for convenience indicated "the parties have now determined that it is not
feasible to complete this investment as originally intended... and the Grant Agreement terminated for convenience
of the parties..."
Based on Collier County Property Appraiser aerial images of the Immokalee Regional Airport campground site in
2005, it appears the bathhouse, walkways, RV sites, and roadways were completed. Between the end of 2005 and
2006 the seven outer RV sites / pads were partially removed (east of the main campground). Between 2006 and
2007, it appears the campground had been significantly disrupted and many of the RV sites / pads were removed.
The bathhouse was removed from the campground and relocated alongside of the drag strip / racetrack. Between
2007 and 2008, the RV sites / pads were completely removed and part of the interior access roadway had been
removed. In 2009, the campground was staged with numerous disposal containers unrelated to the campground. In
2010, the remains from the original campground include the interior loop roadway, less the portion that is no longer
paved (area in front of where the bathhouse was located). Between 2011 and 2013, there were no apparent
additional changes to the campground.
In 2011, Internal Audit completed site visits to observe the campground. The former campground had fire hydrants,
concrete sidewalks, and curbing. There were no utility stubs / no water hook -ups. The campground (above ground)
improvements were mostly dismantled and concrete pads were no longer present. It was noted unlikely the
bathhouse had a sewer pipe to hook -up to the sewer.
In 2012, Internal Audit completed an additional site visit to observe the campground which had been dismantled.
The former campground (above ground) and roadway were overgrown with trees and vegetation.
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Based on Collier County Property Appraiser aerial photographs, the campground / RV sites were removed between
2005 and 2007. The interior access road appears to have been left partially intact (Reference Exhibit A for aerial
photographs).
The Economic Development Administration (EDA) grant agreement Standard Form 424D indicates the applicant
"Will not dispose of, modify use of, or change the terms of the real property title, or other interest in the site and
facilities without permission and instructions from the awarding agency." Airport staff was unable to provide
documentation indicating the grantor agency approved destruction of the campground / RV sites. Airport staff
provided the Offer to Terminate Grant Agreement from the EDA allowing the grant agreement to be terminated for
convenience. The letter did not contain a provision or special instructions indicating the campground / RV sites
could be removed or use of the facility modified.
15 CFR 24 Subpart C 20 (b)(3) requires the "Grantees... must adequately safeguard all such property and must
assure that it is used solely for authorized purposes." 15 CFR 24 Subpart C 31 (b) requires "Use. Except as
otherwise provided by Federal statutes real property will be used for the originally authorized purposes as long as
needed for that purposes, and the grantee... shall not dispose of or encumber its title or other interests." It does not
appear the destruction / removal of the campground / RV sites was the intended purpose of the project when the
campground / RV sites had an estimated useful life of 20 years. Grant funds were not returned to the grantor agency
upon termination of the grant agreement indicating the improvements completed with grant funding would need to
comply with the grant agreement requirements or the grantor agency should have provided a waiver.
13 CFR 314.4(a) indicates the Federal Government (EDA) must be compensated by the Recipient for the Federal
Share, whenever, during the estimated useful life of the project, any property acquired or improved in whole or in
part is disposed of, encumbered, or no longer used for the purpose of the project.
The U.S. Department of Commerce Economic Development Administration Standard Terms and Conditions
Section K4(b)c requires "The Recipient agrees that in the event it disposes of, or alienates in any manner any
interest in, the property during its useful life, without the EDA's written approval, the Government will be entitled
to recover the Deferral share of the value of the property. When during its useful life property is no longer needed
for the purpose of the Award, as determined by EDA, EDA may permit its use for other acceptable purposes
consistent with those authorized for support by EDA." The campground / RV sites were disposed of during its
useful life. The County was unable to provide documentation from the EDA approving the disposal of the
campground infrastructure or allowing other uses for the property.
2 CFR 215.61(b) (previously OMB Circular A -110) indicates if costs are allowed under an award, the
responsibilities of the recipient... including those for property management as applicable, shall be considered in the
termination of the award, and provision shall be made for continuing responsibilities of the recipient after
termination, as appropriate." The letter for termination of convenience provided by the grantor agency did not
include special instructions indicating the asset (i.e. campground / RV sites) could be disposed or the continuing
responsibilities, so it appears the initial grant terms may remain in effect (i.e. useful life of 20 years). The
termination for convenience letter did not provide a waiver for the asset maintenance and/or retention requirements
indicating the County may not be in compliance with federal requirements when the campground / RV sites were
dismantled and disposed. Without grantor approval, the County does not appear to have authority to dispose of the
assets obtained with federal grant money.
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Recommendations:
• The County should work with the U.S. Department of Commerce to determine if there were continuing
responsibilities for the project.
• The County should comply with the Code of Federal Regulations (CFR's), grant agreements, and grant
assurances.
• When assets and/or infrastructure are paid for through grant funding then disposed, the County should receive
approval from the grantor agencies prior to disposal.
• The County should properly monitor assets and submit the appropriate documents to properly record changes to
assets.
County Management Response:
"TJse county will work with the grantor, US Dept of Commerce (USDQ, to develop a resolution to the audit finding
regarding dismantling portions of the campground area.
The Airport Authority will not dispose of any property, regardless of whether it was purchased with grant funds or
county dollars, without following the proper process in the future to ensure compliance with any applicable
regulations which include CFRs, agreements and assurances.
Staff agrees permission from the grantor agency to dispose of any property acquired with grant funds shall require
approval before disposition. This procedure will be properly followed in the future.
The airport managers understand the implications of also being property officers, in accordance with CAM 5809,
and will diligently monitor property and fill out the proper paperwork for any necessary transfers or disposals of
county assets. "
On August 14, 2000, the Collier County Airport Authority (CCAA) was awarded an U.S. Department of Commerce
Economic Development Administration (EDA) grant for $1,078,500.00 number 04 -01 -04619 for the Immokalee
Regional Airport including architectural, engineering, and construction costs for Industrial Park Infrastructure
Improvements. Infrastructure improvements included extension of Airpark Boulevard, utilities, raising the grade of
industrial sites, construction of motor sport spectator parking, drainage improvements, construction of public
restrooms, and construction of a campground. The estimated useful life for the infrastructure and assets was 20
years. The total estimated cost of the project was $1,553,500.00 including a FDOT grant and a County match.
When the EDA grant was terminated for convenience, the construction for the entire project was approximately
94% complete with the campground / RV sites portion being 90% complete based on the final close -out
documentation submitted to the grantor agency. The bathhouse was the portion of the campground not completed at
the time of tennination of the EDA grant. The asset was recorded with Finance on April 30, 2006 with $94,285.13
being for the restroom / bathhouse and $1,131,441.17 for the Airpark Boulevard Extension and campground / RV
sites. Based on payment requests and information provided by CCAA staff, the estimated cost for construction of
the campground / RV sites is approximately $340,657.72. The EDA portion of the campground / RV sites cost is
approximately $246,772.45. The campground / RV sites were never put to its intended use and were demolished
between 2005 and 2010.
The August 14, 2000 EDA grant agreement included special conditions as part of the requirements for the CCAA
receiving funding for the project. Special condition 910 — Property Management Standards require "In affirming
this Award, the Recipient acknowledges its responsibility to use the real property acquired or improved by this
Award... only for the authorized and specific purpose of an industrial park ... The sales agreements and deed of
conveyance shall include a covenant prohibiting the use of the property for any purpose other than the general and
special purpose of the grant as approved..." The special condition indicates the campground / RV sites should have
been used as a campground facility for the estimated useful life of 20 years.
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2 CFR 215.61(b) (previously OMB Circular A -110) indicates if costs are allowed under an award, the
responsibilities of the recipient... including those for property management as applicable, shall be considered in the
termination of the award, and provision shall be made for continuing responsibilities of the recipient after
termination, as appropriate." The letter for termination of convenience provided by the grantor agency did not
include special instructions indicating the asset (i.e. campground / RV sites) could be disposed or continuing
responsibilities. It appears the initial grant terms may have remained in effect for the estimated useful life of the
asset (i.e. useful life of 20 years). The termination for convenience letter did not provide a waiver for the asset.
The CCAA received and used grant funds to construct the campground facility and did not return the funds upon
termination for convenience, indicating the original terms of the grant agreement would apply to the assets
constructed with grant funds. The termination for convenience did not include a waiver or special instructions for
disposal of the asset. The CCAA was unable to provide documentation indicating the EDA approved destruction of
the campground. By dismantling the campground / RV sites, the CCAA may be liable to reimburse the grantor
agency for funds used for this portion of the project.
Recommendations:
The County should work with the U.S. Department of Commerce to determine if the County has further
obligations under the grant agreement. The County should obtain a waiver for the campground / RV Park
requirements.
The County should monitor capital projects to ensure the appropriate assets are recorded.
The County should provide Finance with the appropriate paperwork to reduce the asset's recorded value.
County Management Response:
"77re county has made contact with a representative at the Atlanta office of the EDA and will continue to work with
the grantor on the resolution to this finding. The bath house has been relocated to the race track area of the
airport, where it is currently in use; Staff will also request approval from the USDC /EDA of the relocation of that
asset.
Regardless of whether the grantor approves the disposal of the campground asset, a suggested write -down will be
forwarded to Finance for consideration of an adjustment to the value of the asset record once it is fully analyzed.
Ae airport managers understand the implications of also being property officers in accordance with CMA 5809
and will monitor assets and fill out the proper paperwork for any necessary transfers or disposals of county assets. "
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The campground / RV sites were constructed and paid for using grant monies. The asset had an initial estimated life
of 20 years. Federal requirements required the asset to be used and maintained as a campground / RV site for 20
years. The grant agreement was "terminated for convenience" without addressing continued grant requirements. The
campground / RV sites were improperly disposed without approval from the grantor agency. The CCAA did not
notify Finance when disposal occurred or complete the appropriate paperwork for disposal to remove the asset from
the County records.
All requirements of the grant applications, assurances, and agreements should be met or specifically addressed at
the termination of a grant agreement and/or project. Appropriate disposal authority should be clear in termination
documentation and/or obtained prior to asset disposal.
Failure to comply with grantor requirements may: result in audit findings, jeopardize current and future grant
funding; result in disbarment from receiving grant funding, require repayment of grant funds, result in termination
of the grant, impact future grant awards, and /or result in liability for damages for misrepresentation.
Audits do not relieve management of their responsibilities. It is the responsibility of County management to
understand and implement the proper procedural controls in order to reduce and limit the risk of fraud, error, and
misappropriation of County assets. Internal Audit may recommend improvements in audit reports, but ultimately it
is the duty and decision of County management to formulate processes and controls that ensure compliance with
Federal regulation, State statute, County ordinance, and County policies.
Recommendation:
• The County should properly monitor grant assets to ensure compliance with federal requirements.
• The County should complete the appropriate paperwork when disposing of an asset to ensure assets are properly
recorded.
• The County should review the FDOT grant for compliance. The County should work with the FDOT to
determine if the County has further obligations under the grant.
Additional County Management Comments:
"With the merger of the Airport Authority into the Growth Management Division, the Authority has a more robust
support system in relation to grants management as well as monitoring of county approved policies and procedures
(which include properly monitoring and safeguarding of assets). Capital assets have recently been 100% physically
inspected by GMD staff (unrelated to airport operations) to ensure an independent validation of asset records for
the cost center director change.
Staff will review the grant requirements and work with the proper representatives at the Florida Department of
Transportation to resolve any outstanding audit concerns.
Staff looks.fonvard to rernediating these findings and will work with the Clerk's Office on the corrections and
keeping the proper parties notified of communications from the grantor. "
Internal Audit Comments:
Internal Audit gratefully acknowledges the cooperation and assistance from County staff. The assistance and
responses provided by the division greatly assisted in the audit process for the review.
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11/18/2014 14.A.2.
Exhibit A
10
Packet Page -848-
11/18/2014 14.A.2.
Summary: Drainage ditch and road work extend parallel to the campground site. 17 RV sites with pads were completed.
The interior and entrance roadways were installed. The campground is approximately 90% completed. The bathhouse is
not completed.
11
Packet Page -849-
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Summary: The outer RV sites were partially removed. No other apparent changes to the campground.
13
Packet Page -851-
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11/18/2014 14.A.2.
Summary: The campground (above ground) was fully dismantled with all RV sites removed. A portion of the interior
roadway was removed.
15
Packet Page -853-
11/18/2014 14.A.2.
Summary: The campground is staged with numerous containers unrelated to the campground. No other apparent
changes to the campground.
16
Packet Page -854-
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F-.xhibit B
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Packet Page -859-
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11/18/2014 14.A.2.
Exhibit
24
Packet Page -862-
11/18/2014 14.A.2.
Management Timeline
Executive Airport Starting Ending Notes
Director
John Drury
1994
Approx. September 2002
Bob Tweedie
October 2002
May 2003
Interim
Gene Schmidt
May 2003
December 2004
Teresa Cook
December 2004
December 2009
Debra Brueggerman
December 2009
May 2010
Interim
Penny Phillippi
May 2010
September 2010
Interim
Thomas Chris Curry
September 2010
September 2013
25
Packet Page -863-
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11/18/2014 14.A.2.
Packet Page -866-
11/18/2014 14.A.2.
Packet Page -867-