Backup Documents 12/16/2008 Item #16B 6
ORIGINAL DOCUMENTS CHECKLIST & ROUTING SL! 6 B 6
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OHICE FOR SIGNATURE
Print on pink paper. Attach to OJiginal document. Original documents should be hond delivered to the Board Office, The completed routing slip and OIiginal
documents afC to be forwarded to the Board OtTicc only after the Board has taken action on the item)
ROUTING SLIP
Complete routing lines #1 through #4 as appropriate for addilional signatures, dates, and/or information needed. If the document is already complete with the
exceotion of the Chairman's signature, draw a line through routing lines #1 through #4, complete the checklist, and forward to Sue Filson line#5),
Route to Addressee(s) Office Initials Date
(List in routing order)
1.
2
--
3. ,----
/
4. Scott R. Teach, Deputy County Attorney County Attorney 12/16/08
5. Sue Filson, Executive Manager Board of County Commissioners
6. Minutes and Records Clerk of Court's Office
PRIMARY CONTACT INFORMATION
(The primary contact is the holder of the original document pending Bee approval. Normally the primary contact is the person who created/prepared the executive
summary. Primary contact information is needed in the event one ol'thc addressees above, including Sue Filson, need to contact staff for additional or missing
information. All original documents needing the Bee Chaimlan's signature are to be delivered to the Bee office only after the Bee has acted to approve the
item.
Name of Primary Staff
Contact
Agenda Date Item was
A roved b the BCC
Type of Document
Attached
Sue Faulkner
Phone Number
(239) 252-5889
16B6
Resolution - I
A lications - 3
Yes
(Initial
SRT
12116/08
Agenda Item Number
N/A
SRT
SRT
N/A
SRT
Resolution for Federal Transit Agency Section 5311
Grant & Application /
Number of Original
Documents Attached
J: Forms! County Formsl Bee Forms/ Original Documents Routing Slip WWS Original 9.flJ,04. Revised 1.26.05, Rcvisl:d 2.24.05
((matter _numhem/((document._ number>>
INSTRUCTIONS & CHECKLIST
Initial the Yes column or mark "N/A" in the Not Applicable column, whichever is appropriate.
I.
Original document has been signed/initialed for legal sufficiency. (All documents to be signed by the
Chairman, with the exception of most letters, must be reviewed and signed by the Office of the
County Attorney. This includes signature pages from ordinances, resolutions, etc. signed by the
County Attorney's Office and signature pages from contracts, agreements, etc. that have been fully
executed by all parties except the BeC Chairman and Clerk to thc Board and possibly State
Officials.
All handwritten strike-through and revisions have been initialed hy the County Attorney's Office and
all other arties excc t the BCe Chairman and the Clerk to the Board
The Chairman's signature line date has been entered as the date of Bee approval of the document or
the final ne otiated contract date whichever is a licable.
"Sign here" tabs are placed on the appropriate pages indicating where the Chairman's signature and
initials are re uired.
In most cases (some contracts are an exception), the original document and this routing slip should be
provided to Sue Filson in the Bee office within 24 hours of Bee approval. Some documents arc
time sensitive and require forwarding to Tallahassee within a certain time frame or the BeC's actions
are nullified. Be aware of our deadlines!
The document was approved by the BCe on December 16.2008 and all changes made during
the meeting have been incorporated in the attached document. The County Attorney's Office
has reviewed the chan es, if a licable.
2.
3.
4.
5.
6.
l68 6
MEMORANDUM
Date: December 17,2008
To: Sue Faulkner, Principal Planner
Alternative Transportation
From: Martha Vergara, Deputy Clerk
Minutes & Records Department
Re: Resolution 2008-363 & Section 5311 Grant Application
Attached are four original documents (one resolution and three
amendments (Agenda Item #16B6) adopted by the Board of County
Commissioners on Tuesday, December 16, 2008.
Please forward a fully executed original to the Minutes and Records
Department for the Board's Records.
If you should have any questions, please contact me at 252-7240.
Thank you.
RESOLUTION NO. 2008-l.2.L
A RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS, COLLIER
COUNTY, FLORIDA, AUTHORIZING THE CHAIRMAN TO EXECUTE AND
FILE ALL DOCUMENTS NECESSARY TO APPLY FOR A FEDERAL
TRANSIT AGENCY SECTION 5311 GRANT, TO REVISE AND EXECUTE ANY
REQUIRED DOCUMENTATION, AND TO ACCEPT, ON BEHALF OF THE
COUNTY, ANY SUCH GRANT AWARDED.
168
6
WHEREAS, 49 U.S.C. ~ 5311 authorizes the Secretary of Transportation to make grants and
loans to local government authorities such as Collier County to help provide rural transit services;
and
WHEREAS, each year, through an application process administered by the Florida
Department of Transportation, Collier Area Transit has obtained funds that are used for providing
rural transportation services to the residents of Collier County; and
WHEREAS, the Board of County Commissioners of Collier County, Florida, has authority to
apply for and accept grants from the Florida Department of Transportation as authorized by
Chapter 341, Florida Statutes, and by the Federal Transit Administration Act of 1964, as
amended.
NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners, Collier
County, Florida, that:
I. The BOARD authorizes its Chairman to revise and execute any and all documents
necessary to apply for the Federal Transit Administration Section 5311 Grant,
including but not limited to executing the Section 5333 (b) Assurance, a copy of
which documents are attached hereto, to approve any budget amendments necessary
to receive these funds, and to accept these funds on behalf of the County.
2. The BOARD'S registered agent in Florida is: Jeffrey A. Klatzkow, County Attorney.
The registered agent's address is 3301 East Tamiami Trail, Naples, FL 34112.
3. Any decision to terminate or otherwise not accept the Grant shall first require
approval by the Board of County Commissioners as an agenda item.
4. This Resolution shall be effective immediately upon signature by the Chairman.
This Resolution adopted after motion, second and majority vote favoring same, this
16th day of December, 2008.
\.,-.\'i-/ ','.
,i,;>
BOARD OF COUNTY CO MISSIONERS
:L~TY' F IDA
. ~
Tom Henning, Chairm
By:
Attest it- .t&-. .
slgnatunOA1i8. ..
A~il;ZZ~CienCY:
Scott Teach
Deputy County Attorney
...
16 B *6
COLLIER COUNTY GOVERNMENT
TRANSPORTATION SERVICES DIVISION
Alternative Transp9rtation Modes Departmt.'nt
2885 Horseshoe Drive South 0 Naples, Florida 34104 0239-774-8192 0 FAX 239.213.5899
..
December 19, 2008
Mr. Terry Beacham
Fiorida Department of Transportation
Post Office Box 1249
801 N. Broadway
Bartow, Florida 33830-1249
RE: 5311 Grant Submittal
Dear Mr. Beacham:
Collier County Board of County Commissioners submits this Application for Section 5311 Program
Grant Funds and agrees to comply with all assurances and exhibits attached hereto and by this reference
made a part thereof, as itemized in the Checklist for Application Completeness.
This Application is submitted on this 19th day of December, 2008 with two original resolutions
.. authorizing the Chairman of the Board of County Commissioners to sign and execute this application
and any other supporting documentation.
Thank you for you assistance in this matter.
Sincerely,
", ~{ I}I)
___J )~."- III (L<.".I)f"
----;'-..-."
Sue Faulkner, Principal Planner
Alternative Transportation Modes
Collier County
Enclosures
cc: Michelle E. Arnold, Alternative Transportation Modes Director
Norman Feder, Transportation Administrator
Therese Stanley, Transportation Grants Coordinator
Kelly Jones, Finance Department
..
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"
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,
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168 '6
APPLIES TO APPLICANTS FOR OPERATING ASSISTANCE (ONLY)
CHECKLIST FOR APPLICATION COMPLETENESS
Name of Applicant:
Collier County Board of County Commissioners
Check One: New Applicant
Recurring Applicant
x
The following documents must be included in section 5311 Operating Assistance Applications in
the order listed:
L This checklist.
L Applicant's cover letter and 2 copies of the governing board's Resolution.
...2S- Forms B-1 and B-2 (Operating and Administrative Expense & Revenues; Grant Request.)
L Application for Federal Assistance (Form 424, Code 20.509).
1- Exhibit A-1: Fact Sheet.
L Exhibit E: Single Audit Act, and a copy of the latest completed audit, if applicable.
N/A Exhibit E-1: Certification of Exemption from Single Audit Act, if applicable.
1- Exhibit F: Federal Certifications and Assurances.
L Exhibit I: FTA Section 5333(b) Assurance.
Date Application submitted to Local Clearinghouse Agency 12-1-08
Additional documents required from New Applicants:
L Exhibit A - Current System Description.
Exhibit B - Proposed Project Description.
16 B ~'6
EXHIBIT A
Current System Description
EXHIBIT A
168
6
SYSTEM DESCRIPTION FROM THE TRANSPORTATION SERVICE
DEVELOPMENT PLAN
INTRODUCTION TO THE SERVICE AREA
Background
Collier County Government's Alternative Transportation Modes Transportation Department
serves as the Community Transportation Coordinator (CTC) for Collier County.
Collier County CTC is considered a complete brokerage, contracting all fixed-route, paratransit,
and transportation disadvantaged operations to McDonald Transit who operates as Collier Area
Transit (CAT). CAT obtains prior authorization for all trips (ADA, TO, and Medicaid), schedules
the trip(s) and invoices the Collier County Alternative Transportation Modes Department on a
monthly basis.
Collier Area Transit operates nine routes on a fixed-route system. The entire fleet is equipped
with lifts that are compatible with the Americans with Disabilities Act of 1990 (ADA). CAT sub-
contracts with private operators to provide TO paratransit service throughout the remaining
portions of Collier County.
As the management company for the CTC, CAT performs the basic elements of coordination for
the paratransit program in Collier County, e.g., call intake, certification, eligibility, reservations,
scheduling, transportation, reporting, cost-sharing and information sharing. Collier County
provides administrative support such as grant writing, planning, budgeting, and public
information and also program approval for all aspects of the Paratransit program. Three distinct
transportation programs are provided under Collier Area Transit's Paratransit Program:
Americans with Disabilities Act (ADA). Transportation Disadvantaged (TO) and Medicaid.
The ADA program provides service to people who reside within % miles of an existing CAT bus
route and have transportation needs that fall within the service schedule of CAT, but cannot
access the bus system due to a disability.
The TO program provides service to people residing in areas where CAT bus routes are not
available and who have no other means of transportation.
The Medicaid program provides transportation to Medicaid eligible people who cannot travel by
the CAT bus routes and have no other means of transportation.
Collier Area Transit currently employs seventy-five people.
168
6
Collier Area Transit Ridership History
FISCAL YEAR TOTAL
FY01 97,571
FY02 324,037
FY03 475,820
FY04 627,824
FY05 951,601
FY06 1,052,536
FY07 1,180,147
FY08 1,166,358
Collier Area Transit Ridership on the 5311 Route in the Township of Immokalee, Florida
OCT NOV DEe JAN FEB MAR APR MAY JUN JUL AUG SEP TOTAL
FY 06 3,126 5,984 6,120 6,610 5634 6,283 3,587 4,199 5,430 5,923 6,099 4,835 58,995
FY07 5,708 6,553 5,622 6,888 5,958 6,452 3,940 5,325 5,382 5,548 5,711 5,532 68,619
FY08 6,748 5,411 5,564 6293 8593 7,867 8,412 8,520 9,821 8,926 8,303 7,520 91,978
FY09 8,900
Collier Area Transit's Route 8 (5311 Route) serves the township of Immokalee, FL, which is
situated in the rural Northeast portion of Collier County. Route 8 is currently the only one of
nine routes receiving FTA 5311 funds. The 2000 US Census estimated the population of
Immokalee, FL was 21,845. The 2008 population estimate of Immokalee is 25,946. Collier
Area Transit transported the equivalent of 34% of the total population of Immokalee. FL during
the month of October 2008. Ridership on Collier Area Transit's 5311 Route in the Township of
Immokalee. Florida is showing a steady increase in ridership. Capacity issues were addressed
with the expansion of Collier Area Transit's 5311 Route occurred at the end of January 2008. A
reverse route service was added to Route 8 (the Immokalee Circulator, which doubled the
service on this route. This route is critical to ensure the transportation needs of the elderly,
disabled. and low income citizen's of Immokalee, Florida are met.
168 6
PART B
TRANSPORTATION-RELATED OPERATING and ADMINISTRA liVE
EXPENSES
&
TRANSPORTATION-RELATED OPERATING and ADMINISTRATIVE REVENUES
16B 6
PART 8
APPLIES TO ALL APPLICANTS FOR OPERATING ASSISTANCE
FORM B-1
TRANSPORTATION-RELATED OPERATING and ADMINISTRATIVE
EXPENSES
Fiscal period from 7-1-09 to 6-30-10
EXPENSE CATEGORY TOTAL EXPENSE FTA ELIGIBLE EXPENSE
Labor (501) $ $
Fringe and Benefits (502)
Services (503)
Materials and Supplies (504) $165051
Vehicle Maintenance (504.01) $1,254,610
Utilities (505) $50,000
Insurance (506)
Licenses and Taxes (507)
Purchased Transit Service (508) $2,829,574
Miscellaneous (509) $165050
Leases and Rentals (512)
Depreciation (513)
TOTAL $4,464,285 $ (a)
SECTION 5311 GRANT REQUEST
Total FTA Eligible Expenses (from Form 8-1, above) $ (a)
Rural Passenger Fares (from Form 8-2) $ 65.842 (b)
Operating Deficit $ (c)
[FTA Eligible Expenses (a) minus Rural Passenger Fares (b)]
Section 5311 Request $ (d)
(No more than 50% of Operating Deficit)
Grand Total Revenues (from Form B-2) $ (e)
Note: If Grand Total Revenues (e) exceeds FTA Eligible Expenses (a), reduce the Section
5311 Request (d) by that amount.
168 6
PART B
APPLIES TO ALL APPLICANTS FOR OPERATING ASSISTANCE
FORM B-2
TRANSPORTATION-RELATED OPERATING and ADMINISTRATIVE REVENUES
Fiscal period from 7-1-09 to 6-30-10
OPERATING REVENUE TOTAL REVENUE REVENUE USED AS
CATEGORY FTA MATCH
Passenger Fares for Transit Service Total- $734,158
Rural =$65,842
(401) Ibl
Special Transit Fares (402)
School Bus Service Revenues (403)
Freight Tariffs (404)
Charter Service Revenues (405)
Auxiliary Transportation Revenues
(406)
Non-transportation Revenues (407)
Total Operating
Revenue $800,000 $
OTHER REVENUE
CATEGORY
Taxes Levied directly by the Transit
Svstem (408)
Local Cash Grants and $2,360,000
Reimbursements (409)
Local Special Fare Assistance (410)
State Cash Grants and $623,319
Reimbursements (411)
State Special Fare Assistance (412)
Federal Cash Grants and $680,966
Reimbursements (413)
Interest Income (414)
Contributed Services (430)
Contributed Cash (431)
Subsidy from Other Sectors of
Ooerations (440)
Total of Other
I Revenue $3,664,285 $
GRAND TOTAL $4,464,285 $ (e)
ALL REVENUE
168 6
APPLICATION FOR Version 7103
2. DATE SUBMITTED Applicant Idenlifier
12-22-08
3. DATE RECEIVED BY STATE Slale Applicalion Idenlifier
FEDERAL ASSISTANCE
1. TYPE OF SUBMISSION:
Application Pre-application
o Construction 0 Construction
En Non.Constructlon Ii Non..constructlon
5. APPLICANT INFORMATION
Legal Name:
Collier County Board of County Commissioners
Organizational DUNS:
4. DATE RECEIVED BY FEDERAL AGENCY Federalldenlifler
Address:
Street:
2885 S Horseshoe Drive
iCily:
Naples
, Cou.nty:
: Calher County
State: Zip Code
Florida 34104
Country"
USA
6. EMPLOYER IDENTIFICATION NUMBER IE/N):
@]12J-@]@][Q][Q]@]@]@]
8. TYPE OF APPLICATION:
!l7 New III Continuation
If Revision, enter appropriate letter(s) in box(es)
(See back of form for description of letters.)
fl Revision
o
o
Other (specify)
10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER:
@][]-[][i]0
TITLE (Name of Program):
12. AREAS AFFECTED BY PROJECT (Cities, Counties. States, ete.):
Community of lmmokalee, Naples, Marco Island, Everglades City, Collier County,
13. PROPOSED PROJECT
Start Date:
7-1-2009
15. ESTIMATED FUNDING:
I Ending Date:
I 6-30-2010
a. Federal $
265,555
b. Applicant $
c. State
.""
w
178,780 .
d. Local
e. Other
$
86,775
f. Program Income
Oraanlzatlonal Unit:
Department
Alternative Transportation Modes
Division:
Transportation
Name and telephone number of person to be contacted on matters
Involvlna this apDllcatlon (alve area code)
Prefix: I First Name:
Ms i Sue
Middle Name
Last Name
Faulkner
Suffix:
Email:
suefaulkner@colliergov.net
Phone Number (give area code)
239-252-8192
Fax Number (give area code)
239-252-3029
7. TYPE OF APPLICANT: (See back of form for Application Types)
B- County
:Jther (specify)
9. NAME OF FEDERAL AGENCY:
Federal Transit Administration
11. DESCRIPTIVE TITLE OF APPLlCANrS PROJECT:
5311 operating assistance requested to continue public transportation
services in rural areas of Collier County such as in Immokalee.
14. CONGRESSIONAL DISTRICTS OF:
a. Applicant b. Project
14 14
16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE
JRDER 12372 PROCESS?
!\Z! THIS PREAPPLICATIONIAPPLlCATION WAS MADE
a. Yes. . AVAILABLE TO THE STATE EXECUTIVE ORDER 12372
PROCESS FOR REVIEW ON
DATE: 12-1-08
b. No. rn PROGRAM IS NOT COVERED BY E. O. 12372
o OR PROGRAM HAS NOT BEEN SELECTED BY STATE
FOR REVIEW
17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
g.TOTAL!$ 531,110 QYeSlf''YesMattachanexplanation. ~No
18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLlCATION/PREAPPLlCATION ARE TRUE AND CORRECT. THE
DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE
ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED.
, a Authorized R re entativ
Prefix
Mr.
First Name
Tom
Last Name
Henning
b. Title "I' .
Chairman ,',': \ I,~' :!.
[d, Signature of Autho~~zed~Rep"r~~~f'!tativ"e ''.,
! .--,- ,j,; ,I..'
Previous Edition Usable ~ ;. ~
Authorized for Locat,Reoroduction
r
. ,TEST'"
..C
.____~~~~~R~~
Middle Name
uffix
,
//
../1 . Date Signed I ;) - /(. - 0 6
y--. 41: ~.. Standard Form 424 (Rev.9-2003)
'2::. ,...~~c.-y PrescribedbvOMBCircularA-102
/
~ ..,.(
o
"
. Telephone Number (give area code)
239.252-8097
Deputy Counly Attorney
16B 6
EXHIBIT A-1
FACT SHEET
168 6
A- 1 FACT SHEETfor 5311
CURRENT IF GRANT IS AWARDED
1. Number of one-way 1,166,358 1,175,000
passenger trips. PER YEAR
2. Number of individuals 1,166,358 1,200,000
served (unduplicated). PER
YEAR
3. Number of vehicles used for 16 PER DAY 16 PER DAY
this service. AVERAGE
4. Number of ambulatory 24 PER VEHICLE 24 PER VEHICLE
seats.
5. Number of wheelchair 2 PER VEHICLE 2 PER VEHICLE
positions.
6. Vehicle Miles traveled. 1,239,610 1,300,000
7. Normal vehicle hours in 66,490 68,039
operation.
8. Normal number of days in 7 per week 7 per week
operation.
9. Trip length. Average Route length for one Average Route length for one
trip is 22 miles trip Is 22 miles
168 6
EXHIBIT C
Public Hearing
Naples Daily News
Naples, FL 34102
Affidavit of publication
Naples Daily News
----- - ---- -- -- ------------+ --
,
I
COLLIER Co-CNT'f M. P.O.
BRANDY OTERO
2885 S HORSESHOE DR
NAPLES FL 34104
REFERENCE: 057522
59546165
NOTICE OF PUBLIC HEA
State of Florida
County of Collier
Before the undersigned authority, personally
appeared Susan Rogge, who on oath says that she
serves as the vice President of Finance of the
Naples Daily News, a daily newspaper published at
Naples, in Collier County, Florida: that the
attached copy of advertising was published in said
newspaper on dates listed.
Affiant further says that the said Naples Daily
News is a newspaper published at Naples, in said
Collier County, Florida, and that the said
newspaper has heretofore been continuously
published in said Collier County, Florida, each
day and has been entered as second class mail
matter at the post office in Naples, in said
Collier County, Florida, for a period of 1 year
next preceding the first publication of the
attached copy of advertisement; and affiant
further says that he has neither paid nor
promised any person, firm or corporation any
discount, rebate, commission or refund for the
purpose of securing this advertisement for
publication in the said newspaper.
PUBLISHED ON: 12/07 12/07
16B 6
130.000INCI
12/08/08
:::::'::e.:: :::::::bedbefO"~'~ ~J1~O:"'~Cf",~'~'O~~~ ~~~~
Personally known by me Ltcx::Ll\..\..L~!{l\Ci.~(, l1~i ,,-
',.",,'. .,..... -cFWlEt A:lilCl)()IqALD
i} A:.', Commission 00 650475
':1.~:..'t) Expiras June 29, 2011
<:,~l,~;';t. <l._~.,."....T_'._I"...",__~~7Il1~
AD SPACE:
FILED ON:
168 6
Exhibit E
Single Audit Act
168 6
Single AuditlFederal and State Schedule
of Financial Assistance
The Single AuditlFederal and State schedule of fInancial assistance section presents Grants
compliance reports filed by Collier County with Federal government and State government,
respectively.
THIS PAGE INTENTIONALLY LEFf BLANK
168 6
168 6
i!J ERNST & YOUNG
. ErnSI&Youngul' . Phullt.; ,ff;.1,/11I1I.1I00l1
Suilt'-Utl \\W\\.t'v.n'lll
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Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards
Members of the Board of County Commissioners
Collier County, Florida
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information for Collier County, Florida (the County) as of and for the
year ended September 30, 2007, which collectively comprise the County's basic financial
statements and have issued our report thereon dated March 17, 2008. We conducted our audit in
accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the County's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identifY all deficiencies in
internal control over [mancial reporting that might be significant deficiencies or material
weaknesses. However, as discussed below, we identified certain deficiencies in internal control
over financial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination
of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting
principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the
entity's internal control. We consider the deficiencies described in the accompanying schedule of
[mdings and questioned costs to be significant deficiencies in internal control over financial
reporting. These deficiencies are described in the accompanying schedule as items 2007-1
through 2007-4.
1\ l11ember iirl11 oi Ernst ,,,-< Young (;Iobill Limit<'d
0806-09S4714
151
168 6
ill ERNST & YOUNG
. Ernst & Young llP
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the entity's internal control. Our consideration of the
internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the internal
control that might be significant deficiencies and, accordingly, would not necessarily disclose all
significant deficiencies that are also considered to be material weaknesses. However, of the
significant deficiencies described above, we consider items 2007-1 and 2007-2 to be material
weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
We noted certain matters that we reported to management of the County in a separate letter dated
March 17, 2008.
This report is intended solely for the information and use of the members of the County
Commissioners, management, and others within the entity, federal and state awarding agencies,
and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
~of hLLP
March 17,2008
A 11)(;l11lwl' linn of [rnS! & Youl1g (;Iob,,1 Limited
0806-0954714
152
168 6
au ERNST & YOUNG
. I:rnsf & Young UP . Phnl1\': .'1:;..\, mUHmOll
Suiw:OO W\\\\.l'\.lOll1
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ron lo1l1dl'fd.lle f"I"rido1'-\ all-11M,
Report of Independent Certified Public Accountants on Compliance
With Requirements Applicable to Each Major Federal Program and
State Project and on Internal Control Over Compliance in Accordance
With OMB Circular A-133, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Auditor General
Members of the Board of County Commissioners
Collier County, Florida
Compliance
We have audited the compliance of Collier County, Florida (the County), with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-I33 Compliance Supplement, and the requirements described in the State of Florida's
State Projects Compliance Supplement, that are applicable to each of its major federal programs
and state projects for the year ended September 30, 2007. The County's major federal programs
and state projects are identified in the summary of auditor's results section of the accompanying
schedule of fmdings and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs and state
projects is the responsibility of the County's management. Our responsibility is to express an
opinion on the County's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular
A-133, Audits of States, Local Governments, and Non-Profit Organizations; Section 215.97,
Florida Statutes (Section 215.97); and Chapter 10.550, Rules of the Auditor General (Chapter
10.550), State of Florida. Those standards, OMB Circular A- 133, Section 215.97 and Chapter
10.550 require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program or state project occurred. An audit includes
examining, on a test basis, evidence about the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination of the County's compliance with those requirements.
;\ member linn ni ErnSI ,'<, Young c;lnbal Limited
0806-0954714
153
168 6
ill ERNST & YOUNG
. Ernst & Young LlP
As described in item 2007-11 in the accompanying schedule of findings and questioned costs,
the County did not comply with requirements regarding allowable costs that are applicable to its
Community Development Block Grant (CDBG) Program. As described in items 2007-11 and
2007-14 in the accompanying schedule of findings and questioned costs, the County did not
comply with requirements regarding allowable costs and reporting that are applicable to its State
Housing Initiative Partnership (SHIP) Program. As described in items 2007-9, 2007-11 and
2007 -12 in the accompanying schedule of findings and questioned costs, the County did not
comply with requirements regarding subrecipient monitoring, allowable costs, and matching that
are applicable to its Home Investment Partnerships Program (HOME) Program. As described in
item 2007-7 in the accompanying schedule offmdings and questioned costs, the County did not
comply with requirements regarding reporting that are applicable to its State Criminal Alien
Assistance Program (SCAAP). Compliance with such requirements is necessary, in our opinion,
for the County to comply with requirements applicable to these programs.
In our opinion, except for the noncompliance described in the preceding paragraph, the County
complied, in all material respects, with the requirements referred to above that are applicable to
each of its major federal programs and state projects for the year ended September 30, 2007. The
results of our auditing procedures also disclosed other instances of noncompliance with those
requirements, which are required to be reported in accordance with OMB Circular A-133,
Section 215.97, or Chapter 10.550, and which are described in the accompanying schedule of
findings and questioned costs as items 2007-6, 2007-13, 2007-15, and 2007-16.
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants
applicable to federal programs and state projects. In planning and performing our audit, we
considered the County's internal control over compliance with requirements that could have a
direct and material effect on a major federal program or state project in order to determine our
auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the County's internal control
over compliance.
Our consideration of internal control over compliance was for the limited purpose described in
the preceding paragraph and would not necessarily identify all deficiencies in the County's
internal control that might be significant deficiencies or material weaknesses as defined below.
However, as discussed below, we identified certain deficiencies in internal control over
compliance that we consider to be significant deficiencies and others that we consider to be
material weaknesses.
t\ m('mber jirm oj [mst ,'Ix Young (;Inbill Limited
0806-0954714
154
168 6
!!l ERNST & YOUNG
. Ernst & Young llP
A control deficiency in an entity's internal control over compliance exists when the design or
operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect noncompliance with a type of
compliance requirement of a federal program or state project on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects
the entity's ability to administer a federal program or state project such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal
program or state project that is more than inconsequential will not be prevented or detected by
the entity's internal control. We consider the deficiencies in internal control over compliance
described in the accompanying schedule of findings and questioned costs as items 2007-5
through 2007-16 to be significant deficiencies.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program or state project will not be prevented or detected by the entity's
internal control. Of the significant deficiencies in internal control over compliance described in
the accompanying schedule of findings and questioned costs, we consider items 2007-8, 2007-9,
2007-11,2007-12, and 2007-14 to be material weaknesses.
The County's response to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the County's response and,
accordingly, we express no opinion on it.
This report is intended solely for the information and use of the members of the County
Commission, management and others within the entity, the Auditor General of the State of
Florida, federal and state awarding agencies, and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
~ThLLP
May 29, 2008
.A member iirm of frnst & Young (;lnhrll Limitt'd
0806-0954714
155
168 6
COLLIER COUNTY. FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
Federal or State GrantorlPass-Throulith Grantor Proafam Title
CFDA #/
CSFA #
GraDtlContrad Number
Expenditures
United States Denartmcnt of AR'riculturc
Direct Programs:
Rural Business..cooperative Service:
Rural Business Enterprise Grant
10.769
Collier County
$
35.840
lndirect Programs:
Florida Department of Education:
Summer Food Service Program for Children
Florida Deparnnerlt of Agriculture and Conswner Services:
Forestry State Grant
Forestry State Grant
Forestry State Grant
Total CFDA
10.559
04-804
465.167
10.664
10.664
10.664
Isles of Capri Fire District
Isles of Capri Fire District
Ochopee Fire District
2,779
1,670
1,675
6,124
507.131
Total Unitrd States Department of Agriculture
United States DeD_rimeD. of Housiosr and Urban DenloDment
Direct Programs:
Community Planning and Development
Conununity Development Block Grant Program (COSO)
Community Development Block Grant Program (COSO)
Conununity Development Block Grant Program (CDBO)
Conununity Development Block Grant Program (COBO)
Conununity Development Block Grant Program (CDBO)
Community Development Block Grant Program (CDBO)
Total CFDA
Emergency Shelter Grant (ESG)
Emergency Shelter Grant (ESG)
Total CFDA
14.218 B-07-UC-12-0016 80,758
14.218 B-06-UC-12-0016 1.271.244
14.218 B-05-UC-12-0016 777.556
14.218 B-04-UC-12-0016 251.184
14.218 B-03-UC-12-0016 148.805
14.218 B-02-UC-12-0016 24,522
2,554.069
14.231 S-06-UC-12-0024 96.494
14.231 S-05-UC-12-0024 96,119
192,613
14.235 FLl4B50-6003 32,229
14.235 FLl4B50-6002 49,096
14.235 FLl4B40.6004 88.123
14.235 FLl4B40-6003 12,660
14.235 FL14B40-6002 17,936
200.044
14.239 M-07-UC-12-0217 39,549
14.239 M-06-UC-12-0217 282,122
14.239 M-05-UC-12-0017 103,161
14.239 M-04-UC-12-00 17 266.947
691,779
(Continued)
Continuum of Care
Continuwn of Care
Continuum of Care
Continuum of Care
Continuum ofCarc
Total CFDA
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Home Investment Partnerships Program (HOME)
Total CFDA
See accompanying notes to the schedule of expenditures of federal awards and state projects.
0806-0954714
156
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
Federal or State Grantor/Pan-Throua:h Grantor Program Title
CFDA #/
CSFA#
Indirect Programs:
Department of Community Affairs:
Community Development Block Grant - DRI
14.228
Total United States Department of Housing and Urban Development
United Stlltes DeDartmental tbe Interior
Direct Programs:
Fish and Wildlife Service:
Conservation Collier Land Habitat Restoration Project
Derelict Vessel Removal
15.631
15.631
Total United States Department of the Interior
United States [)e,Dartment of Justice
Direct Programs:
Office on Violence Against Women:
Safe Havens
16.527
Office of Justice Programs:
Anti Trafficking Task Force
16.320
16.595
16.606
Weed and Seed
State Criminal Alien Assistance Program (SCAAP)
Indirect Programs:
Department of Juvenile Justice:
FlRAC
PMP
Total CFDA
16.523
16.523
Florida Office of Attorney General:
Victim of Crime Act (VOCA)
Florida Department of Law Enforcement
Sexual Predator
16.575
16.579
Department of Children and Families:
STOP DCF
16.588
Total United States Department of Justice
0806-0954714
157
Grant/Contract Number
07DB-3V-09-21-01-Z01
401815J021
401816J091
2005CW AXOO 18
2005V1BXOOO2
2006- WS-Q5-0213
Collier COImty
GS120
SB-105
V6007
2007JAGCCOLLlP3009
LN016
168 6
Expenditures
$
3,660
3,642,165
3,500
31.000
34.500
41.593
104,820
50.640
1,429.192
51,104
21.830
72,934
140.395
108.516
144.644
2.092,734
(Continued)
168 6
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITVRES OF
FEDERAL A WARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2007
CFDA #/
Federal or State Grantor/Pa!ls~ThrouEh Grantor Program Title CSFA # Grant/Contract Number Expenditures
United Std~. Denntment nfTr.llln~nortlltioD
Direct Programs:
Federal Aviation Administration:
Marco Apron Phase I & II 20.106 3.12-0142.003-2006 S 376.627
Marco Master Plan Study Update - FAA 20.106 3.12-0142.002.2006 43,925
Immokalcc Taxiway Construction. FAA 20.106 3.12-0031-004.2006 842.802
Immokalee Master Plan Update - FAA 20.106 3.12-0031.003.2006 141,080
Marco Taxiway - FAA 20.106 3.12.0142.00 ).2003 8.658
Everglades Taxiway. FAA 20.106 3.12-0021.001.2003 6,100
Total CFDA 1,419,192
Federal Transit Administration:
Federal Transit Cluster:
Section 5309 ~ FT A 20.500 FL.03.0264.00 53.627
Section 5307 20.507 FL-90-X508-00 153,063
Section 5307 20.507 FL.90-X553-00 107,647
Section 5307 20.507 FL.90-X645 696.454
Total CFDA 957.164
Total Federal Tnmsil Cluster 1,010,791
Indirect Programs:
Florida Department ofTransponation:
Highway Planning and Construction I Pathways 20.205 404677 176,953
Highway Planning and Construction J Sidewalks & Lighting 20.205 415566 22,056
Highway Planning and Construction I BicycleIPcdcstrian Bridges 20.205 415590 40,358
Highway Planning and Construction I Highway Enhancements 20.205 195430 225.000
Highway Planning and Construction I Roadway Lighting 20.205 412646 114,277
Highway Planning and Construction I Sidewalks 20.205 415545 437.500
Highway Planning and Construction I Sidewalks 20.205 415546 321,518
Highway Planning and Construction 20.205 412417 306.480
Highway Planning and Construction 20.205 414327 87,648
Highway Planning and Construction I Landscaping 20.205 419239 50.000
Highway Planning and Construction I Landscaping 20.205 415623 69,800
Highway Planning and Construction I Lighting 20.205 412559 18.635
Totlll CFDA 1,870.225
Section 5303 20.505 AM 356 29.174
Immokalee Circulator 20.509 AM 357 104.397
Total United States Department of Transportation 4,433.779
(Continued)
0806-0954714
158
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 3D, 2007
Federal or State GnDtorlP.Js-Throulil:b Grantor Proarlm Tide
General Service Admlni.!ltratloD
Indirect Programs'
Florida Department of State:
VateT Education Election Reform
Total General Service Admlniltratlon
Envirnnment81 ProtedloD Atrcnr:v
Indirect Programs:
Florida Department ofEnvironmentaJ Protection:
Capitalization Grants for Clean Water State Revolving Funds
Capitalization Grants For Drinking Water State Revolving Funds
Total Environmental Protection Aleney
Election AAlIldlllDce Commkllloa tEAC\
Indirect Programs;
Division of Elections:
Poll Workers Recruitment
Ballot On Demand (HA V A)
Optical Scan Agreement (HAVA)
V oling Systems Assistance (HA V A 2002)
Total Eledion A9Slstanc::e Commiulon (EAC)
United Statel Debartment of Health and Human Servlus
Indirect Programs:
Florida Department of Elder Affairs - Area Agency on Aging for
Southwest Florida, Inc.:
Aging Cluster:
Special Programs for the Aging - Title III, Part B - Grants for
Supportive Services and Senior Centers
Special Programs for the Aging - Title HI, Part B - Grants for
Supportive Services and Senior Centers
Total CFDA
Special Programs for the Aging-Title III, Part C-I-Nutrition Services
Special Programs for the Aging-Title Ill, Part C-I-Nutrition Services
Special Programs for the Aging-Title III. Part C.2-Nutrition Services
Special Programs for the Aging-Title III, Part C-2-Nutrition Services
Total CFDA
Total Aging Cluster:
National Family Caregiver Support - Title III-E
National Family Caregiver Support - Title IIt.E
Total CFDA
0806..0954114
159
CFDA #/
CSFA #
39.011
66.458
66.468
90.401
90.401
90.401
90.401
Grant/Contract Number
Collier County
Collier County
Collier County
Collier County
Collier County
Collier County
Collier County
93.044 OAA 203.07
93.044 OAA 203.06
93.045 OAA 203.07
93.045 OAA 203.06
93.045 OAA 203.07
93.045 OAA 203.06
93.052
93.052
OAA 203.07
QAA 203.06
168 6
Expenditures
$
21.676
2],676
3,291,272
20,941,214
24,232,486
2,595
143,645
542,850
117,801
806.891
213,875
91,612
305,487
28,851
6,426
26,522
11,041
72,840
378,327
68,778
29,061
97,839
(Continued)
16 B ~6
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, Z007
CFDA HI
Federal or State Grantor/Pass- Tbrou2b Grantor Prosr:ram Title CSFAH GrantlContract Number Expenditures
Florida Department of Revenue:
Child Support Enforcement 93.563 CC311 $ 249,635
Total United States Department of Healtb and Human Services 725,801
Corooration for National and Communitv Service
Direct Programs:
Retired and Senior Volunteer Program 94.002 06SRSFLOO4 67.312
Total Corporation for National and Community Service 67,312
DeD.rimeD. of Homeland Securitv
Direct Programs:
FEMA Firefighter Asst.Isle of Capri 97.044 EMW-2006-FG-04104 62.898
Indirect Programs:
Florida Department of Community Affairs:
State Homeland Security Grant 97.004 2007SHSPCOLL2Q5003 25,303
State Homeland Security Grant 97.004 2006SHSPCOLL3N9012 88,000
State Homeland Security Grant 97.004 2006SHSPCOLLl Q5004 18.756
State Homeland Security Grant 97.004 2006LETPCOLL2NlOI2 39,687
State Homeland Security Grant 97.004 2006LETPCOLL3N to 13 97,029
Total CFDA 268.775
Emergency Management Performance Grant 97.042 0780.04-09-21-01-320 42.031
State Homeland Security Grant 97.067 06-DS-3W-09-21-0 1-282 3,249
State Homeland Security Grant 97.067 07-DS-5N-09-21-Q1 53.848
State Homeland Security Grant 97.067 07-DS-5N.09.21-Q1-21O 36.523
Total CFDA 93.620
Total Department of Homeland Security 467.324
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 37,031,799
(Continued)
0806.()954714
160
168 6
COLLlERCOUNlY, FWRIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2001
Federal or State GrantorlPass-ThrouKh Grantor Program Title
CFDA#/
CSFA #
GrantlContract Number
Expenditures
Florida Extcutive Office of the Governor
Office of Tourism, Trade and Economic Development:
Total Florida Housing Finance Corporation
31.006 Collier County $ 3.815
31.030 OT05-136 132,616
136.431
31.003 01-CO! 251.391
31.003 OS-CO! 2,124,800
2,316,191
31.039 4600000589 1.100.000
31.039 4600000610 112.000
1.212.000
3,588.191
45.030 01-ST-12 182,198
45.030 06-ST-12 165,894
45.030 05-ST-12 5,883
353.915
52.002 01-cT -96-Q6-F6-A 1-043 9,898,650
52.008 01-80-04-09-21.01-320 102.421
52.023 01-CP-Il-09-21-01-244 8.100
10,009.171
52.901 FY 01 625.181
52.901 FYQ6 2,188.361
52.901 FY05 1,231.152
4,045.300
(Continued)
Paradise Coast Slueway
Rural Infrastructure, Immokalee Airport
Total Florida Executive Offic:e Drlbe Governor
Florida DrD_rlmeD. of Environmental Prntrdinn
South Marco Beach Nourishment
Beach Erosion Control Program
Total CSFA
South County Reverse Osmosis Expansion
Pelican Bay Reclaimed Water Facility Phase II
Tola! CSFA
Total Florida Department of Environmental Protection
Florida Denartment neStalt and SeeretJlrv of State
State Aid to Libraries
State Aid to Libraries
State: Aid to Libraries
Total Florida Department of State
Florida Deoartment ofCommlloitv Affairs
Florida Forever Act I Gordon River Greenway Park
Emergency Preparedness and Assistance: Trust Fund
Hazardous Materials Analysis
Total Florida Department oCCommunlty Affairs
Florida Houling- Finance Cornnratlon
State: Housing Initiatives Partnership Program (SHIP)
State Housing Initiatives Partnership Program (SHIP)
State Housing Initiative:s Partnership Program (SHIP)
0806-0954714
161
168 6
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
CFDA HI
Federal or SlBte GrantorlPan-Throulh Grantor Proeram Title CSFA H GrantIContract Number Expenditures
Florida Denarbnent of TraDsDortation
Trip & Equipment Grant 55.001 ADF73 S 445,734
Rural Area Capital Equipment 55.001 ADG73 46,553
Trip & Equipment Grant 55.001 ADT48 140,914
Total CSFA 633,201
Transportation Disadvantaged Planning Grant 55.002 AOF83 10.189
Transportation Disadvantaged Planning Grant 55.002 AOR72 12.776
Total CSFA 22.965
Conceptual ERP 55.004 ANK47 6,285
Marco Mitigation 55.004 A1526 44
Marco Land Acquisition 55.004 A1935 29,054
Marco Mitigation Phase II 55.004 ANHI7 481
Everglades Taxiway 55.004 ANHI9 339
Immokalcc Emergency Generator 55.004 ADFIO 48,253
Marco Fuel Fann 55.004 AOOIO 140,175
Immokalee Master Plan Study 55.004 ANF46 3.713
Marco Master Plan Study 55.004 ANF50 1.156
Immokalce Taxiway C Construction 55.004 ANF44 22,179
Marco Apron Phase I & II 55.004 AOK80 1.499
Marco Apron Phase I & II . Land Acquisition 55.004 AOK79 8,405
Total CSFA 261.583
PD&E Study SR82 55.008 419950-2-22-01 55.616
State Block Grant 55.010 AM350 392.863
Marco Island Transit 55.012 ANL03 44.674
Red Route Service Development 55.012 AOK37 88,941
Total CSFA 133,615
Jolly Brid8e FeasabOity Study 55.019 ANY74 256.580
Transportation Regional Incentive Program I CR951 GO 10 Imk 55.026 420991-1-58-01 3,198.313
Total Florida Department of Transportation 4,954,736
Florida DeD8rtmcnt of Health
Emergency Medical Services County Award 64.005 C6011 30,348
Emergency Medical Services County Award 64.005 C5011 18.031
Total Florida Department of Health 48,379
(Continued)
0806-0954714
162
16Bi6
COLLIER COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND STATE PROJECTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
CFDA #/
Federal or State Grantor/Pas... Throulth Grantor Prol!ram Title CSFA # GrantIContract Number Expenditures
Florida Dcn.rlment of Elder Affairs
Area Agency on Aging for Southwest Florida, Ine:
Home Care for the Elderly 65.001 HCE 311/312.203.07 S 1.676
Home Care for the Elderly 65.001 HCE 3151316.203.06 5,624
Total CSFA 7,300
Alzheimets Disease Initiative 65.004 AD! 203.07 20,800
Alzheimets Disease Initiative 65.004 AD! 306.203.06 76,360
Alzheimer's Disease Initiative 65.004 ADI305.203.05 2,427
Total CSFA 99.587
Conununity Care for the Elderly 65.0!0 CCE 203.07 122,329
Community Care for the Elderly 65.010 CCE 304.203.06 492.627
Total CSF A 614.956
Total Florida Department of Elder Affairs 721.843
Florida FI!lh and Wildlife Conservation Commlulon
Boater Education 77.006 6174 7.832
Total Florida Fisb and Wildlife Conservation Commission 7.832
Florida Deollrtment of Juvenile .Jultice
TRAC 80.029 DP-576 66,108
Total Florida Department of Juvenile Justice 66,108
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE S 23.931.972
0806-0954714
163
168 6
Collier County, Florida
Notes to the Schedule of Expenditures of Federal
Awards and State Projects
Year Ended September 30, 2007
1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards and State Projects (the
Schedule) includes the Federal and State grant activity for Collier County, Florida (the County)
and is presented on the modified accrual basis of accounting for expenditures accounted for in
the governmental funds and the accrual basis of accounting for expenditures in proprietary funds.
Under the modified accrual basis, revenue is recognized if it is both measurable and available for
use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if
measurable. Under the accrual basis, expenditures are recognized in the period liabilities are
incurred.
The information in the Schedule is presented in accordance with the requirements of U.S. Office
of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and Section 215.97, Florida Statutes. Therefore, some amounts
presented in the Schedule may differ from amounts presented, or used in the preparation of, the
basic financial statements for the fiscal year ended September 30, 2007.
2. State Revolving Funds
Reconciliation of State Revolving Funds (CFDA# 66.458 and CFDA# 66.468) expended to cash
received during fiscal year 2007:
Expenses reported on Single Audit Schedule
Reimbursements received for prior year expenses
Current year retainage not claimed
Less current year expenses that have not been reimbursed
Prior year expenditures reported but not reimbursed
Total State Revolving Fund reimbursements received
$ 24,232,486
868,046
(485,312)
(788,199)
679,729
$ 24,506,750
0806-0954714
164
Collier County, Florida
168 16
Notes to the Schedule of Expenditures of Federal
Awards and State Projects (continued)
3.SubgrantAlVards
The following subgrant awards were made by Collier County during fiscal year 2007:
PrOlUam Title
CFDA/CSFA
Number
Subgrant
Amount
Community Development Block Grant
Emergency Shelter Grant
Continuum of Care
Home Investment Partnerships Program
14.218
14.231
14.235
14.239
$ 2,257,196
192,613
200,044
401,477
4. Contingency
The grant revenue amounts received are subject to audit and adjustment. If any expenditures or
expenses are disallowed by the grantor agencies as a result of such an audit, any claim for
reimbursement to the grantor agencies would become a liability of the County. In the opinion of
management, all grant expenditures are in compliance with the terms of the grant agreements and
applicable federal and state laws and regulations.
0806-0954114
165
Collier County, Florida
168 '6
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2007
Part I-Summary of Auditor's Results
Financial Statements Section
Type of auditor's report issued:
Internal control over fmancial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects Section
Internal control over major programs:
Material weakness( es) identified?
Significant deficiency(ies) identified that are not
considered to be material weaknesses?
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with section .510(a) ofOMB
Circular A -13 3, Section 215.97, Florida Statutes, and
Chapter 10.550, Rules of the Auditor General, State
of Florida?
0806-0954714
166
X Yes
X Yes
Yes
X Yes
Unqualified
No
None reported
X No
No
X Yes None reported
Qualified for the Community
Development Block Grant Program
(CFDA# 14.218), the Home Investment
Partnerships Program (CFDA# 14.239),
the State Housing Initiatives
Partnership Program (CSFA# 52.901),
and the State Criminal Alien Assistance
Program (CFDA# 16.606); and
Unqualified for all other major
programs
X Yes
No
Collier County, Florida
168
6
Schedule of Findings and Questioned Costs (continued)
Identification of major federal
programs and state projects:
Federal Programs
CFDA Number
14.218
14.239
16.606
20.205
66.468
State Projects
CSFA Number
37.039
52.901
52.002
55.026
Dollar threshold used to distinguish
between Type A and Type B
programs:
. Federal Programs
. State Projects
Auditee qualified as low-risk auditee?
0806-09:54714
Federal Al!encvlName of Federal Prol!ram
U.S. Department of Housing and Urban Development:
Community Development Block Grant Program (CDBG)
Home Investment Partnerships Program (HOME)
U.S. Department of Justice: State Criminal Alien
Assistance Program (SCAAP)
U.S. Department of Transportation: Highway Planning
and Construction
U.S. Environmental Protection Agency: Capitalization
Grants For Drinking Water State Revolving Funds
State Al!encvlName of State Project
Florida Department of Environmental Protection:
Statewide Surface Water Restoration and
Wastewater Projects
Florida Housing Finance Corporation:
State Housing Initiatives Partnership Program
(SHIP)
Florida Department of Community Affairs:
Florida Forever Act
Florida Department of Transportation:
Transportation Regional Incentive Program
$ 1.110.954
$ 717.959
Yes
X No
167
Collier County, Florida
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6
Schedule of Pin dings and Questioned Costs (continued)
Part II-Financial Statement Findings Section
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts,
violations of provisions of contracts and grant agreements, and abuse related to the fmanciaI
statements for which Government Auditing Standards require reporting.
Finding 2007-01
Fixed Asset Capitalization and Depreciation
Criteria
Controls should be in place to ensure fixed assets are properly capitalized and depreciated.
Condition
In performing the fiscal 2007 audit of fixed assets, we identified certain differences resulting in
adjustments to the County's basic financial statements. These differences included a prior period
restatement to expense amounts incorrectly capitalized, and reclassifications of amounts
improperly transferred to and from construction-in-progress.
Context
Approximately $4.2 million in maintenance costs that should have been expensed in prior years
were recorded as capital assets as of September 30, 2007. Certain completed projects remained in
construction-in-progress and certain uncompleted projects had been transferred to fixed assets.
Effect
Audit adjustments were recorded to correct the overstatement of net assets of the governmental
activities and certain capital assets were reclassified between depreciable and nondepreciable
capital asset categories.
Cause
In years prior to 2007, accounting personnel improperly capitalized costs related to a road
maintenance contract. In addition, the County's criteria for the transfer of projects from
construction-in-progress to fixed assets do not ensure that transfers are recorded when the related
projects are substantially complete.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Recommendation
The County should revise its construction and fixed assets accounting processes and procedures
to include:
. Review of contract terms for significant projects to determine proper classification of
project costs as capital assets or maintenance expense
. Expanded definition of capital assets
. Enhanced criteria for transfer of projects from construction-in-progress to fixed assets
. Periodic reconciliations of construction-in-progress costs to determine the proper and
timely capitalization of project costs
In addition, we recommend that the County utilize a fixed asset software program to accumulate
construction-in-progress costs. Much of the process involved in reconciling capital construction
costs is labor intensive and could be better automated. These expenditures should be reconciled
during the year rather than performing a comprehensive review at the end of the fiscal year. This
would accelerate this portion of the financial statement close process and reduce the risk of
manual errors.
Management Response and Corrective Action Plan
The Finance and Accounting Department concurs that all contracts need stringent initial review
to ensure proper expenditure classification. The initial review of contracts will be taken up as
part of the Board of County Commissioners' agenda review. Criteria for transfer of projects from
construction in progress to depreciable assets will not be purely quantitative for future fiscal
years. Increased reliance will be placed upon County departments and project managers for
information relating to capital asset in service dates. Reconcilement of construction in progress
costs are now occurring on a monthly basis. The County is currently working on a project
management system that will be fully integrated with the County's existing SAP database.
Construction in progress status information will be captured within that project management
system and will be followed with a confirmation process to ensure capital assets are captured
appropriately and efficiently.
Finding 2007-02
Accounting for Impact Fee Deferrals
Criteria
Controls should be in place to ensure the proper tracking and recording of impact fee deferrals.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Condition
During fiscal 2007 the Clerk's internal audit department performed a review of the County's
public records. This review identified approximately $5.6 million in impact fee deferrals that had
not been recorded on the County's books. This balance was recorded as a prior period
restatement to increase net assets in the government-wide fmancial statements and water and
sewer fund.
Context
As a result of these errors, the beginning net assets of the governmental activities, business type
activities and the water and sewer fund were restated.
Effect
Audit adjustments were recorded to correct the understatement of net assets of the governmental
activities, business type activities and the water and sewer fund.
Cause
The County's process for tracking impact fee deferrals in prior years was not adequate in
ensuring that all contracts were recorded.
Recommendation
The County should review and revise its process for identifying impact fee deferrals to ensure
that all contracts are recorded.
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Schedule of Findings and Questioned Costs (continued)
Management Response and Corrective Action Plan
Moving forward, a standard process will be instituted to ensure that impact fee deferrals are
communicated by the County to Clerk's Finance. Once both an impact fee deferral agreement
has been recorded in Official Records and the transaction has been posted to the CD Plus system
in Community Development Services, the County will provide notification to the Finance
Department to record the deferral in SAP. In addition, on a quarterly basis Clerk's Finance will
reconcile impact fee deferrals recorded in SAP against the County's list of deferrals to validate
that all deferrals have been recorded.
Finding 2007-03
Accounting for Nonexchange Revenue
Criteria
GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions,
sets forth the accounting criteria for recognition of revenues for nonexchange transactions.
Condition
In 2007 and prior years, the County has recorded funds received for the Emergency 911 Wireless
Tax as deferred revenue. The criteria for revenue recognition pursuant to GASB 33 related to this
tax had been met.
Context
Approximately $1.2 million in funds recorded as deferred revenue as of September 30, 2007
related to prior years. Approximately $100,000 of additional funds were received in 2007 and
recorded as deferred revenue as of September 30, 2007.
Effect
An audit adjustment was recorded to correct the understatement of revenue.
Cause
The County has consistently recorded all Emergency 911 Wireless Tax receipts as deferred
revenue. The related revenue was recorded when the funds were ultimately expended; however,
the criteria for revenue recognition had been met at the time the funds were received.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Recommendation
The County should review the supporting documentation for all significant nonexchange revenue
streams to determine when the revenue recognition criteria in GASB 33 have been met.
Management Response and Corrective Action Plan
We have reviewed all non-exchange revenue transactions of which we are aware to determine
that the recognition criteria of GASB 33 has been met.
Finding 2007-04
Accounting for State Housing Initiatives Partnership (SHIP) Deferred Impact Fee
Receivables
Criteria
All receivables should be measured net of estimated uncollectible amounts.
Condition
During our audit of impact fee deferrals, we noted that the County recorded notes receivable of
approximately $2.8 million which represented SHIP-related deferred impact fee credit
agreements entered into in prior years. Under the County's Consolidated Impact Fee Ordinance
(2001-13), the SHIP deferral program allows for the waiver of the impact fee revenue after 15
years unless an agreement is defaulted. In the past, the County has not recorded a reserve for
SHIP notes that are not expected to be collected.
Context
In fiscal 2007, the County recorded a reserve for uncollectible SHIP notes of approximately $2.8
million.
Effect
An audit adjustment was recorded to correct the overstatement of net assets related to SHIP notes
receivable.
Cause
The County does not have a formal policy in place to reserve for SHIP related deferred impact
fees.
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168 6
Schedule of Findings and Questioned Costs (continued)
Recommendation
The County should establish and implement a policy for reserving impact fee amounts that are
not expected to be collected.
Management Response and Corrective Action Plan
We agree that the asset needs to be recorded at net realizable value and will work with the
department to establish an appropriate allowance for financial statement reporting purposes.
Part III-Federal Awards and State Projects
Findings and Questioned Costs Section
This section identifies the audit findings required to be reported by Circular A-133 section
.510(a), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General,
State of Florida, such as material weaknesses, significant deficiencies, and material instances of
noncompliance, including questioned costs, as well as any abuse findings involving federal
awards or state projects that are material to a major program.
Finding 2007-05
Federal Program lriformation
U.S. Department of Transportation
Highway Plarming and Construction
CFDA Number: 20.205
Criteria
Cash Management: Effective internal controls over the request for reimbursement of federal
funds from the grantor agency are required to be in place.
Condition
The same individual IS responsible for both completing and approving the reimbursement
requests.
Questioned Costs
N/A
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Schedule of Findings and Questioned Costs (continued)
Context
The grant coordinator prepares the reimbursement requests and submits them to the grantor
agency for reimbursement. However, there is no review of the reimbursement requests by
someone other than the preparer for completeness and accuracy.
Cause/Effect
The County does not have effective supervisory review of reimbursement requests and also
lacks adequate segregation of duties between the person preparing and approving the
reimbursement request.
Recommendation
The County should ensure review and authorization by someone other than the preparer is
obtained in order to properly segregate the duties of requesting and approving reimbursement
requests, and to help ensure completeness and accuracy of the requests. Such reviews and
approvals should be documented to evidence that the review took place.
Views of Responsible Officials
Management agrees with the comment.
Planned Corrective Action
The following actions will be implemented.
All grant reimbursement requests will be reviewed by the appropriate Official(s).
For all LAP funded highway projects, the Grants Coordinator will prepare the reimbursement
request. The Operations Manager will review and approve the request prior to submission to the
grantor and Finance. The Operations Manager's review will be documented to provide an audit
trail to demonstrate segregation of duties.
For all grants other than LAP, invoices/reimbursement requests will be developed and/or
approved by the appropriate project manager and forwarded to the Grants Coordinator for
review, approval and processing. The Grants Coordinator will provide Finance a copy of the
grant invoices/reimbursement requests with all reconciliation documentation attached the same
day the request is submitted to the grantor. Payments from the grantor will continue to be
received by the Finance Department.
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Schedule of Pin dings and Questioned Costs (continued)
Finding 2007-06
State Program Information
Florida Department of Environmental Protection
Statewide Surface Water Restoration and Wastewater Projects
CFSA Number: 37.039
Criteria
Reporting: Reports submitted to the grantor agency should include all activity of the reporting
period, be supported by applicable accounting or performance records, and be fairly presented in
accordance with project requirements.
Condition/Context
The project's grant agreement required that a final report be submitted to the South Florida
Water Management District (the "District," pass though entity) by August 1, 2007 to provide a
final summary of the project. The fmal report to the grantor agency indicated "Scheduled Value"
for the deliverables totaling $16.5 million. The County was not able to provide support for or
reconcile this total to the expenditures for the project as recorded in the general ledger system.
However, we were able to agree the District's cost share in the final report to the grant agreement
and we noted that the expenditures in the general ledger system and in the fmal report were
significantly higher than the District's cost share under the grant agreement.
Questioned Costs
N/A
Cause/Effect
The County did not maintain support for or reconcile the amount reported in the final project
report submitted to the grantor to the expenditures for the project as recorded in the general
ledger system. Accordingly, we were unable to verify the accuracy and completeness of the
amounts reported as required by the State' compliance supplement.
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained. Additionally, a more organized/systematic
approach should be taken to better identify specific project expenditures to be wholly or partially
reimbursed by a grantor agency vs. other general project expenditures.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Views of Responsible Officials
Management agrees with the Auditor comment. The first paragraph below explains the specific
circumstance that generated the comment. The second paragraph defmes the corrective action to
be taken.
Planned Corrective Action
At the completion of the project (actua11y four different projects combined under CFSA Number:
37.039), staff recorded that the incurred costs were equal to the original costs projected in the
grant. In fact, the actual costs incurred were greater than anticipated in the grant. As a result,
since actual costs exceeded the costs projected in the grant, staff felt that this satisfied the grant
agreement.
For the current year and going forward, the Public Utilities Engineering Department Grant
Coordinator will write and submit all interim and final project reports to the grantor, with
guidance on the exact project status from the respective project manager. The Coordinator will
maintain all project documents for each grant. Invoices and payment receipts for grant
reimbursements are issued by the Utility Billing and Customer Service section of Public Utilities.
Finally, an Excel spreadsheet will be created to track and identifY expenditures associated with
purchase order numbers by grant task.
Finding 2007-07
Federal Program Information
U.S. Department of Justice
State Criminal Alien Assistance Program (SCAAP)
CFDA Number: 16.606
Criteria
Reporting: The County applied for the FY 2006 SCAAP grant and received the award funds
during fiscal year 2007. The FY 2006 SCAAp reporting period is from July 1, 2004 through
June 30, 2005. Applicants provide correctional officer staffing and salary costs, the total of all
inmate days, and details about eligible inmates housed in their correctional facilities during this
12-month reporting period. Using financial data supplied on the application, including each
applicant's annual correctional officer salary costs, the award amount is determined pursuant to
an established formula.
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6
Schedule of Findings and Questioned Costs (continued)
The "FY 2006 SCAAP Guidelines" indicates the following with respect to the "Correctional
Officer Salary Calculation:"
"Salary infornlation reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for
the applicable reporting period, not a projection, estimate, or average. Correctional officer
salary costs may include premium pay for specialized service (e.g., bilingual officers), shift
differential pay, and fixed-pay increases for time in service. It may also include overtime
required by negotiated contract, statute, or regulation (e.g., union agreements, contractual
obligations, required post staffing minimums, etc )"
In the "FY 2005 SCAAP Guidelines," the last sentence above made reference to benefits and
stated that correctional officer salary costs "may also include employee benefits and overtime
required by negotiated contract, statute, or regulation (e.g., union agreements, contractual
obligations, required post staffing minimums, etc). Oftice of Management and Budget (OMB)
Circular A-87 (www.whitehousq'.ov/omb/circulars/a087/toc.html) provides general guidance on
how benefits are defined for units of government." However, the FY 2006 SCAAP Guidelines
omitted this reference and do not provide any mention of benefits being a qualifying officer
salary cost.
We contacted the DOJ for clarification with respect to the FY 2006 SCAAP award and were
informed that "only actual salary costs, regular salary or overtime required by either contractual
agreement or written policy, were allowable costs for the FY 2006 SCAAP applications."
Condition/Context
In addition to overtime which appears to be allowable based on the information stated above, the
County included wage benefits (i.e. incentives, training costs, retirement, group life and health
insurance, and workers compensation) totaling $5.2 million in the calculation of total
correctional salaries reported in the SCAAP grant application for the FY 2006 SCAAP grant.
Questioned Costs
N/A
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause
We were informed by representatives of the Collier County Sheriffs Office (Sheriff) that in
connection with their FY 2005 SCAAP grant application they verbally communicated with the
head of SCAAP in Washington D.C. who stated that benefits were an allowable salary cost, and
that the rules had been recently amended to provide for the inclusion of overtime and benefits
which were previously not allowable. Additionally, the Sheriff provided documentation
indicating that beginning with the FY 2005 SCAAP grant, the Sheriff began including allowed
overtime as well as benefits and they so informed the DOJ via an electronic submission of an
explanation for the increase in salary costs from the prior year's application which exceeded
15%. The application for the FY 2005 SCAAP grant was accepted by the DOJ. There is no
documentation in the SCAAP guidelines and related materials of the change in rules as described
with respect to the FY 2006 SCAAP grant.
Effect
The award amount received for the FY 2006 SCAAP grant would have been impacted by the
amount of benefits included in the salary cost total reported on the grant application.
Recommendation
The Sheriff should review program guidelines and contact the grantor agency if reporting criteria
are not clearly stated or if clarification is needed in interpreting information contained in the
program guidelines. Written documentation from the grantor agency should be retained to
support any such correspondence.
Views of Responsible Officials and Planned Corrective Action
The Collier County Sheriffs Office (CCSO) concurs with this recommendation to contact the
grantor agency in writing, as is CCSO's practice, if reporting criteria are not clearly stated or if
clarification is needed in interpreting information contained in the program guidelines. Written
documentation from the grantor agency will be retained, as CCSO normally does, to support any
such correspondence.
The Collier County Sheriffs Office has received SCAAP awards every year since 1997. SCAAP
guidelines are followed regarding all application submission requirements and eligible and
ineligible application inclusions. Questions arise when SCAAP Guidelines and SCAAP online
application forms have used different verbiage. The Bureau of Justice Assistance' Grant
Management System (GMS) has a "SCAAP HELP" link in its SCAAP application site that is
available for applicant clarification or to resolve conflicting statements. SCAAP HELP refers
grantees directly to the applicable year's State Criminal Alien Assistance Program Guideline for
proper direction in resolving questionable grant rules to follow for or in the grant application.
The SCAAP Guidelines clearly state if a cost is eligible or ineligible. For example the FY 2006
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
SCAAP Guidelincs clearly indicate in the "Correctional Officer Definition" who does and does
not qualify for inclusion in the officer count.
The "FY 2006 SCAAP Guidelines" with respect to the "Correctional Officer Salary Calculation"
is included in the audit Criteria section above. There is no reference to benefits not being eligible
for inclusion in the "actual salarv expenditures" for the application reporting period. The 2006
SCAAP Guidelines are silent about benefits and management believes that it was reasonable to
include them in the calculation. We do not believe it is logical for benefits to be an allowable
cost for only one year (FY2005) and then to revert back to years prior to 2005.
When comparing the above referenced SCAAP 2006 Guidelines Correctional Officer Salary
Calculation section to the SCAAP 2005 Guidelines Correctional Officer Salary Calculation
section, commencing in 2005, benefits are allowable inclusions in the correctional officer salary
calculation. No SCAAP Guideline after 2005 states that benefits are excluded. The CCSO
maintains DOJ/BJA did not exclude benefits in SCAAP Guidelines after 2005 and that SCAAP
2005 Guidelines supersede 2002 SCAAP Frequently Asked Questions about the eligibility of the
inclusion of benefits in the SCAAP 2006 corrections ofticer salary calculation.
FY 2005 SCAAP Guidelines indicates the following with respect to the "Correctional Officer
Salary Calculation:"
"Salary information reported in the SCAAP application must reflect the total salaries and
wages paid to full- and part-time correctional officers and others who meet the SCAAP
definition. The reported sum should total the jurisdiction's actual salary expenditures for
the applicable reporting period, not a projection, estimate, or average. Correctional officer
salary costs may include premium pay for specialized service (e.g., bilingual officers), shift
differential pay, and fixed-pay increases for time in service. It mav also include emplovee
benefits and overtime required by negotiated contract, statute, or regulation (e.g., union
agreements, contractual obligations, required post staffing minimunls, etc). Office of
Management and Budget (OMB) Circular A-87 (www.whitehouse.~ov/oll1b/
circulars/a087/toc.html) provides general guidance on how benefits are defined for units of
government."
To correct arty possible questionable DOJ/BJA verbiage in the future, however, management will
request written clarification, as it normally does. from the DOJ/BJA when there is an unclear
SCAAP directive, contradiction, or what appears to be an omission in SCAAP Guidelines and
not depend on SCAAP Guidelines to be complete. Nonetheless, there is a duty on the part of the
grantor agency (DOJ/BJA) to explicitly state and include specific language in the SCAAP
Guidelines each year about what costs are eligible and ineligible for application content.
Suppressing words in SCAAP Guidelines by DOJ/BJA does not indicate benefit eligibility
exclusion. It should also be noted that grantees and auditors are not privy to the numbers
DOJ/BJA uses in the formula to calculate and determine SCAAP awards which are only partial
reimbursement for the costs associated with the control and custody of criminal illegal aliens.
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Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Grantees must interpret grantor developed applications that may omit important application
sections that would offer both the grantor and the grantee with application field options to
indicate what is in compliance with grantor guidelines (e.g., a separate field for wages, a separate
field for fringe benefits, a separate field for overtime). Also, there is the concept of fixed
compensation that is not addressed as eligible or ineligible by DOJ/BJA in their SCAAP
Guidelines, and would be applicable to grantees nationwide since fixed compensation includes
all benefits. This would mean that DOJ/BJA would be obligated, unless explicitly stated about
what would be ineligible, to include wages, fringe benefits, and overtime in actual salary
expenditures. Management believes the intent of the SCAAP 2005 Guidelines was there to
continue to permit the inclusion of benefits in the correctional officer salary calculation since
DOJ/BJA did not state otherwise in writing.
Finding 2007-08
Federal/State Program lriformation
Schedule of Expenditures of Federal Awards and State Financial Assistance Projects
Criteria
Reporting: Recipients of federal and state awards are to maintain adequate controls over their
books and records in order to prepare appropriate fmancial statements, including the Schedule of
Expenditures of Federal Awards and State Financial Assistance Projects (OMB Circular A-B3,
Section .300(d) and Section 215.97, Florida Statutes).
Condition/Context
The Schedule of Expenditures of Federal Awards and State Financial Assistance Projects (the
Schedule) provides total federal and state fmancial assistance project awards expended for each
individual federal and state program. Various revisions were required from the original Schedule
to the final Schedule due to errors and/or omissions that were identified by the County
throughout the reconciliation process which extended for several months or through inquiries we
posed in relation to specific grants or variances from prior year amounts. We were also notified
of a communication the County recently received from a grantor agency indicating that certain
programs were not reported in the Schedule in prior years.
Questioned Costs
N/A
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.~".__.._..._-" .-- _.__....._-^~..~---"._---,~.....""---,,.
16B 6
Collier County, Florida
Schedule of Findings and Questioned Costs (continued)
Cause/Effect
The Schedule is centrally developed through coordination with various departments and agencies
within the County and the accuracy and completeness of the Schedule is dependent upon the
accuracy and completeness of information provided by the various departments. Certain
departments did not report accurately or timely, and therefore the original fiscal 2007 Schedule
required updating to correct any identified errors and/or omissions. Additionally, the programs
erroneously omitted from the prior year's Schedule, as notified by a grantor agency, were
omitted because the respective department did not appropriately identify the awards as grants
and therefore did not report the information to the Clerk's finance department, which is
responsible for preparation of the Schedule.
Recommendation
The County should implement additional procedures and internal controls to ensure the
information used to develop the Schedule is accurate and complete and submitted on a timely
basis.
Views of Responsible Officials
Management agrees with the Auditor comment.
Planned Corrective Action
The County will review its current policies, processes and procedures. Additional procedures and
internal controls will be developed and implemented to monitor the information used to develop
the Schedule for grants and aid programs. A major consideration will be a central coordination
point for the processing and control of reporting requirements.
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Schedule of Findings and Questioned Costs (continued)
Finding 2007-09
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Criteria
Subrecipient Monitoring: Recipients of HOME funding should have policies and procedures in
place to indicate how subrecipients are monitored. This should include an understanding of the
scope, frequency, and timeliness of monitoring activities and the number, size, and complexity of
awards to subrecipients. Entities that pass-through funds to subrecipients are also required to
obtain and review the subrecipients' audit reports for the project year. For subrecipients that are
not required to submit a copy of the reporting package to a pass-through entity because there
were no audit fmdings, the pass-through entity may use the information in the Federal Audit
Clearinghouse database as evidence to verify that the subrecipient had no audit findings and that
the required audit was performed.
In addition, the "Monitoring" section in the County's One-Year Action Plan presented to and
approved by HUD in April 2006, states that "Each project is monitored on an ongoing basis
though a combination of desk and phone monitoring, site visits and monthly reporting. Onsite
monitoring of subrecipients is scheduled and completed annually by the Project Management
Staff. A checklist is completed and reviewed to ensure all aspects of the activity are carried out
in accordance with applicable regulations."
Condition/Context
While the County has a broad standard of monitoring subrecipients, outlined in the One-Year
Action Plan, they do not have detailed policies and procedures in place to carry out such
monitoring. We selected two of the three subrecipients (Big Cypress, Inc. and Collier County
Housing Authority-CCHA) to which HOME funds were disbursed during the fiscal year. At the
time we performed our testing, we noted Collier County had not obtained or reviewed the audit
reports for either subrecipient during the year. County staff subsequently obtained the audit
reports. We also noted that there was no evidence of the monitoring (phone, desk or onsite
reviews) as described by the One-Year Action Plan, approved by HUD.
Questioned Costs
N/A
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Schedule of Findings and Questioned Costs (continued)
Cause/Effect
Collier County does not have established procedures regarding subrecipient monitoring. This
may lead to undetected audit findings at the subrecipient or pass-through entity level. In addition,
the County is not in compliance with the subrecipient monitoring requirement.
Recommendation
We recommend that management document and implement the policies and procedures required
to properly monitor subrecipients, and that management keep records to evidence such
monitoring.
Views of Responsible Officials
Management agrees with this finding.
Planned Corrective Action
Staff performs extensive desk and phone monitoring of all subrecipients. Desk monitoring occurs
during the receipt, analysis and processing of each payment request and phone monitoring occurs
on an ongoing basis. In addition, subrecipients provide a monthly status report on projects which
is a type of monitoring. Annual audits are requested from each subrecipient and those noted in
the finding have been received and placed in their files.
Management will, however, document and implement more detailed policies and procedures
regarding monitoring and ensure that accurate records are kept as evidence of project monitoring.
Details should include dates of phone and desk monitoring, items covered and any follow-up
needed.
Finding 2007-10
Federal Program Information
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Criteria
Eligibility: HOME funds are provided only to eligible recipients.
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6
Schedule of Findings and Questioned Costs (continued)
Condition/Context
During our testing of the HOME grant and review of the participants' files that were selected for
eligibility testing, we noted that one participant to whom HOME funds were provided during the
year was assigned an incorrect file number and was actually a participant for the CDBG.
Questioned Costs
$5,500
Cause/Effect
The amount disbursed to the participant was incorrectly charged to the wrong expenditure
account and the wrong federal program. This in turn affected the FY 2007 Schedule of
expenditures for the HOME and CDBG programs. Based on a review of the HOME detail of
expenditures, we noted that this was an isolated incident; however, controls were not in place to
identify this error.
Recommendation
We recommend that management review monitoring controls to ensure that participants are
charged to the correct program and that any errors are identified and corrected.
Views of Responsible Officials
Management agrees with this finding.
While the amount disbursed to the participant was incorrectly charged to the wrong
expenditure/program account, this was an isolated incident due to the transposition of a number.
There are at least two levels of review to determine the correct account code. In this one
particular case, it was entered incorrectly. The procedure to determine eligibility to the CDBG
program was followed correctly and it was determined that the recipient qualified to receive
assistance from the CDBG funds.
Planned Corrective Action
1) A journal entry will be processed to post the expenditure to the proper fund account.
2) Controls over data entry will be reviewed, and if necessary, revised.
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Schedule of Findings and Questioned Costs (continued)
Finding 2007-11
Federal/State Program Information
Federal Agency: US Department of Housing and Urban Development (HOD)
Home Investment Partnerships Program (HOME) - CFDA No. 14.239
Community Development Block Program (CDBG) - CFDA No. 14.218
State Agency: Florida Housing Finance Corporation
State Housing Initiatives Partnership Program (SHIP) - CSF A No. 52.901
Criteria
Allowable Costs: Compensation for personnel services rendered in connection with Federal
awards must be documented and supported as described in OMB Circular A-87, Cost Principles
for State, Local and Indian Tribal Governments (A-87). Additionally, pursuant to the SHIP
Program Manual, administrative costs for the SHIP state program should also be in conformance
with A-87. According to A-87, the standards regarding time distribution are in addition to the
payroll documentation and require the following:
. Charges to Federal awards for salaries and wages, whether treated as direct or indirect
costs, will be based on payrolls documented in accordance with the generally accepted
practice of the governmental unit and approved by responsible official(s) of the
governmental unit.
· Where employees are expected to work solely on a single Federal award or cost
objective, charges for their salaries and wages will be supported by periodic
certifications that the employees worked solely on the program for the period covered
by the certification. These certifications will be prepared at least semi-annually and will
be signed by the employee or supervisory official having first-hand knowledge of the
work performed by the employee.
. Where employees work on multiple activities or cost objectives, a distribution of their
salaries or wages will be supported by personnel activity reports or equivalent
documentation which meets the following standards (unless a statistical system or other
substitute system has been approved by the cognizant Federal agency):
a) must reflect an after-the-fact distribution of the actual activity of each employee,
b) must account for the total activity for which each employee is compensated,
c) must be prepared at least monthly and must coincide with one or more pay periods,
and
d) must be signed by the employee.
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Schedule of Findings and Questioned Costs (continued)
e) Budget estimates or other distribution percentages determined before the services
are performed do not qualify as support for charges to Federal awards but may be
used for interim accounting purposes.
Condition/Context
We noted that the County's documentation supporting payroll allocations for employees that
work on multiple grants did not meet federal standards as described in OMB Circular A-87 as
described above. The County uses a Personnel Activity Report (PAR) to allocate payroll salaries
for employees who work on multiple activities. These reports are prepared annually, at the
beginning of each fiscal year, based on an estimate of the time the employees are expected to
work on a grant. The PAR does not show the total activity for which an employee is
compensated and does not require the employee's signature.
The County's Department of Housing and Human Services (the department responsible for the
administration of the HOD grants) initiated a timesheet process in FY 2006 whereby employees
in the department indicate the projects (HOME, SHIP, or CDBG) to which their time relates each
week. These timesheets are signed by the employees and supervisors and kept in the department
for internal control purposes. These timesheets are not provided to the County's payroll
department to adjust the allocation of payroll costs from the estimate as indicated in the annual
PAR form to actual time spent. Thus, there is not an "after the fact" accounting based on actual
activity.
Also, we noted a salaried employee in our sample for the CDBG program whose payroll is
allocated 100% to the grant; however, semi-annual certifications were not completed as
described above.
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Schedule of Findings and Questioned Costs (continued)
Questioned Costs
Total salaries and related costs are summarized as follows:
HOME (CFDA # 14.239)
CDBG (CFDA # 14.218)
SHIP (CSFA # 52.901)
$ 94,202
$ 329,301
$ 200,486
Cause/Effect
The PARs and timesheets used do not meet the requirements of OMB Circular A-87 with respect
to the documentation supporting the allocation of salaries and related costs. The payroll charged
to a grant is based on the PAR, or budgeted amount, and there is no process in place to compare
the PAR percentage used by the payroll department to allocate costs during the year to the actual
time incurred by the employee based on the timesheets. Additionally , PAR reports do not include
the employee's signature and are completed annually; however, for employees who work solely
on one grant, certification forms are required to be completed at least semi-annually.
Recommendation
We recommend that the County continue to use the timesheet process implemented during fiscal
year 2006 whereby the employees and a supervisor sign each timesheet. In addition, the County
should implement a process to provide the timesheets to the payroll department on a periodic
basis to match the related payroll allocated to each grant (as based on the PAR), to the actual
time spent working on the federal/state grant based on the after-the-fact timesheet, and any
adjustments necessary to true-up the estimated payroll charged to the grant (based on the PAR)
to the actual amount (based on the timesheets) should be made. Alternatively, the payroll
department could charge payroll costs to the grants based on actual time sheets submitted weekly
as opposed to using the budgeted PAR percentage as the basis for allocating costs each pay
period.
PAR reports should be signed by the employee and completed at least semi-annually for those
employees who work solely on one grant.
Views oj Responsible Officials
Management agrees with the comment.
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6
Schedule of Findings and Questioned Costs (continued)
Planned Corrective Action
I) Housing and Human Services Department will work with Human Resources Payroll staff
regarding the SAP module for time tracking to develop a process that will enable us to
charge the actual time incurred by the employee (after the fact) to a grant versus projected
budgeted allocation based on the PAR.
2) Housing and Human Services staff will continue utilizing the timesheet documentation
process developed in FY 2006.
3) Management will review the timesheets quarterly and compare them against cost allocations
to make adjustments accordingly.
4) The PAR forms will be revised to accommodate employee's signature.
5) Departmental policies and procedures will be revised to reflect changes.
Finding 2007-12
Federal Program Information
u.s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Criteria
Matching: Participating jurisdictions are required to maintain records, including individual
project records and a running log, demonstrating compliance with the matching requirements,
including the type and amount of contributions by project. Matching information is provided on
the HOME Match Report (HUD-40107-A) (24 CFR sections 92.218 through 92.220, 92.222, and
92.508). Per review of the instructions on the HOME Match Report (HUD-40107-A) we noted
that "The HOME Match Report is a part of the HOME APR and must be filled out by every
participating jurisdiction that incurred a match liability. A participating jurisdiction not required
to submit this report either because it did not incur any match or because it had a full match
reduction, may submit a HOME Match Report if it wishes."
Condition/Context
The HOME Match Report was not submitted for fiscal year 2007. The County was not aware
that this report was required, and did not meet any of the exemption criteria.
In addition, the records used to track the HOME match contributions are not in accordance with
24 CFR 92.504. The tracking spreadsheet utilized by the County shows the matching
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Schedule of Findings and Questioned Costs (continued)
contributions by program but does not indicate the exact amount that was contributed. There is
no clear indication in the spreadsheet as to the date the contribution was made to the program
and we were unable to validate the amount contributed from the spreadsheet to the general ledger
as there are no index numbers or dates in the spreadsheet. In addition, the spreadsheet is not
reviewed to ensure compliance with the matching requirements. Upon drawdown of entitlements
the County is required to input the match contributed to the project to HUD's Integrated
Disbursement and Information System (IDIS), however, IDIS is unable to generate a report that
identifies the matching previously submitted.
Questioned Costs
N/A
Cause/Effect
The County is not in compliance with the reporting or recordkeeping portion of the matching
compliance requirement.
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting and recordkeeping
requirements. The County should implement a tracking system to ensure reporting requirements
are being met. The County should improve its method of tracking matching contributions to
support the amounts reported in IDIS (including source of funding: index numbers to trace
source to general ledger) and the general ledger.
Views of Responsible Officials
Management agrees with the comment.
Planned Corrective Action
1) Housing and Human Services (HHS) staff will review the HOME program guidelines to
further understand the HOME match requirements.
2) HHS staff has recently developed a tracking system to track the HOME match contributions
in compliance with 24 CFR 92.504 which is an improvement to the current tracking
mechanism,.
3) The HOME Match Report (HUD-40107-A) will be completed by September 30 of each year
and included in the Consolidated Annual Performance and Evaluation Report (CAPER).
4) Departmental policies and procedures will be revised to reflect the changes made.
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Schedule of Findings and Questioned Costs (continued)
Finding 2007-13
Federal Program Iriformation
u.s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
CFDA No. 14.239
Criteria
Reporting: Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income
Persons (OMB No. 2529-0043) requires that for each grant over $200,000 that involves housing
rehabilitation, housing construction, or other public construction, the prime recipient must submit
Form HUD 60002 (24 CFR sections I 35.3(a) and 135.90).
Condition/Context
The County did not submit Form HUD 60002 during the program year. The program received a
grant of which $200,000 went to a subrecipient, Big Cypress, to provide financial assistance with
the construction of low-income housing.
Questioned Costs
N/A
Cause/Effect
The County did not submit HUD 60002, Section 3 Summary Report, Economic Opportunities
for Low- and Very Low-Income Persons to the field office for fiscal year 2007.
Recommendation
We recommend that the County/Department of Housing and Human Services review HOME
program guidelines and provide the program managers with the reporting requirements. The
County should implement a tracking system to ensure reporting requirements are being met.
Views of Responsible Officials
Management agrees with this finding.
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Schedule of Findings and Questioned Costs (continued)
Planned Corrective Action
Housing and Human Services will review the HOME program guidelines and update our
checklist to ensure that the Section 3 reports are completed as indicated. Whenever a
subrecipient receives $200,000 or more in CDBG or HOME assistance as it relates to
construction, a Section 3 form will be included in the award package and completed. The report
will be sent to the field office by the deadline required.
Finding 2007-14
State Program Information
Florida Housing Finance Corporation (the Corporation)
State Housing Initiatives Partnership Program (SHIP)
CSFA No. 52.901
Criteria
Reporting:
· In accordance with Section 420.9075(10), Florida Statutes, each county or eligible
municipality shall submit to the Corporation by September 15 of each year a report of
its affordable housing programs and accomplishments through June 30, immediately
preceding submittal of the report.
. Annual reports for the Closeout Fiscal Year (2004/2005), Interim Fiscal Year 2
(2005/2006), and Interim Fiscal year 3 (2006/2007) (the Annual Report) must be
included in the submission to the Corporation.
· The local SHIP administrator's tracking system and annual reports must exactly match
the information recorded in the local city or county's general ledger.
. SHIP administrators, therefore, are required to regularly reconcile their tracking system
with the local finance department's general ledger. They should meet with the director
of their fmance department to create a process that will ensure compliance with the
single audit act.
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Schedule of Findings and Questioned Costs (continued)
Cash Management:
· Interest income earned on state program advances must either be returned to the
awarding agency or applied against the agency's obligation to pay the contract amount.
The SHIP guidelines provide that the application of program income and recaptured
funds from loan repayments, reimbursements or other repayments, and interest earnings
on the local housing distribution funds shall evidence compliance with the provisions of
Rule 67-37.007, FAC., Uses of and Restrictions Upon SHIP Local Housing
Distribution Funds for Local Housing Assistance Plans.
Condition/Context
The financial information included in the submitted Annual Report was not reconciled to the
County's general ledger. Accordingly, we were unable to validate the amount of expenditures
reported in the Annual Report. Additionally, we noted that there were no amounts reported for
"program income (interest)" for the 2004/2005 and 2005/2006 grant award periods, however,
interest was earned on the unspent portion of the respective advances and should have been
reflected as program revenue.
Questioned Costs
Unknown
Cause/Effect
The financial information submitted in the annual statutory reports did not agree to and was not
reconciled with the general ledger. This results in incorrect and/or inconsistent information
between the reports filed and the underlying fmancial records and indicates that the County is not
in compliance with the provisions of the SHIP Program Manual requiring that amounts reported
in the Annual Report match the amounts reported in the general ledger. Additionally, interest
income on unspent funds was not allocated, tracked, or reported by award year. Internal controls
with respect to reporting and accounting for interest income were not operating effectively.
Recommendation
The County should implement procedures that require that the statutory reports be reconciled to
the general ledger and reviewed and approved by finance department staff prior to being filed
with the State. The County should also establish a separate general ledger account or index code
for each entitlement year for interest income and ensure that interest income is appropriately
captured, reported, and expended as appropriate.
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Schedule of Findings and Questioned Costs (continued)
Views of Responsible Q/Jicials
Management agrees with this comment. As preparation for the submission of the SHIP Annual
Report, staff matches all expenditures listed on the SHIP tracking spreadsheets to the general
ledger. However, staff did not reconcile the complete general ledger as relates to SHIP.
Planned Corrective Action
The HHS staff will perform a reconciliation of SHIP transactions monthly to ensure that the
Annual SHIP report tracks to the SHIP annual report. This is a new procedure that was just
implemented. The SHIP grant support specialist will run reports at the end of each month and
reconcile those transactions to the activity in the SHIP spreadsheet. These reports are maintained
throughout the year and are expected to greatly improve staff's ability to reconcile with the
general ledger when preparing the SHIP Annual Report.
Finding 2007-15
Federal Program Information
U.S. Department of Housing and Urban Development (HOD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Criteria
Procurement, Suspension and Debarment: Non-Federal entities are prohibited from contracting
with or making subawards under covered transactions to parties that are suspended or debarred
or whose principals are suspended or debarred. All nonprocurement transactions (i.e., subawards
to subrecipients), irrespective of award amount, are considered covered transactions. When a
non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal
entity must verify that the entity is not suspended or debarred or otherwise excluded. This
verification may be accomplished by checking the Excluded Parties List System (EPLS)
maintained by the General Services Administration (GSA), collecting a certification from the
entity, or adding a clause or condition to the covered transaction with that entity.
Condition/Context
The County did not maintain documentation indicating that it had checked the EPLS for
subawards to subrecipients. Additionally, there was no certification from the entity or clause or
condition included in subrecipient agreements.
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Schedule of Findings and Questioned Costs (continued)
Questioned Costs
N/A
Cause/Effect
Internal controls with respect to suspension and debarment for subrecipients were not opemting
effectively as no documentation was maintained indicating that the EPLS was checked prior to
making subawards. Additionally, there was no evidence that the County had obtained a
certification from the entity, or added a clause or condition to the contract with the entity.
Therefore, we could not verifY whether the County met its requirement to verify that
subrecipeients were not suspended or debarred or otherwise excluded.
Recommendation
The County should perform verification of subrecipients by checking the EPLS (and
documenting evidence of the verification, when it was performed and by whom), collecting a
certification from the entity, or adding a clause or condition to the contract with that entity in
accordance with the Federal requirements.
Views of Responsible Officials
Management agrees with this finding.
Planned Corrective Action
HHS has reviewed the debarment status of every contractor and sub-contractor working on
construction projects in the EPLS system. The department will add debarment certification
criteria to the application process for each sub-recipient. No contract will be executed with a sub-
recipient until debarment review for that entity is performed. The debarment certification will be
added to our checklist for the project file.
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Schedule of Findings and Questioned Costs (continued)
Finding 2007-16
Federal Program Information
U.S. Department of Housing and Urban Development (HOD)
Community Development Block Program (CDBG)
CFDA No. 14.218
Criteria
Performance Reporting: For each grant over $200,000 that involves housing rehabilitation,
housing construction, or other public construction, the prime recipient must submit Form 60002,
Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income Persons (24
CFR sections 135.3(a), 135.90, and 570.607). The Dollar Amount of Award is considered a key
line item.
For performance reports, OMB Circular A-133 requires that reports are accurate and complete
and prepared based on the appropriate supporting data.
Financial Reporting: Grantees may include reports generated by IDIS as part of their annual
performance and evaluation report that must be submitted for the CDBG Entitlement Program 90
days after the end of a grantee's program year. Auditors are expected to test information
extracted from IDIS in the system-generated reports including the C04PR26 - CDBG Financial
Summary .
For financial reports, OMB Circular A-133 requires that amounts reported are in agreement with
the accounting records that support the audited financial statements (Le. general ledger) and the
Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA).
Condition/Context
The Form 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-
Income Persons submitted by the County on January 18, 2008 for the reporting period of July I,
2006 to June 30, 2007 specified that the total amount of award was $2,400,655. However, this
award amount relates to the 2007-2008 entitlement for the program year that began on July 1,
2007. Accordingly, it appears that the incorrect award was used to complete this report.
The expenditures reported in the C04PR26 - CDBG Financial Summary report for the period of
July 1, 2006 through June 30, 2007 based on the IDIS system had not been appropriately
reconciled to the County's general ledger.
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Schedule of Findings and Questioned Costs (continued)
Questioned Costs
Unknown
Cause/Effect
Internal controls with respect to reporting were not operating effectively. The expenditures
reported in the C04PR26 report referred to above had not been reconciled with the general
ledger and the Form 60002, Section 3 Summary Report, was not properly prepared. This results
in incorrect and/or inconsistent information between the reports filed and the underlying
financial records.
Recommendation
The County should implement procedures that require that financial reports extracted from IDIS
be reconciled to the general ledger and reviewed and approved by appropriate staff on a timely
basis. Evidence of the reconciliation and of the review should be documented and retained.
Performance reports should be thoroughly reviewed for accuracy and completeness before they
are submitted.
Views of Responsible Q/ficials
Management agrees with this finding.
Planned Corrective Action
I) Housing and Human Services (HHS) staff will review the HUD program guidelines
regarding report submission requirements.
2) HHS staff is in the process of development a reporting calendar whereas all HUD reports will
be submitted in a timely manner.
3) Report Form 60003, Section 3 Summary Report will be completed and submitted prior to the
deadline of September 30 of each year.
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Schedule of Prior Audit Findings
For the Year Ended September 30, 2007
A. The current status of a finding reported by the County's prior auditor for the year ended
September 30, 2006 related to the basic financial statements is as follows:
Finding 2006-1
Criteria or Specific Requirement
Government Accounting Standards Board Statement No. 33, Accounting and Financial
Reporting for Nonexchange Transactions (GASB 33), states that governments should recognize
assets from imposed nonexchange revenue transactions in the period when an enforceable legal
claim to the assets arises or when the resources are received, whichever occurs first. All imposed
nonexchange revenues should be recognized in lhe same period that the assets are recognized
unless the enabling legislation includes time requirements. Impact fees revenue is classified as an
imposed nonexchange legislation.
Additionally, the County never recorded certain developer donated properties which were
received in lieu of impact fees. Since the County retained ownership in the property at the time
of receiving these properties, the County should have recorded the capital contributions when
donated.
Condition
The County had historically recorded impact fee revenues as unearned revenue until the County
had met all the restrictions in the enabling legislation related to the fee. Also, the County has not
recorded developer donated properties received in lieu of impact fees in previous years.
Current Status
Corrective action was taken.
Currently, impact fee credit ledgers are supplied by the Community Development and
Environmental Services Department at the end of the fiscal year. These ledgers map to
Developer Contribution Agreements and list value received, or to be received, in return for
impact fee credits, as well as outstanding impact fee credit balances by Developer Contribution
Agreement (DCA). Rights of way, easements and land are recorded as provided for in the DCA
and construction improvements are recorded as accounts receivable until completion. Capital
assets related to impact fee credit balances are current and booked through September 30, 2007.
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Schedule of Prior Audit Findings (continued)
B. The current status of findings reported by the County's prior auditor for the years ended
September 30, 2006 and 2005 related to major federal programs and state projects is as
follows:
Finding 2006-2
Federal Agency:
Program:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
Home Investment Partnerships Program (HOME)
#14.218,14.239
M-05-UC-120217, B-04-UC-120016, B-05-UC-120016
2004,2005
CFDA Number:
Award Numbers:
Award Years:
Recommendation
The County has now completed an Environmental Review Record for each of the projects
mentioned in this fmding. Environmental reviews should be completed for each project prior to
IDIS set-up and prior to expending any grant funds. To ensure completion of environmental
assessments, we recommend implementation of oversight controls. After each ERR is completed,
it should (1) be signed and dated by the appropriate staff member and (2) be reviewed and
approved by management. The approved ERR should then be forwarded to the person
responsible for IDIS set-up (to initiate this process) and subsequently placed in the appropriate
file. We recommend the County update its policies and procedures to document all controls and
processes associated with environmental reviews.
Management's Response
Collier County concurs with this finding and as indicated in the recornmendation above has
already implemented additional environmental practices and procedures. Consequently, our
positive completion of all environmental reviews and implementation of additional practices and
procedures has validated all HOD eligible activities and any and all questioned costs associated
with these and future projects.
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Schedule of Prior Audit Findings (continued)
Current Year Status
Collier County Housing and Human Services Department has updated the Environmental
Review policies and procedures already in place to reflect the process in a more comprehensive
and detailed manner when completing the Environmental Reviews (ERR). To ensure compliance
with HOD regulations, Collier County will require the appropriate staff members to attend HOD
sponsored Environmental training. This will be accomplished in the first three months of 2008.
Another level of control added to the Environmental Review process is the review of each of the
ERRs by the Grants Operations Coordinator (GOC) after the Grants Management Coordinators
complete ERR documents for their projects/activities to determine the appropriate level of
clearance. The GOC will check the ERRs to make sure the projects/activities have correctly been
categorized as to the level of environmental review required, therefore assuring that the
established procedures have been followed and all HOD required forms are included in the ERR.
Finding 2006-3
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
u.s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend formal policies and procedures with respect to Community Housing
Development Organization (CHDO) certifications. The policies should address initial CHDO
certification as well as CHDO re-certifications, and require completion of an armual checklist.
For initial certifications, the County should have documentation to support each item on this
checklist. Documentation required for re-certifications should also be described. To ensure
proper controls are in place, we recommend coordination of CHDO documentation by one
individual and review and approval by another.
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Schedule of Prior Audit Findings (continued)
Management's Response
Collier County Housinll: Development Cor,poration (CCHDC)
Low Income Community Input: The by-laws of CCHDC include a statement of compliance that
CCHDC would create a "process for low income community input." CCHDC did adopt by
Board motion a formal written process for low income community input. CCHDC's actions since
its inception have reinforced this policy. CCHDC has now adopted an official corporate
resolution on January 11, 2007 validating that their official policy of low income community
input has been in existence since creation of the organization. Low income Board representation:
As part of the County's CHDO Certification checklist process, low-income board participation is
verified by staff. CCHDC has always and continues to maintain their required minimum number
of low income board members. CHDO Certification Date: The certification process for CCHDC
occurred over approximately a 9 month period. On December 8, 2005 county staff attended the
Board meeting where the CCHDC adopted the two remaining policy items, thus completing all
of the HOD checklist requirements for their CHDO certification status.
Empowerment Alliance of Southwest Florida CEASF)
CHDO Low-income community input and CHDO Capacity: EASF has been a State of Florida
certified CHDO since 2002. The State guidelines for CHDO certification are identical to HUD
guidelines. Documentation of State CHDO approval is on file with Collier County. EASF has
been operating in Collier County since 2000 which substantiates their capacity and experience
working in the low-income cornmunity of Immokalee.
Bill: Cvpress Housinll: Como ration
CDHO Capacity and Staffing: Big Cypress CHDO operates as a subsidiary of Everglades
Community Association. The staff of the organization is allocated to the parent organization
supporting the CHDO and charges their time accordingly. Everglades Community Association
operates 3 certified CHDOs throughout Florida in Collier, Manatee, and Miami-Dade counties
utilizing the same staffing relationships. Everglades Community Association and its subsidiaries
have developed over 1,000 units throughout Florida. It is common practice for nonprofits to
create new corporate entities for each new housing development. As a result, staff remains on the
parent corporation's payroll for administrative expediency. Big Cypress retains the staff talent by
absorbing the appropriate cost of their share of the parent corporation's payroll cost.
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Schedule of Prior Audit Findings (continued)
Chapter 8 of Building HOME (page 8-11) specifically provides for alternative staffing plans that
would allow this staffing arrangement to satisfy the requirement for staff capacity and
experience. Big Cypress Housing Corporation developed and owns the 79-unit Main Street
Village in Immokalee. In addition, Steve Kirk, President and Executive Director received a
national award from the Housing Assistance Council in Washington, D.C. in December 2006 for
his efforts to develop housing for migrant farm workers. In essence, it is our opinion, that this
CHDO meets the HOME requirements in substance over form.
General
Collier County is confident that all three organizations have been appropriately certified as
Community Housing Development Organizations (CHDOs) and that all expenditures are in
compliance with HUD HOME regulations. The HUD CHDO Certification checklist will
continue to be used annually for recertifying all organizations seeking CHDO status in Collier
County .
Current Year Status
The HUD CHDO Certification checklist is used annually to recertify all organizations seeking
CHDO status in Collier County. It is the responsibility of one Grant Coordinator to certify the
CHDO status which is then confirmed by a member of the HHS management team. All
paperwork is contained within the files of the organizations seeking CHDO status.
CCHDC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on CCHDC's By-laws, corporate resolution and board list.
EASF: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on EASF's by-laws, board resolution, and board list.
BCHC: As part of the recertification process, Collier County Housing and Human Services
requires CHDO's to complete an HUD CHDO Certification annual checklist. Low-income board
participation is noted on Big Cypress' by-laws, board resolution and board list.
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Schedule of Prior Audit Findings (continued)
Finding 2006-4
Federal Agency:
Program:
CFDA Number:
Award Numbers:
Award Years:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
We recommend thorough research and review of CHDO requirements prior to entering into a
contractual agreement. Additional review and approval procedures should be developed with
respect to CHDO expenditures to ensure that all conditions are met prior to the release of any
CHDO funds. We recommend formal documentation of all CHDO requirements and controls.
Management's Response
Collier County reviewed HUD HOME rules and made the determination that the Collier County
Housing Development Corporation (CCHDC) was acting as a developer in the case of the Cirrus
Pointe project. The joint venture agreement between CCHDC and Jim Fields states that both
parties are responsible for the development of the project. This contractual agreement details the
property owner and the CHDO's specific obligations to bring this project from conception to
completion. "The parties desire to form a joint venture for the development and sale of the parcel
according to this agreement. The parties hereby create a Joint Venture for the construction and
sale of 108 residential condominium units on the. parcel." In addition, the CHDO will be
involved in efforts to secure additional financing for this project and the prequalification and sale
of the affordable units. HOD encourages CHDO's to develop partnerships in order to more
successfully develop, construct, fmance and sell affordable housing. According to HUD
regulations a CHDO is defined as a "Developer" when it "has a contractual obligation to a
property owner to develop a project." In addition, "In the Developer role, the CHDO carries out
some or all of the principal project development activities." (Building HOME pgs 8-12 and 8-
15). On January 16, 2007, staff requested clarification from the Miami HUD office on this
matter.
Corrective Action: Attend training on CCHDO's sponsored by the National Association for
County, Community and Economic Development in June, 2007 and update the certification
checklist and policies and procedures to reflect the training within 30 days.
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Collier County, Florida
Schedule of Prior Audit Findings (continued)
. Current Year Status
Because of the transition of staff members in Housing and Human Services, attendance at the
CHDO training in June was not possible. Training has been scheduled for February of 2008. In a
conference call with the Miami Field Office, it was determined that HUD would not render an
opinion based on the audit. For future CHDO contractual agreements, technical assistance will
be requested to clarify CHDO requirements and all proposed CHDO expenditures will be
reviewed to ensure that all conditions are met prior to the release of funds.
Finding 2006-5
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
We recommend the County review any future joint venture agreements that are associated with
CHDO set-aside funds and ensure that the requirements described above are met prior to the
expenditure of HOME funds.
Management's Response
Collier County will continue to review all joint venture (JV) agreements as an integral part of its
evaluation of HOME CHDO projects and their compliance with HUD regulations.
Current Year Status
Staff attended Joint Venture training on April 19, 2007. The staff members then provided in
house training for the rest of the Grants staff on July 16, 2007. Legal documents continue to be
reviewed by the County Attorney. The contract with the Cirrus Pointe was extended by the
Board of County Commissioners for the work to be completed by 12/09. The developer is in the
process of applying for building permits. Housing and Human Services grants staff is providing
technical assistance to the developer to ensure a successful completion of this project.
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168~6
Schedule of Prior Audit Findings (continued)
Finding 2006-6
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
u.s. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
We recommend the County develop and utilize a checklist describing all documentation
requirements for real property acquisitions. Management level personnel should review and
formally approve all significant steps (as described on the checklist) in the property acquisition
process. We also recommend sending any future Uniform Relocation Act (ORA) letters via
"certified" mail to document compliance with the above-noted requirements.
Management's Response
With regards to this land acquisition activity, the seller was delinquently notified of all URA
requirements by the co-developer of the project, Beneficial Communities. Collier County has
implemented a project checklist requiring management approval certifying URA requirements
have been met by sub-recipients prior to disbursement of funds.
Current Year Status
Staff attended URA training in April 2007. Policies and procedures were updated to reflect the
training in July, 2007. Subrecipients will receive training and technical assistance on policies and
procedures regarding the Uniform Relocation Act. Appropriate paperwork will be on file,
including documentation of URA letters sent by certified mail.
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160'6
Schedule of Prior Audit Findings (continued)
Finding 2006-7
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217
2003,2004
Recommendation
As noted in this finding, the County has already corrected this error. This was the fust year the
County utilized HOME funds for a tenant-based rental assistance (TBRA) program. In the future,
we recommend careful review of all HOME regulations and guidance when starting
programs/projects that are new to the County.
Management's Response
Collier County has corrected this situation.
Current Year Status
Collier County Housing and Human Services will carefully review all procedures and regulations
before starting new programs. Staff members will attend the requisite training as it is offered and
request technical assistance from the Miami Field Office. The department will scrutinize
administrative costs and ensure these costs are expended from the appropriate categories.
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Collier County, Florida
168116
Schedule of Prior Audit Findings (continued)
Finding 2006-8
Federal Agency:
Program:
CFDA Number:
A ward Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-120217
2003,2004,2005
Recommendation
We recommend the County develop detailed policies and procedures with respect to HOME
match and provide training for all personnel involved in the HOME match process. As part of
this process, the County needs to develop procedures to separately identify SHIP "match" loans
and ensure repayment of these loans is deposited into the HOME Investment Trust Fund local
account. The County should revise and re-file its 2006 match report with HUD, based upon the
new procedures.
Management's Response
No HOME activities using SHIP match have been re-paid to Collier County. The situation
described in the recommendation has not occurred. Collier County will develop a detailed policy
and procedure to handle the re-payment of matched funds should the situation ever arise.
Current Year Status
The County uses SHIP funds as match contribution to the HOME funds. HOME recipients that
receive SHIP match will be identified and setup in IDIS. A written procedure to address this
issue has been completed.
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16B 6
Schedule of Prior Audit Findings (continued)
Finding 2006-9
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
#14.218
B-04-UC-120016, B-05-UC-120016
2004,2005
Recommendation
We recornmend Collier County Human Services provide payroll and/or other documentation to
support the cost of providing intake services. Any costs that cannot be supported by underlying
documentation should be returned to the CDBG program.
We recommend the County adhere to the payment and documentation standards established in its
contractual agreements. If changes are considered necessary, the County and its subrecipient
should amend the appropriate sections of the agreement.
The County should carefully consider all documentation and monitoring requirements prior to
entering into subrecipient agreements for medical-related services and other "Public Services"
(as defmed by the CDBG program). Such contracts often require significant oversight from both
a progranunatic and financial management (documentation review) perspective.
Management's Response
All reimbursements made for these projects were made in accordance with the executed
contracts. Management continues to ensure that programmatic and fiscal controls are in place for
all public service projects and other CDBG eligible activities.
Current Year Status
This project was closed out on October 19, 2007. During the monitoring, it was observed that
each file contained sufficient documentation to support the cost of providing intake services.
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Collier County, Florida
168
6
Schedule of Prior Audit Findings (continued)
Finding 2006-10
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-05-UC-120217
2005
Recommendation
The County utilized this program income prior to year-end and developed a process to
incorporate program income into its cash draw process. We recommend the County update its
written policies and procedures for cash draws to reflect the requirements associated with
program income.
Management's Response
Collier County concurs with this finding. Staff has developed policies and procedures to address
this situation as described by the auditor in the context/effect section above.
Current Year Status
The County received Home program income for the first time in FY 2006. The income was
spent, but not drawn in IOIS. Procedures are in place to ensure all future program income are
spent and drawn in IDIS before entitlement funds are used.
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Collier County, Florida
16 B"~6
Schedule of Prior Audit Findings (continued)
Finding 2006-11
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217
2003
Recommendation
Using reasonable allocation methods, we recommend the County determine and document the
wnount/cost ofland associated with the 4 single-family units and the amount associated with the
51 apartment units. The County should then either:
(1) require Big Cypress to return the portion of HOME funds associated with the 51-unit
apartment complex; or
(2) amend its contractual agreement with Big Cypress to include the 51 units of rental
housing and impose the applicable "period of affordability" requirements for the
HOME program.
We also recommend the County clearly describe the intended use of HOME funds in its
contractual agreements. The County should not approve and fund HOME expenditures that are
not detailed in the contract "scope of work".
Management's Response
Collier County has amended this contractual agreement effective March 2, 2007 to include the
51 units of rental housing and the applicable period of affordability.
Current Year Status
This contract was amended in March 2007 to include all 55 units. All legal contracts, including
the scope of work, are reviewed by the County Attorney. The scope of work for each project
clearly reflects the intended use of all grant funding.
0806-0954714
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Finding 2006-12
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
Collier County, Florida
168 ~6
Schedule of Prior Audit Findings (continued)
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) and
Home Investment Partnerships Program (HOME)
#14.218 and #14.239
M-05-UC-1202l7, B-05-UC-120016
2005
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006.
Management's Response
Collier County will continue utilizing the timesheet documentation process developed in FY
2006.
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members. Any new employees hired are also trained on the timesheet
documentation process. See current year fmding 2007-11.
Finding 2006-13
Federal Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
M-03-UC-120217, M-04-UC-120217, M-05-UC-120217
2003,2004,2005
We recommend the County carefully review the language of all HOME contracts to ensure
compliance with 24 CFR 92.504. Written agreements should specifically address each provision
as described in this HOME regulation.
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16 B.6
Schedule of Prior Audit Findings (continued)
Management's Response
Collier County will review all contractual agreements to ensure they comply with all
requirements of 24 CFR including 92.504. Regarding the Big Cypress deed restrictions
referenced above, the developer requested an additional change to reflect a revised legal
description. This agreement has been reviewed by the County attorney's office and will be on the
agenda for approval by the Board of County Commissions in July 2007. All agreements are
reviewed by the County attorney's office. Management will pursue review by HUD source for
compliance with HUD legal sufficiency.
Current Year Status
The contract in question has been amended and approved by the Board of County
Commissioners. Additionally, the contracts from Housing and Human Services have undergone
a rigorous review process by the County Attorney, Purchasing and staff members with the Clerk
of Courts. These revised contracts will be submitted to HUD for review of legal sufficiency to
ensure that written agreements specifically address each provision described in the program
regulations.
Finding 2006-14
Federal Agency:
Program:
CFDA Number:
Award Number:
A ward Year:
U.S. Department of Transportation
Highway Planning and Construction
#20.205
195431
October 1, 2005 - September 30, 2006
Recommendation
KPMG recommends that the County implement procedures to ensure that Davis-Beacon Act
requirements are included in contracts and that certified payrolls are obtained from contractors
and subcontractors when required.
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Collier County, Florida
16 B '~6
Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this finding; however, proper steps to assure this problem does not
occur in the future have already been taken. This finding pertains to a construction contract that
was let in 2004. At the time the contract was let, the Purchasing Department was not aware that
this project was to be grant funded and hence did not insert the requirements raised under the
finding. The issue of grant compliance in certain County contracts was brought to our attention
in a subsequent annual audit finding. Purchasing staff formally addressed this issue in March
2006 by modifying the pre-bidding checklist. The modified list includes a determination of the
funding source. If grant funds are part of the revenue for the project, the Purchasing staff inserts
the appropriate additional conditions to the bid and contract terms.
Current Year Status
A new Grants Coordinator with prior grant compliance experience was hired in June of 2007. All
newly executed LAP-funded and FTA-funded contracts continue to include the Davis-Bacon Act
requirements and are reviewed for updates. Currently, there are no nonlocal LAP projects in the
construction phase that would require the collection of certified payrolls. A written procedure has
been developed for future contracts which require certified payroll collection. This procedure
will include informing contractors at pre-bid meetings and post-award meetings that Davis
Bacon applies, and certified payroll records are a requirement of the project. Internal procedures
include informing project managers and budget analysts of Davis Bacon requirements as well as
identifying which projects require payroll certification compliance. The Grants Coordinator will
monitor collection of the reports and be the official holder of record.
Finding 2006-15
Federal Agency:
Program:
CFDA Number:
Award Number;
Award Year:
U.S. Department of Agriculture
Watershed Protection and Flood Prevention
#10.904
69-4209-6-1617
October 1,2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that special provisions are included in
contracts when required by grant agreements.
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212
168 6
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Management's Response
Management concurs with this fmding; however, the contract was placed by the Purchasing
Department prior to the event that became the basis for the grant. The work was ordered by the
Stormwater Management Department pursuant to the clean up and removal of debris from
County drainage canals following Hurricane Wilma. The contract was placed by the Purchasing
Department several months prior to the event. The contract is available for use by any County
department and is not linked to a particular funding source or end user.
Current Year Status
A new Grants Coordinator with prior grant compliance was hired in June of 2007 and will
monitor all grants within the Transportation Division to ensure projects using grant funded
sources are properly procured following the requirements specific of the grantor.
Finding 2006-16
State Agency:
Program:
CFDA Number:
Award Number:
Award Year:
Florida Department of State
State Aid to Libraries
#45.030
06-ST-12
October 1, 2005 - September 30, 2006
Recommendation
The County should implement procedures to ensure that reports are completed properly and that
adequate supporting documentation is maintained.
Management's Response
Management concurs with this fmding. This reporting issue is related to staff turnover and
implementation of a new library automation system. Management will ensure that when staff
members are hired, they are trained to run the appropriate reports and cross trained with other
staff members. This will provide additional staff that can run and reproduce the reports when
needed and to show from where the information was derived. Prior to submittal, all reports will
be reviewed by cross trained staff and the director to verify the accuracy and completeness of
information provided. The Library will retain supporting documentation to be made available
after reports are submitted.
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Collier County, Florida
168 '6
Schedule of Prior Audit Findings (continued)
Current Year Status
Director is compiling and reviewing all reports, with assistance from current employees. We are
scheduling an additional training session with automation vendor, at a time when most library
staff needing this training will be available. Records and paper trail of information used as basis
for reports are being archived locally. Two additional staff members have been designated to
report on and keep track of particular data elements that are used to compile reports.
Finding 2006-17
State Agency:
Florida Department of Elder Affairs/Area Agency on Aging for
Southwest Florida, Inc.
Community Care for the Elderly
#65.010
CCE 304.203.06, CCE 302.203.05
July 1, 2005 - June 30, 2006 and July I, 2006 - June 30, 2007
Program:
CFDA Number:
Award Number:
Award Year:
Recommendation
The County should ensure authorization by someone other than the preparer is obtained in order
to properly segregate the duties of requesting and approving state reimbursement requests.
Management's Response
Management concurs with the finding and has implemented practices and procedures to resolve
this issue. The required reporting duties of preparer and approver have now been delegated to
separate individuals. Fiscal support staff has been trained to prepare the expenditure and request
for funds reports and have now accepted this responsibility. The reports will in turn be reviewed
for completeness and accuracy by the accounting supervisor, who will then sign off as the
approver.
Current Year Status
The accounting staff implemented the practices and procedures as outlined in the Management's
Response. Fiscal staff has been trained to prepare the reports and now completes them with great
accuracy. The supervisor continues to sign off on the reports for completeness, timeliness and
accuracy.
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Finding 2006-18
State Agency:
Program:
CFDA Number:
Award Year:
Recommendation
Collier County, Florida
169
6
Schedule of Prior Audit Findings (continued)
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2003/04, 2004/05
Reconciliations of both revenue and expense (between the SHIP Annual Report and the general
ledger) should be formally documented, reviewed, and approved. Policies and procedures should
be written to describe the entire reporting process, including reconciliation controls, the manner
in which data is compiled and the documentation to be maintained.
Management's Response
As indicated in the fmding the reconciliation of the SHIP report and General Ledger has been
completed and are correct. The SHIP Annual Report submitted to the State was correct. A policy
and procedure has been implemented requiring reconciliations to be completed for the SHIP
program on a monthly basis.
Current Year Status
Staff is working towards a monthly reconciliation of the SHIP program on a monthly basis. See
current year fmding 2007-14.
Finding 2006-19
State Agency:
Program:
CFDA Number:
Award Year:
Recommendation
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2004/05
The County budgeted for increased SHIP activity in FY 2007 and believes that they will meet the
encumbrance and expenditure requirements as of June 30, 2007. The County periodically
reviews the expenditure and encumbrance levels of the SHIP program. We recommend written
policies that address this process and formal documentation of this control on a quarterly (or
more frequently) basis.
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Collier County, Florida
168
6
Schedule of Prior Audit Findings (continued)
Management's Response
Collier County agrees with this finding, however all 2004/2005 SHIP funds were not only
encumbered but also expended by December 31, 2006, six months prior to their statutory
expenditure deadline. Collier County has amended its LHAP to allow greater flexibility to
encumber and expend all SHIP funds consistent with statutory requirements. The State of Florida
was notified of the situation prior to July 2006 and agreed to the County's plan to encumber and
expend the SHIP funds in the fall of 2006.
Current Year Status
Due to market conditions, the 2004/2005 funds could not be encumbered in a timely manner.
The State of Florida was notified of the situation and an extension was given. The SHIP
coordinator keeps a log on encumbered and spent activities.
Finding 2006-20
State Agency:
Program:
CFDA Number:
Award Year:
Florida Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
#52.901
2003/04, 2004/05, 2005/06
Recommendation
We recommend the County continue utilizing the timesheet documentation process it developed
in FY 2006.
Management's Response
Collier County will continue utilizing the timesheet documentation process developed in FY
2006.
Current Year Status
Collier County Housing and Human Services continues to utilize the timesheet documentation
process for all grants staff members. Any new employees hired are also trained on the timesheet
documentation process. See current year fmding 2007-11.
0806-09547]4
216
168 6
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2005-1
Federal Agency:
Program:
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG)
Home Investment Partnerships Program (HOME)
#14.218,14.239
CFDA Number:
Recommendation
The Housing Department should consider the use of weekly timesheets (instead of a time study)
to support allocations of payroll costs, since the tasks performed by each employee and the
grants they work on vary from week to week. If time studies continue to be used, the Department
should further refme and document this process. Employees that work exclusively on one grant
can sign a semi-annual statement to this effect. They would not be required to complete
timesheets or time studies. All processes relating to costs allocation should be documented in the
Policies and Procedures manual.
Management's Response
All employees of the Housing and Grants section will complete daily time sheets which will be
reviewed quarterly and evaluated against cost allocations which will be adjusted as warranted.
Housing and Grants will contact Human Resources regarding the SAP module for time tracking.
The final time tracking format will be documented in the Policies & Procedures manual.
Current Year Status
Housing and Human Services staff continue to utilize the time sheet documentation process
developed in FY 2006. See current year finding 2007-11.
0806..0954714
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168 6
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2005-2
Federal Agency:
Program:
CFDA Number:
U.S. Department of Housing and Urban Development
Home Investment Partnerships Program (HOME)
#14.239
Recommendation
We recommend the County draw HOME funds only after closings. If funds are drawn but not
utilized as anticipated, the County should revise the draw request in the IDIS system within the
15-day timeframe.
Management's Response
Effective immediately, the County will only draw down funds through HOD's Integrated
Disbursement Information System (ImS) after a settlement statement or other closing documents
have been received in Operational Support and Housing. This will be further documented in the
Policies and Procedures Manual.
Current Year Status
Following the implementation of procedure 2-110 ImS Dmw Down, the Housing and Human
Services staff consistently adheres to the policy. A settlement statement / closing document is
required documentation when submitting a payment request. The fiscal staff responsible for
reviewing all payment requests will ensure this document is included and will approve the
payment request. Draw down will be performed after verification that the check was issued and
the expenditure has been posted to the general ledger.
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Collier County, Florida
16B 6
Schedule of Prior Audit Findings (continued)
Finding 2005-3
Federal Agency:
Program:
U.S. Department of Transportation
Airport Improvement Program, Marco, Irnmokalee and Everglades
Taxiway
#20-106
CFDA Number:
Recommendation
Prior to remitting any payment to contactors, the payroll certification should be reviewed to
ensure compliance with prevailing rates as defmed by the Department of Labor. In addition,
documentation should exist that a formal approval or review has been completed that all wages
paid are in compliance with the Davis-Bacon Act.
Management's Response
In order to rectify this deficiency Airport Authority personnel will review payroll submittals and
provide documentation to assure compliance with the Davis-Bacon Act. In addition our
procedure manual will be updated.
Current Year Status
As a result of the 2005 audit comments the Authority has updated its procedures as they apply to
the Davis-Bacon Act and we are now noting compliance on all payrolls.
0806-0954714
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l68 6
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Finding 2005-4
Federal Agency:
Program:
CSF A Number:
Florida Housing Finance Commission
State Housing Initiatives Partnership (SHIP) Program
#52.901
Recommendation
We recommend the County amend its SHIP Annual Report to correct the following reporting
errors:
. The County has a process in place to reconcile expenditures per the SHIP Annual
Report to expenditures in the general ledger. We noted, however, several differences
that had not been identified by the Housing Department and that require reclassification
entries in the general ledger .
. Revenue per the SHIP Annual Report was supported by detail schedules, but was not
reconciled to the general ledger .
. Expenditures associated with some rehabilitation cases were reported in multiple SHIP
years, thus inflating the number of household assists.
. Administrative costs exceeded SHIP limits in the 2003-2004 SHIP year and were less
than the allowable amount in the 2002-2003 SHIP year.
. We noted 2 expenditures (one in the 2002-2003 SHIP year and one in the 2003-2004
SHIP year) that did not meet the SHIP definition of an expenditure.
The Housing Department has improved its controls and documentation related to SHIP reporting
in FY 2005, however this process needs to be further refmed. Reconciliations of both revenue
and expense (Between the SHIP Annual Report and the General Ledger) should be formally
documented, reviewed and approved. Policies and procedures should be written to describe the
entire reporting process, including reconciliation controls, the manner in which data is compiled
and the documentation to be maintained.
0806-0954714
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16B "6
Collier County, Florida
Schedule of Prior Audit Findings (continued)
Current Year Status
Staff reviewed the concerns raised by the auditor relative to reconciling SHIP expenditures to the
General Ledger. A revised SHIP Annual Report was submitted to the Florida Housing Finance
Corporation on April 7, 2006. The revised report is available for review.
See current year fmding 2007-14.
Finding 2005-5
Federal Agency:
Program:
CSF A Number:
Florida Housing Finance Commission
State Housing Initiatives Partnership (SHIP) Program
#52.901
Recommendation
The Housing Department should consider the use of weekly timesheets (instead of a time study)
to support allocations of payroll costs, since the tasks performed by each employee and the
grants they work on vary from week to week. If time studies continue to be used, the Department
should further refine and document this process. They would not be required to complete
time sheets or time studies. All processes relating to cost allocation should be documented in the
Policies and Procedures Manual.
Management's Response
All employees of the Housing and Grants section will complete daily time sheets which will be
reviewed quarterly and evaluated against cost allocations which will be adjusted as warranted.
Housing and Grants will contact Human Resources regarding the SAP module for time tracking.
The final time tracking format will be documented in the Policies & Procedures manual.
Current Year Status
All staff is preparing daily, color-coded time sheets using the Microsoft Outlook Calendar. See
current year finding 2007-11.
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168 6
768 6
EXHIBIT F
Federal Certifications and Assurances
168 6
APPENDIX A FEDERAL FISCAL YEAR 2009 CERTIFICATIONS AND ASSURANCES
FOR FEDERAL TRANSIT ADMINISTRATION ASSISTANCE PROGRAMS
(Signature page alternative to providing Certifications and Assurances in TEAM-Web)
Name of Applicant:
Collier Countv Board of Countv Commissioners
The Applicant agrees to comply with applicable provisions of Categories 01 - 24.
OR
The Applicant agrees to comply with applicable provisions of the Categories it has selected:
Catel!orv
01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Description
Assurances Required For Each Applicant.
Lobbying.
Procurement Compliance.
Protections for Private Providers of Public Transportation.
Public Hearing.
Acquisition of Rolling Stock for Use in Revenue Service.
Acquisition of Capital Assets by Lease.
Bus Testing.
Charter Service Agreement.
School Transportation Agreement.
Demand Responsive Service.
Alcohol Misuse and Prohibited Drug Use.
Interest and Other Financing Costs.
Intelligent Transportation Systems.
Urbanized Area Formula Program.
Clean Fuels Grant Program.
Elderly Individuals and Individuals with Disabilities
Formula Program and Pilot Program.
Nonurbanized Area Formula Program for States.
Job Access and Reverse Commute Program.
New Freedom Program.
Paul S. Sarbanes Transit in Parks Program.
Tribal Transit Program.
Infrastructure Finance Projects.
Deposits of Federal Financial Assistance to a State
Infrastructure Banks.
169 6
APPENDIX A FEDERAL FISCAL YEAR 2009 FTA CERTIFICATIONS AND ASSURANCES
SIGNATURE PAGE
(Required of all Applicantsfor FTA assistance and all FTA Grantees with an active capital or formula project)
AFFIRMATION OF APPLICANT
Name of Applicant:
Collier County Board of County Commissioners
Name and Relationship of Authorized Representative: Tom Henning. Chairman
BY SIGNING BELOW. on behalf of the Applicant, I declare that the Applicant has duly authorized me to make
these certifications and assurances and bind the Applicant's compliance. Thus, the Applicant agrees to comply with
all Federal statutes and regulations, and follow applicable Federal directives, and comply with the certifications and
assurances as indicated on the foregoing page applicable to each application it makes to the Federal Transit
Administration (FTA) in Federal Fiscal Year 2009.
FT A intends that the certifications and assurances the Applicant selects on the other side of this document, as
representative of the certifications and assurances in this document, should apply, as provided, to each project for
which the Applicant seeks now, or may later, seek FT A assistance during Federal Fiscal Year 2009.
The Applicant affirms the truthfulness and accuracy of the certifications and assurances it has made in the
statements submitted herein with this document and any other submission made to FT A, and acknowledges that the
Program Fraud Civil Remedies Act of 1986,31 U.S.c. 3801 et seq., and implementing U.S. DOT regulations,
"Program Fraud Civil Remedies," 49 CFR part 31 apply to any cenification, assurance or submission made to FT A.
The criminal provisions of 18 U.S.c. 100 I apply to any certification, assurance, or submission made in connection
with a Federal public transponation program authorized in 49 U.S.c. chapter 53 or any other statute
In signing this document, I declare un er penalties of perjury that the foregoing cenitications and assurances, and
any other statement ade by me 0 half ofth~ Applicant are true and correct.
Date: I:L -(Co- u j
," .. ('1'.
Signatur
Name Tom Henning. Chairman
.\
,
. .
For (Name of Applicant):
Collier Countv Board of County Commissioners _
As the undersigned Attorney for the above named Applicant, I hereby affirm to the Applicant that it has authority
under State, local, or tribal government law, as applicable, to make and comply with the cenifications and
assurances as indicated on the foregoing pages. I further affirm that, in my opinion, the certifications and assurances
have been legally made and constitute legal and binding obligations on the Applicant.
I further affirm to the Applicant that, to the best of my knowledge, there is no legislation or litigation pending or
imminent that might a~ly affect the va' ityof ese cenifications and assurances, or of the performance of the
project. ,
R.
Date: -.lI }.) ~ ) I) !{
Signature
Name
'5 cott-
Attorney for Applicant
Each Applicant for FT A financial assistance and each FT A Grantee with an active capital or formula project must provide an Affirmation of
Applicant's Attorney pertaining to the Applicant's legal capacity. The Applicant may enter ils signature in lieu oflhe Attorney's signature,
provided the Applicant has on tile this Aftirmation, signed by the attorney and dated this Federal fiscal year.
l68 6
APPLIES TO APPLICANTS FOR CAPITAL ASSISTANCE
EXHIBIT H
APPLICANT CERTIFICATION AND ASSURANCE TO FOOT
To be completed and signed by an individual authorized by the governing board
of the applicant agency and submitted with the grant application.
The (undersigned) certifies and assures to the Florida
Department of Transportation in regard to its Application under U.S.C. Section 5311 dated
1) It shall adhere to all Certifications and Assurances made to the federal govemment in its
Application.
2) It shall comply with Section 341.051 Florida Statutes and Chapter 14-73 Florida Administrative
Code.
3) It has the fiscal and managerial capability and legal authority to file the application.
4) Local matching funds will be available to purchase vehicles/equipment at the time an order is
placed.
5) It will carry adequate insurance to maintain, repair, or replace project vehicles/equipment in the
event of loss or damage due to an accident or casualty.
6) It will maintain project vehicles/equipment in good working order for the useful life of the
vehicles/equipment.
7) It will retum project vehicles/equipment to the Department if, for any reason, they are no longer
needed or used for the purpose intended.
8) It recognizes the Departmenrs authority to remove vehicles/equipment from its premises, at no
cost to the Department, if the Department determines the vehicles/equipment are not used for the
purpose intended, improperly maintained, uninsured, or operated unsafely.
9) It will not enter into any lease of project vehicles/equipment or contract for transportation services
with any third party without prior approval of the Department.
10) It will notify the Department within 24 hours of any accident or casualty involving project
vehicles/equipment, and submit related reports as required by the Department.
11) It will submit an annual financial audit report to the Department. if required by the Department.
Date:
\}-\\.-06
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY,_FLORIDA
Tom
ATTB8'1' ,.\1" 'I .
DWl9BT"~_,
,," .:'."J, "'"
'zed representative)
BY:
Attest II to
Ilgnatun 011".
,.f <,
An ~~7(7~~:J
DepUty ('0 lint , All","".,
168 6
EXHIBIT I
FTA Section 5333 (b) Assurance
168 6
APPLIES TO ALL APPLICANTS
EXHIBIT I
FTA Section 5333 (b) Assurance
(Note: By signing the following assurance, the recipient of Section 5311 and/or 5311(f)
assistance assures it will comply with the labor protection provisions of 49 U.S.C.
5333(b) by one of the following actions: (1) signing the Special Warranty for the Non-
urbanized Area Program; (2) agreeing to alternative comparable arrangements approved
by the Department of Labor (DOL); or (3) obtaining a waiver from the DOL.)
The Collier County Board of County Commissioners (hereinafter referred to as the
"Recipient") HEREBY ASSURES that the "Special Section 5333 (b) Warranty for Application to
the Small Urban and Rural Program" has been reviewed and certifies to the Florida Department
of Transportation that it will comply with its provisions and all its provisions will be incorporated
into any contract between the recipient and any sub-recipient which will expend funds received
as a result of an application to the Florida Department of Transportatio under the FTA Section
5311 Program. f
Dated I::l,- \ ~-06 --.:J ~
-, " ~
Tom Henning. Chairman
ATTEST '. "...
DWI~'t'S.. B~, C ERK
r/~
BY:"
Note: Alrapplican 5 . ost cbmp ete the following form and submit it with the above Assurance.
(Signature of Authorized Representative)
,
. , J
. ,."J
LISTING OF ijecl!'jiNTS, OTHER ELIGIBLE SURFACE TRANSPORTATION PROVIDERS, AND
LABOR ORGANIZATIONS REPRESENTING EMPLOYEES OF SUCH PROVIDERS, IF ANY
(See Appendix for Example)
2
1 Site Project by Name, 3 4
Identify Recipients of Description, and Identify Other Eligible Identify Unions (and
Transportation Provider (e.g. Recipien~ Surface Transportation Providers) Representing
Assistance Under this other Agency, or Providers (Type of Employees of Providers
Grant. Contracto,i Service')' in Columns 1, 2, and 3
Collier County Board Application for Section Collier Area Transit Transport Workers
I of County 5311 funds for Operating (Urban Transit
. Commissioners Assistance for FY1 0 for Service) Union
j Collier Area Transit to 122 Dixie Lane
I provide public Coco Beach, FL 32931
I transportation service to
residents of rural areas
, of Collier County
I traveling within the rural
area andlor to the
adjacent urban area and
return to rural domicile.
AIfr;;:;Oj2L~KJ
.__._~ Co~tJ Attoroey ......_._._, __.