FAC Explorer

Audit 297078

FY End
2023-09-30
Total Expended
$11.64M
Findings
2
Programs
27
Organization: Eaton County (MI)
Year: 2023 Accepted: 2024-03-25
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384027 2023-002 Material Weakness - I
960469 2023-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.11M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $635,000 Yes 0
93.268 Immunization Cooperative Agreements $252,235 - 0
93.889 National Bioterrorism Hospital Preparedness Program $157,120 - 0
93.563 Child Support Enforcement $120,286 - 0
97.067 Homeland Security Grant Program $94,322 - 0
16.710 Public Safety Partnership and Community Policing Grants $93,750 - 0
16.593 Residential Substance Abuse Treatment for State Prisoners $74,389 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $58,867 - 0
93.991 Preventive Health and Health Services Block Grant $55,135 - 0
16.838 Comprehensive Opioid Abuse Site-Based Program $51,346 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $39,000 - 0
93.069 Public Health Emergency Preparedness $33,374 - 0
20.600 State and Community Highway Safety $31,303 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $29,602 - 0
93.658 Foster Care_title IV-E $25,000 - 0
10.553 School Breakfast Program $11,290 - 0
97.042 Emergency Management Performance Grants $10,602 - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $6,134 - 0
97.012 Boating Safety Financial Assistance $5,336 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $3,949 - 0
10.555 National School Lunch Program $3,593 - 0
16.606 State Criminal Alien Assistance Program $3,108 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,001 - 0
93.778 Medical Assistance Program $2,356 - 0
93.994 Maternal and Child Health Services Block Grant to the States $1,008 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $462 - 0

Contacts

Name Title Type
HV2ALQ8NDTH2 Connie Sobie Auditee
5175437500 Nathan C. Baldermann, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH AGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Eaton County, Michigan (the “County”) under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. The County's reporting entity is defined in Note 1 of the financial statements. The County's financial statement includes the operations of the Eaton County Road Commission discretely presented component unit and the Eaton County Health and Rehabilitation Services Facility enterprise fund, which received federal awards that are not included in the Schedule for the year ended September 30, 2023 as these entities were separately audited. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The County receives certain federal grant as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows:“See the Notes to the SEFA for chart/table”.

Finding Details

Finding 2023-002
2023-02 – Procurement, Suspension and Debarment Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Program. COVID-19 - State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027 Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. 2 CFR 200.320 requires that these purchases must adhere to one of the allowable procurement methods (sealed bids, competitive proposals, noncompetitive procurement) and maintain documentation of this procurement decision. Condition. For the one vendor tested that had expenditures of $2,256,725, the County was unable to provide documentation to support that competitive bidding was performed in accordance with the County's policies and procedures. Cause. This condition was caused by management oversight. Effect. As a result of this condition, the procurement requirements as outlined within the County's policy were not followed. Questioned Costs. The total charges included in our sample that were not supported by appropriate documentation amounted to $2,256,725. Recommendation. We recommend that the County follow their policies and retain documentation to support those policies are abided by. View of Responsible Officials. Management recognizes and agrees with the recommendations of the auditors. The costs were allowable under the CSLFRF with respect to the eligible use of funds. The County has a "Policies and Procedures of Federal Awards Administration" outlining the requirement for purchases made with federal funds. The County had an existing project development agreement with a vendor to conduct a preliminary evaluation of the County's facilities and energy costs. It is management's view the County should have provided the sole source justification form for use of the vendor for implementation of the project with the reason indicated as it was currently under contract through a November 17, 2021, Resolution (#21-11-119 to Approve Energy and Infrastructure Project Development Agreement) rather than rely upon the resolution as the basis for the sole source non-competitive proposals. Management intends to follow the existing policy in its entirety, but will recommend changes to procedures to ensure compliance with purchasing policies. These changes to procedures will be recommended on the basis that simplification of the process is important since the use of sole sourcing of vendors is intended to occur on an infrequent basis. Responsible Official. Connie Sobie, Controller/Administrator Estimated Completion Date. September 30, 2024.
Finding 2023-002
2023-02 – Procurement, Suspension and Debarment Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Program. COVID-19 - State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027 Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. 2 CFR 200.320 requires that these purchases must adhere to one of the allowable procurement methods (sealed bids, competitive proposals, noncompetitive procurement) and maintain documentation of this procurement decision. Condition. For the one vendor tested that had expenditures of $2,256,725, the County was unable to provide documentation to support that competitive bidding was performed in accordance with the County's policies and procedures. Cause. This condition was caused by management oversight. Effect. As a result of this condition, the procurement requirements as outlined within the County's policy were not followed. Questioned Costs. The total charges included in our sample that were not supported by appropriate documentation amounted to $2,256,725. Recommendation. We recommend that the County follow their policies and retain documentation to support those policies are abided by. View of Responsible Officials. Management recognizes and agrees with the recommendations of the auditors. The costs were allowable under the CSLFRF with respect to the eligible use of funds. The County has a "Policies and Procedures of Federal Awards Administration" outlining the requirement for purchases made with federal funds. The County had an existing project development agreement with a vendor to conduct a preliminary evaluation of the County's facilities and energy costs. It is management's view the County should have provided the sole source justification form for use of the vendor for implementation of the project with the reason indicated as it was currently under contract through a November 17, 2021, Resolution (#21-11-119 to Approve Energy and Infrastructure Project Development Agreement) rather than rely upon the resolution as the basis for the sole source non-competitive proposals. Management intends to follow the existing policy in its entirety, but will recommend changes to procedures to ensure compliance with purchasing policies. These changes to procedures will be recommended on the basis that simplification of the process is important since the use of sole sourcing of vendors is intended to occur on an infrequent basis. Responsible Official. Connie Sobie, Controller/Administrator Estimated Completion Date. September 30, 2024.