Audit 309614

FY End
2023-11-30
Total Expended
$1.05M
Findings
4
Programs
12
Organization: City of Livonia, Michigan (MI)
Year: 2023 Accepted: 2024-06-24

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
401659 2023-002 Material Weakness - N
401660 2023-002 Material Weakness - N
978101 2023-002 Material Weakness - N
978102 2023-002 Material Weakness - N

Contacts

Name Title Type
WG2XSL4YB7N4 Gerald Sabo Auditee
7344212000 Stacey Reeves Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Livonia, Michigan (the “City”) under programs of the federal government for the year ended November 30, 2023. The information in the 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported in the Schedule are reported on the same basis of accounting as the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass through entity identifying numbers are presented where available. The City has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance. The grantee received the following noncash assistance during the year ended November 30, 2023 that is included in the schedule of expenditures of federal awards: See the Notes to the SEFA for table.

Finding Details

Assistance Listing, Federal Agency, and Program Name - 14.218, Department of Housing and Urban Development, CDBG Entitlement Grants Cluster - Community Development Block Grant/Entitlement Grants (CDBG) Federal Award Identification Number and Year - B-22-MC-26-0008/B-23-MC-26-0008 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 24 CFR Part 58 requires enivronmental review procedures for entities assuming HUD environmental responsibilities. Condition - Tiered environmental reviews were not completed for the City’s emergency and minor home rehabilitation activities. The environmental review for major rehabilitation activities was incomplete and was not submitted in HEROS. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During a monitoring visit by HUD in March 2023, it was noted that environmental reviews were incomplete or not completed. These findings related to program year 2022. The environmental reviews were subsequently completed and the finding was closed out by HUD in March 2024. Cause and Effect - Certain activities did not have environmental reviews conducted or the reviews were incomplete. Federal funds were spent prior to ensuring that the activity did not cause an adverse effect on the environment. Recommendation - Internal controls should be implemented to ensure environmental reviews are completed for all applicable activities. Views of Responsible Officials and Corrective Action Plan - This finding was partly due to the staff members' need for more training. HUD mandated that staff undergo training on HEROS as part of the resolution. The extra training enabled staff to revisit and finalize previous environmental reviews, ensuring compliance with environmental review regulations. After a follow up with HUD, the agency considers the issue resolved. Going forward, environmental reviews will be conducted once every five years, which is in compliance with HUD regulations. Tiered reviews will be added as projects are completed. Our rehab specialist will be responsible for entries in HEROS, and the division director will be responsible for public notices and hearings.
Assistance Listing, Federal Agency, and Program Name - 14.218, Department of Housing and Urban Development, CDBG Entitlement Grants Cluster - Community Development Block Grant/Entitlement Grants (CDBG) Federal Award Identification Number and Year - B-22-MC-26-0008/B-23-MC-26-0008 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 24 CFR Part 58 requires enivronmental review procedures for entities assuming HUD environmental responsibilities. Condition - Tiered environmental reviews were not completed for the City’s emergency and minor home rehabilitation activities. The environmental review for major rehabilitation activities was incomplete and was not submitted in HEROS. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During a monitoring visit by HUD in March 2023, it was noted that environmental reviews were incomplete or not completed. These findings related to program year 2022. The environmental reviews were subsequently completed and the finding was closed out by HUD in March 2024. Cause and Effect - Certain activities did not have environmental reviews conducted or the reviews were incomplete. Federal funds were spent prior to ensuring that the activity did not cause an adverse effect on the environment. Recommendation - Internal controls should be implemented to ensure environmental reviews are completed for all applicable activities. Views of Responsible Officials and Corrective Action Plan - This finding was partly due to the staff members' need for more training. HUD mandated that staff undergo training on HEROS as part of the resolution. The extra training enabled staff to revisit and finalize previous environmental reviews, ensuring compliance with environmental review regulations. After a follow up with HUD, the agency considers the issue resolved. Going forward, environmental reviews will be conducted once every five years, which is in compliance with HUD regulations. Tiered reviews will be added as projects are completed. Our rehab specialist will be responsible for entries in HEROS, and the division director will be responsible for public notices and hearings.
Assistance Listing, Federal Agency, and Program Name - 14.218, Department of Housing and Urban Development, CDBG Entitlement Grants Cluster - Community Development Block Grant/Entitlement Grants (CDBG) Federal Award Identification Number and Year - B-22-MC-26-0008/B-23-MC-26-0008 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 24 CFR Part 58 requires enivronmental review procedures for entities assuming HUD environmental responsibilities. Condition - Tiered environmental reviews were not completed for the City’s emergency and minor home rehabilitation activities. The environmental review for major rehabilitation activities was incomplete and was not submitted in HEROS. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During a monitoring visit by HUD in March 2023, it was noted that environmental reviews were incomplete or not completed. These findings related to program year 2022. The environmental reviews were subsequently completed and the finding was closed out by HUD in March 2024. Cause and Effect - Certain activities did not have environmental reviews conducted or the reviews were incomplete. Federal funds were spent prior to ensuring that the activity did not cause an adverse effect on the environment. Recommendation - Internal controls should be implemented to ensure environmental reviews are completed for all applicable activities. Views of Responsible Officials and Corrective Action Plan - This finding was partly due to the staff members' need for more training. HUD mandated that staff undergo training on HEROS as part of the resolution. The extra training enabled staff to revisit and finalize previous environmental reviews, ensuring compliance with environmental review regulations. After a follow up with HUD, the agency considers the issue resolved. Going forward, environmental reviews will be conducted once every five years, which is in compliance with HUD regulations. Tiered reviews will be added as projects are completed. Our rehab specialist will be responsible for entries in HEROS, and the division director will be responsible for public notices and hearings.
Assistance Listing, Federal Agency, and Program Name - 14.218, Department of Housing and Urban Development, CDBG Entitlement Grants Cluster - Community Development Block Grant/Entitlement Grants (CDBG) Federal Award Identification Number and Year - B-22-MC-26-0008/B-23-MC-26-0008 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 24 CFR Part 58 requires enivronmental review procedures for entities assuming HUD environmental responsibilities. Condition - Tiered environmental reviews were not completed for the City’s emergency and minor home rehabilitation activities. The environmental review for major rehabilitation activities was incomplete and was not submitted in HEROS. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During a monitoring visit by HUD in March 2023, it was noted that environmental reviews were incomplete or not completed. These findings related to program year 2022. The environmental reviews were subsequently completed and the finding was closed out by HUD in March 2024. Cause and Effect - Certain activities did not have environmental reviews conducted or the reviews were incomplete. Federal funds were spent prior to ensuring that the activity did not cause an adverse effect on the environment. Recommendation - Internal controls should be implemented to ensure environmental reviews are completed for all applicable activities. Views of Responsible Officials and Corrective Action Plan - This finding was partly due to the staff members' need for more training. HUD mandated that staff undergo training on HEROS as part of the resolution. The extra training enabled staff to revisit and finalize previous environmental reviews, ensuring compliance with environmental review regulations. After a follow up with HUD, the agency considers the issue resolved. Going forward, environmental reviews will be conducted once every five years, which is in compliance with HUD regulations. Tiered reviews will be added as projects are completed. Our rehab specialist will be responsible for entries in HEROS, and the division director will be responsible for public notices and hearings.