Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing Number, Federal Agency, and Program Name - ALN 14.218, Community Development Block Grants Cluster, Community Development Block Grants Program (CDBG)
Federal Award Identification Number and Year – B-18-UC-26-002 (2018), B-19-UC-26-002 (2019), B-20-UC-26-002 (2020), B-21-UC-26-002 (2021), B-22-UC-26-002 (2022)
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding – Yes, 2022-007
Criteria - The Federal Funding Accountability and Transparency Act (FFATA), as amended by 6202 of Public Law 110-252, requires a prime grant awardee to report its subgrants using the FFATA Subaward Reporting System (FSRS) tool. The prime recipient will have until the end of the month plus one additional month after an award or subaward is obligated to fulfill the reporting requirement.
Condition - The County did not file the required FFATA reports for CDBG subrecipients timely.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The following table summarizes the transactions examined and the noncompliance identified for subwards obligated during fiscal year 2023 for which the FFATA report was not filed timely:
See findings text of 2023-006 for table
Cause and Effect - The County’s processes did not properly identify the FFATA filing requirements and, as a result, failed to file any of the required FFATA reports timely.
Recommendation - The County should implement controls to ensure that required reports are filed in a timely manner.
Views of Responsible Officials and Corrective Action Plan - FFATA was brought up to date for prior years. The actual due date of the report was not known. Notes regarding the due date of the annual report have been made indicating to file 30 days within the approval of Subrecipient budgets.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, U.S. Department of Housing and Urban Development, Entitlement Grants Cluster (CDBG), Community Development Block Grants/Entitlement Grants
Federal Award Identification Number and Year - All grants listed on SEFA
Pass-through Entity - Not applicable
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 24 CFR section 570.603 - Grantees must adhere to the labor standards applicable to non-volunteer labor per 42 USC 53110 when rehabilitating residential property that contains no fewer than eight units, which includes ensuring prevailing wage rates are being used. Additionally, per 2 CFR section 200.303 - Grantees must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The County did not have controls in place, during the year under audit, to ensure that the required certified payrolls were received and reviewed by the County.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - The County has a process in place to receive and review weekly payroll certifications from contractors and subcontractors. However, there is not a control in place to ensure that all weekly payroll certifications have been received and reviewed.
Cause and Effect - The County did not have controls in place ensure that the required certified payrolls were received and reviewed. For the sample selected for testing, the County was still in compliance with the applicable laws and regulations.
Recommendation - We recommend that the County implement a control to ensure that the required certified payrolls from contractors and subcontractors are received and reviewed timely.
Views of Responsible Officials and Corrective Action Plan - A process will be put into place to ensure certified payrolls are received and reviewed by two staff employees.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants - Public Assistance (FEMA)
Federal Award Identification Number and Year - All grants under ALN
Pass-through Entity - Michigan Department of State Police
Finding Type - Material weakness
Repeat Finding - Yes
2022-004
Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with Section 200.502.
Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not applicable
Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502.
Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination.
Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate.
Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.