Audit 320152

Assistance Listing, Federal Agency, and Program Name - 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - According to 2 CFR section 200.329, entities are required to submit performance reports. Management is responsible for ensuring expenses are allowable and for the accuracy of the reports submitted. Condition - Controls in place were not adequate to ensure expenses were allowable and reported in the proper categories on the performance reports. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During reporting testing, we noted certain expenses were reported in incorrect categories. During our review of the report submitted for the period of October through December 2023, we noted $531,349 of premium pay costs were included in category 4.1, Public Sector Employees, but should have been included in category 6.1, Provision of Government Services, since premium pay is no longer an allowable expense in category 4.1. Cause and Effect - While the Charter Township did have controls in place around reporting and allowability of expenses, they were not sufficient to ensure expenses were properly recorded on the report in line with changing requirements under the terms of the grant. As a result, reports were not in compliance. Recommendation - We recommend the Charter Township ensure the effectiveness of controls to ensure expenditures get reported properly. Views of Responsible Officials and Corrective Action Plan - The Charter Township agrees with the findings. The Charter Township's management will ensure procedures are put into place to ensure expenditures are reported under the correct categories.

Assistance Listing, Federal Agency, and Program Name - 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - According to 2 CFR section 200.329, entities are required to submit performance reports. Management is responsible for ensuring expenses are allowable and for the accuracy of the reports submitted. Condition - Controls in place were not adequate to ensure expenses were allowable and reported in the proper categories on the performance reports. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During reporting testing, we noted certain expenses were reported in incorrect categories. During our review of the report submitted for the period of October through December 2023, we noted $531,349 of premium pay costs were included in category 4.1, Public Sector Employees, but should have been included in category 6.1, Provision of Government Services, since premium pay is no longer an allowable expense in category 4.1. Cause and Effect - While the Charter Township did have controls in place around reporting and allowability of expenses, they were not sufficient to ensure expenses were properly recorded on the report in line with changing requirements under the terms of the grant. As a result, reports were not in compliance. Recommendation - We recommend the Charter Township ensure the effectiveness of controls to ensure expenditures get reported properly. Views of Responsible Officials and Corrective Action Plan - The Charter Township agrees with the findings. The Charter Township's management will ensure procedures are put into place to ensure expenditures are reported under the correct categories.