Audit 331782

Assistance Listing Number, Federal Agency, and Program Name - 97.039, Department of Homeland Security, FEMA Hazard Mitigation Grant Federal Award Identification Number and Year - Not applicable Pass through Entity - Michigan State Police Finding Type - Material weakness and material noncompliance with laws and regulations Criteria - Per 2 CFR 200.303(a) - The recipient and subrecipient must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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 - There is no evidence of review of the reports submitted to the funding agency. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Based on the grant award date, the City submitted three quarterly reports. There was no evidence that the reports were reviewed prior to submission. Cause and Effect - The reports were not reviewed for completeness and accuracy prior to submission, and, as a result, the year end quarterly report included costs that were estimated to be 25 percent of the grant award rather than the actual costs incurred to date. Recommendation - The City should implement controls to ensure that reports are reviewed for completeness and accuracy prior to submission to the funding agency. Views of Responsible Officials and Corrective Action Plan - The City has implemented controls to have a secondary review of reports prior to submission to the funding agency.

Assistance Listing Number, Federal Agency, and Program Name - 97.039, Department of Homeland Security, FEMA Hazard Mitigation Grant Federal Award Identification Number and Year - Not applicable Pass through Entity - Michigan State Police Finding Type - Material weakness and material noncompliance with laws and regulations Criteria - Per 2 CFR 200.303(a) - The recipient and subrecipient must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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 - There is no evidence of review of the reports submitted to the funding agency. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Based on the grant award date, the City submitted three quarterly reports. There was no evidence that the reports were reviewed prior to submission. Cause and Effect - The reports were not reviewed for completeness and accuracy prior to submission, and, as a result, the year end quarterly report included costs that were estimated to be 25 percent of the grant award rather than the actual costs incurred to date. Recommendation - The City should implement controls to ensure that reports are reviewed for completeness and accuracy prior to submission to the funding agency. Views of Responsible Officials and Corrective Action Plan - The City has implemented controls to have a secondary review of reports prior to submission to the funding agency.