Audit 341505

Agency: U.S. Department of Treasury Assistance Listing Number: 21.027 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Condition: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Criteria: Uniform Guidance requires Detroit Police Athletic League, Inc. (DPAL) to establish and maintain effective internal control over federal awards to provide reasonable assurance DPAL is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the award. Questioned Costs: The amount of questioned costs cannot be determined. Context: DPAL is required by the Uniform Guidance to have effective internal control relating to activities allowed or unallowed and allowable costs. Effect: Without verifiable evidence of controls in place, the possibility exists that a control was not established or maintained during the period which could lead to noncompliance not being identified by management. Cause: Although management has indicated that reviews were taking place, management did not have sufficient and verifiable documented evidence of the reviews that occurred during the year for payroll and non-payroll transactions. Recommendation: We recommend management review current internal controls and implement a process where the preparer and reviewer retain verifiable evidence of the review. Management's Response: Management agrees with the finding and will make operational and reporting improvements to improve documentation of expenditure reviews moving forward.

Agency: U.S. Department of Treasury Assistance Listing Number: 21.027 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Condition: The Organization did not have adequate and effective controls over compliance in place as it relates to activities allowed or unallowed and allowable costs. We noted instances where payroll and non-payroll related expenditures did not have documentation of review. Criteria: Uniform Guidance requires Detroit Police Athletic League, Inc. (DPAL) to establish and maintain effective internal control over federal awards to provide reasonable assurance DPAL is managing the federal awards in compliance with federal statutes, regulations and the terms and conditions of the award. Questioned Costs: The amount of questioned costs cannot be determined. Context: DPAL is required by the Uniform Guidance to have effective internal control relating to activities allowed or unallowed and allowable costs. Effect: Without verifiable evidence of controls in place, the possibility exists that a control was not established or maintained during the period which could lead to noncompliance not being identified by management. Cause: Although management has indicated that reviews were taking place, management did not have sufficient and verifiable documented evidence of the reviews that occurred during the year for payroll and non-payroll transactions. Recommendation: We recommend management review current internal controls and implement a process where the preparer and reviewer retain verifiable evidence of the review. Management's Response: Management agrees with the finding and will make operational and reporting improvements to improve documentation of expenditure reviews moving forward.