FAC Explorer

Audit 346615

FY End
2024-09-30
Total Expended
$24.29M
Findings
2
Programs
13
Organization: Isabella County (MI)
Year: 2024 Accepted: 2025-03-18
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528649 2024-001 Significant Deficiency - L
1105091 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $20.30M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.05M Yes 1
93.563 Child Support Services $67,290 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $35,549 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $34,555 - 0
97.067 Homeland Security Grant Program $31,092 - 0
97.047 Bric: Building Resilient Infrastructure and Communities $27,682 - 0
93.053 Nutrition Services Incentive Program $26,861 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $12,511 - 0
97.042 Emergency Management Performance Grants $12,455 - 0
93.778 Medical Assistance Program $9,844 - 0
97.012 Boating Safety Financial Assistance $6,001 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $4,247 - 0

Contacts

Name Title Type
LUASKRANRXV1 Chris Witmer Auditee
9893174225 Doug Deeter Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Isabella County, Michigan (the “County”) under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has elected not to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. See chart in Note 4.
Title: PASS-THROUGH ENTITIES Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Isabella County, Michigan (the “County”) under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has elected not to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The County receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: See Note 5 for chart/table
Title: COMMUNITY FACILITIES LOANS AND GRANTS LOANS BALANCE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Isabella County, Michigan (the “County”) under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has elected not to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. See chart in Note 3.

Finding Details

Finding 2024-001
Variance in Quarterly Reporting. Finding Type. Immaterial Noncompliance (Reporting)/Significant Deficiency in Internal Control over Compliance. Program. Coronavirus State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; ALN 21.027. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. During our audit, we noted a variance between amounts reported in quarters one and four of the quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2024. Cause. This condition was caused by management not appropriately tracking project expenditures in sufficient detail on the general ledger to allow for reconciliation to the underlying accounting records and each quarterly P&E report. Effect. As a result of this condition, the County did not fully comply with the requirements of the grant award or the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as the reporting was deemed to be inaccurate, not the financial records. Recommendation. We recommend that the County reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. View of Responsible Officials. Management will conduct cross-checks between the general ledger entries and amounts reported on the quarterly ARPA P&E reports to ensure accuracy in amounts reported for the period. Management will also review classification of project categories on quarterly P&E reports to ensure accuracy.
Finding 2024-001
Variance in Quarterly Reporting. Finding Type. Immaterial Noncompliance (Reporting)/Significant Deficiency in Internal Control over Compliance. Program. Coronavirus State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; ALN 21.027. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. During our audit, we noted a variance between amounts reported in quarters one and four of the quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2024. Cause. This condition was caused by management not appropriately tracking project expenditures in sufficient detail on the general ledger to allow for reconciliation to the underlying accounting records and each quarterly P&E report. Effect. As a result of this condition, the County did not fully comply with the requirements of the grant award or the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as the reporting was deemed to be inaccurate, not the financial records. Recommendation. We recommend that the County reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. View of Responsible Officials. Management will conduct cross-checks between the general ledger entries and amounts reported on the quarterly ARPA P&E reports to ensure accuracy in amounts reported for the period. Management will also review classification of project categories on quarterly P&E reports to ensure accuracy.