FAC Explorer

Audit 354849

FY End
2024-09-30
Total Expended
$1.12M
Findings
4
Programs
8
Organization: Manistee County (MI)
Year: 2024 Accepted: 2025-04-29
Auditor: Gabridge & Company Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
556169 2024-001 Significant Deficiency - B
556170 2024-001 Significant Deficiency - B
1132611 2024-001 Significant Deficiency - B
1132612 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.563 Child Support Services $449,758 Yes 1
97.056 Port Security Grant Program $273,599 - 0
15.226 Payments in Lieu of Taxes $158,514 - 0
21.032 Local Assistance and Tribal Consistency Fund $102,583 - 0
10.665 Schools and Roads - Grants to States $69,386 - 0
97.042 Emergency Management Performance Grants $7,639 - 0
10.704 Law Enforcement Agreements $7,549 - 0
16.607 Bulletproof Vest Partnership Program $3,803 - 0

Contacts

Name Title Type
KJLUL8KJM3J6 Susan Zielinski Auditee
2313983503 Joe Verlin Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: 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, 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. For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Manistee County (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. The County’s reporting entity is defined in Note 1 of the County’s Audited Financial Statements. The County’s basic financial statements include the operations of the Manistee County Blacker Airport Authority, the Manistee County 9-1-1/Central Dispatch, the Manistee County Library, the Manistee County Transportation, Inc., the Manistee County Road Commission, and the Manistee County Medical Care Facility, which received federal awards and which are not included in the Schedule for the year ended September 30, 2024 because each entity arranged for a separate financial statement audit and either did not meet the criteria for a single audit in accordance with the Uniform Guidance (Manistee County Blacker Airport Authority, Manistee County 9-1-1/Central Dispatch, Manistee County Library, Manistee County Medical Care Facility, and Manistee County Road Commission) or met the criteria and had a single audit engagement performed in accordance with the Uniform Guidance (Manistee County Transportation, Inc.).
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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, 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. For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. 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, 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. For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
Title: NOTE C - RECONCILIATION TO FINANCIAL STATEMENTS Accounting Policies: 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, 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. For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The amounts presented in the Schedule reconcile to the amounts presented in the financial statements as federal sources in the amount of $1,124,661.

Finding Details

Finding 2024-001
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding 2024-001
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding 2024-001
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding 2024-001
2024-001 – Child Support Services - Unallowable Costs Finding Type: Significant deficiency in internal controls and immaterial noncompliance Criteria: Per 2 CFR § 200.303 (Internal Controls), non-federal entities must establish and maintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Additionally, 2 CFR § 200.430 (Compensation—Personal Services) requires that payroll costs charged to federal awards must be based on records that accurately reflect the work performed and be supported by adequate documentation. Condition/Finding: During our audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. Cause: The County’s internal controls were not adequately designed or implemented to ensure compliance with federal grant requirements. Effect: As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024. Recommendation: We recommend that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation. View of Responsible Officials (Corrective Action): See corrective action plan.