Audit 359350

2024-001 - Delinquent Filing of Reports Finding Type. Immaterial Noncompliance. Significant Deficiency over Compliance (Reporting). Program. Economic Development Initiative, Project Funding, and Miscellaneous Grants; Department of Housing and Urban Development, Assistance Listing Number 14.251; Award Number B-22-CP-MI-0464. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be submitted timely and supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Cause. The failure reporting was due to inadequate internal controls over the grant management process, including insufficient staffing and lack of proper training for personnel responsible for preparing and submitting the reports. Processes in place were not sufficient to prevent the report from being submitted late. Effect. Late or delinquent submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Organization did not comply with certain contractual reporting requirements. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend the Organization implement procedures to ensure timely submission of all required reports. View of Responsible Official. Management agrees with this finding and has prepared a Corrective Action Plan.

2024-001 - Delinquent Filing of Reports Finding Type. Immaterial Noncompliance. Significant Deficiency over Compliance (Reporting). Program. Economic Development Initiative, Project Funding, and Miscellaneous Grants; Department of Housing and Urban Development, Assistance Listing Number 14.251; Award Number B-22-CP-MI-0464. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be submitted timely and supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Cause. The failure reporting was due to inadequate internal controls over the grant management process, including insufficient staffing and lack of proper training for personnel responsible for preparing and submitting the reports. Processes in place were not sufficient to prevent the report from being submitted late. Effect. Late or delinquent submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Organization did not comply with certain contractual reporting requirements. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend the Organization implement procedures to ensure timely submission of all required reports. View of Responsible Official. Management agrees with this finding and has prepared a Corrective Action Plan.