Audit 360575

FY End
2024-12-31
Total Expended
$16.20M
Findings
14
Programs
26
Organization: County of Berrien (MI)
Year: 2024 Accepted: 2025-06-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
568845 2024-005 Significant Deficiency - L
568846 2024-007 Significant Deficiency - I
568847 2024-006 Significant Deficiency - L
568848 2024-007 Significant Deficiency - I
568849 2024-006 Significant Deficiency - L
568850 2024-007 Significant Deficiency - I
568851 2024-006 Significant Deficiency - L
1145287 2024-005 Significant Deficiency - L
1145288 2024-007 Significant Deficiency - I
1145289 2024-006 Significant Deficiency - L
1145290 2024-007 Significant Deficiency - I
1145291 2024-006 Significant Deficiency - L
1145292 2024-007 Significant Deficiency - I
1145293 2024-006 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $994,845 Yes 1
93.268 Immunization Cooperative Agreements $150,870 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $79,014 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $73,054 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $71,515 - 0
93.994 Maternal and Child Health Services Block Grant to the States $43,521 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $43,372 - 0
93.069 Public Health Emergency Preparedness $39,023 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $31,891 - 0
93.778 Medical Assistance Program $29,902 - 0
93.658 Foster Care Title IV-E $18,596 - 0
66.472 Beach Monitoring and Notification Program Implementation Grants $17,000 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $14,351 - 0
93.991 Preventive Health and Health Services Block Grant $14,250 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $12,788 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $9,474 - 0
93.217 Family Planning Services $7,966 - 0
93.788 Opioid Str $6,031 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $5,070 - 0
97.042 Emergency Management Performance Grants $4,907 - 0
20.600 State and Community Highway Safety $3,365 - 0
10.553 School Breakfast Program $2,925 - 0
10.555 National School Lunch Program $1,262 - 0
93.563 Child Support Services $396 - 0
93.940 Hiv Prevention Activities Health Department Based $242 - 0
16.540 Juvenile Justice and Delinquency Prevention $78 - 0

Contacts

Name Title Type
Q26QYMDHADC9 Douglas D. James Auditee
2699837111 Nathan C. Baldermann, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH AGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the County of Berrien, Michigan (the “County”) under programs of the federal government for the year ended December 31, 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 applicable 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 not elected 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 the Notes to the SEFA for chart/table."

Finding Details

2024-005 – Reporting Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. The County has not performed all of the required Coronavirus State and Local Fiscal Recovery Funds expenditure reporting. Specifically, the Project and Expenditure report for the second quarter of 2024 was not filed. However, these reports were filed for the first, third and fourth quarters of 2024. Cause. This condition is the result of the grant administrator not following County policies and procedures to ensure that reports filed were accurate, complete, and timely. Effect. As a result of this condition, the County did not comply completely with the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds grant. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review the reporting requirements for each grant and complete all reporting as required under the terms of the grant agreement. View of Responsible Officials. Management acknowledges the oversight regarding the 2nd quarter reporting and agrees with the condition as noted. The County will provide a reminder to all grant administrators of the policy. An additional confirmation step is under consideration for verification of completion, at the discretion of County Administration, which would require notification to Financial Services personnel that filing activities have occurred. This oversight process change would require additional resources to complete. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-005 – Reporting Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. The County has not performed all of the required Coronavirus State and Local Fiscal Recovery Funds expenditure reporting. Specifically, the Project and Expenditure report for the second quarter of 2024 was not filed. However, these reports were filed for the first, third and fourth quarters of 2024. Cause. This condition is the result of the grant administrator not following County policies and procedures to ensure that reports filed were accurate, complete, and timely. Effect. As a result of this condition, the County did not comply completely with the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds grant. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review the reporting requirements for each grant and complete all reporting as required under the terms of the grant agreement. View of Responsible Officials. Management acknowledges the oversight regarding the 2nd quarter reporting and agrees with the condition as noted. The County will provide a reminder to all grant administrators of the policy. An additional confirmation step is under consideration for verification of completion, at the discretion of County Administration, which would require notification to Financial Services personnel that filing activities have occurred. This oversight process change would require additional resources to complete. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-007 – Suspension and Debarment Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Suspension and Debarment). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Direct award, and Passed through Michigan State Housing Development Authority and Michigan Department of Natural Resources; All project numbers. Criteria. Under the requirements of 2 CFR Part 180, for covered transactions for procurement and nonprocurement contracts that are expected to equal or exceed $25,000, the grantee must verify that the party being awarded a procurement and nonprocurement contract is not suspended, debarred, or otherwise excluded by checking the list of excluded parties, obtaining certification from the vendor or subrecipient, or including a clause or condition to the covered transaction with that entity. Condition. For three of the four vendors selected for testing, the County was unable to provide evidence that the vendors were not suspended, debarred, or otherwise excluded at the time they were engaged to provide goods or services. Cause. The County does not have the proper internal controls in place to ensure that the appropriate procedures are being followed for covered transactions in accordance with the requirements of the Uniform Guidance. Effect. As a result of this condition, the County was exposed to an increased risk that disbursements of federal awards could be made to vendors or subrecipients suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County review its written policies and procedures over federal awards with employees responsible for grant compliance to ensure that they are being followed consistently. View of Responsible Officials. Vendors are reviewed based on specific criteria upon addition to the accounts payable system for the County. This review process includes review for suspension, debarment, and excluded parties. The County will review grant compliance requirements with employees responsible for federal awards and request retention of documents verifying compliance. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025
2024-006 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury -  COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) (ALN 21.027); Passed through Michigan State Housing Development Authority, Michigan Department of Natural Resources, and Michigan Strategic Fund; All project numbers. 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 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. During our audit procedures over the County's reporting process for CSLFRF grants received through pass-through entities, we noted that none of the financial reports selected for testing included documentation that the reports were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Officials. County grant policies and procedures outline requirements of review and approval of grant reporting. Management recognizes the importance of establishing controls as noted, however policies and procedures stop short of requiring the signature and dating of approvals by independent reviewers. Policies and procedures will be modified to include verbiage requiring documentation of review and approval, along with reconciliations to the general ledger prior to submission. Responsible Official. County Administrator/Controller Estimated Completion Date. December 31, 2025