Audit 36569

FY End

2022-09-30

Total Expended

$1.15M

Findings

2

Programs

6

Organization: Council on Aging, Inc. Serving St. Clair County (MI)

Year: 2022 Accepted: 2023-06-26

Auditor: Uhy LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
28456	2022-001	Significant Deficiency	-	P
604898	2022-001	Significant Deficiency	-	P

ALN	Program	Spent	Major
20.509	Formula Grants for Rural Areas and Tribal Transit Program	$263,516	-
93.045	Special Programs for the Aging_title Iii, Part C_nutrition Services	$240,851	Yes
93.053	Nutrition Services Incentive Program	$220,376	Yes
93.052	National Family Caregiver Support, Title Iii, Part E	$28,346	-
94.011	Foster Grandparent Program	$23,989	-
93.044	Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers	$4,250	Yes

Contacts

Name	Title	Type
NC5EDKZFMRG5	Marcie Chambers	Auditee
8109878811	Paul Bailey	Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION OF REVENUES WITH EXPENDITURES OF FEDERAL AWARD PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Council on Aging, Inc., serving St. Clair County (the Council), for the year ended September 30, 2022. Expenditures reported on the Schedule are reported on the same basis of accounting, the accrual basis, as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.Revenue has been accrued at September 30, 2022 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as deferred revenue.For purposes of charging indirect costs to federal awards, the Council has elected to not use the 10 percent de minimis cost rate.Because the Schedule presents only a selected portion of the operations of the Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following schedule reconciles the revenue from federal sources reported in the September 30, 2022 financial statements to the federal award expenditures reported on the Schedule. See Notes to the SEFA for chart/table.

Finding Details

Finding 2022-001

2022-001: Controls over the payroll process should be enhanced. Type: Significant deficiency in internal control over compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-through Grantor, and Pass-through Name and Grant Number: Assistance Listing #93.044, U.S. Department of Health and Human Services, Passed Through Area Agency on Aging, Special Programs for the Aging-Grants for Supportive Services and Senior Centers, Title III, Part B - Chore, 20-9046-C Criteria: Per 2CFR 200.430, personnel expenses that are charged to a federal program must, among other things, be based on records that accurately reflect the work performed. Condition: During our testing of payroll charged to the program, we noted differences between the personal activity reports and the amount charged to the program. Cause: The Council?s calculation of the allocation of wages to the program did not include essential pay or opt-out compensation as part of the hours worked. Context: Four (4) out of seven (7) personal activity reports tested for the Chore program differed from the amount charged to the program. Effect: No financial effect since the Council charges less than 100% of the eligible salaries, wages, and payroll taxes to the Chore program. Recommendation: The control process should be reviewed and modified appropriately so that control would be established to note any differences between the amounts being charged and personal activity reports.

Finding 2022-001

2022-001: Controls over the payroll process should be enhanced. Type: Significant deficiency in internal control over compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-through Grantor, and Pass-through Name and Grant Number: Assistance Listing #93.044, U.S. Department of Health and Human Services, Passed Through Area Agency on Aging, Special Programs for the Aging-Grants for Supportive Services and Senior Centers, Title III, Part B - Chore, 20-9046-C Criteria: Per 2CFR 200.430, personnel expenses that are charged to a federal program must, among other things, be based on records that accurately reflect the work performed. Condition: During our testing of payroll charged to the program, we noted differences between the personal activity reports and the amount charged to the program. Cause: The Council?s calculation of the allocation of wages to the program did not include essential pay or opt-out compensation as part of the hours worked. Context: Four (4) out of seven (7) personal activity reports tested for the Chore program differed from the amount charged to the program. Effect: No financial effect since the Council charges less than 100% of the eligible salaries, wages, and payroll taxes to the Chore program. Recommendation: The control process should be reviewed and modified appropriately so that control would be established to note any differences between the amounts being charged and personal activity reports.