Audit 369986

Program Name – Temporary Assistance for Needy Families (TANF); Services for Trafficking Victims ; Violence Against Women Formula Grants CFDA Number – 93.558 16.320, 16.588 Finding Type – Significant Deficiency and Noncompliance Criteria – Title 2 CFR 200.430(i)(1) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Title 2 CFR 200.431(b) states for Leave the cost of fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as for annual leave, family-related sick leave, sick leave, holidays, court leave, military leave, administrative leave, and other similar benefits, are allowable if the costs are equitably allocated to all related activities, including Federal awards. Condition and Description – During our procedures, we noted, the Agency did not properly allocate its employees’ leave hours for employees working on multiple activities. For 13 out of 20 samples selected for testing, Controls were not in place to ensure that leave time was proportionately distributed based on actual time worked on each activity. Question Costs – Unknown Identification of a Repeat Finding – This is not a repeat finding from the immediate previous audit. Cause/Effect – Controls were not in place to ensure the proper allocation of its employees’ leave hours for employees working on multiple projects. Recommendation – We recommend that the Agency implement formal policies and procedures to ensure leave hours are allocated consistently and accurately across all activities based on the actual proportion of time employees spend on each activity. Views of Responsible Officials and Planned Corrective Actions – Corrective action was implemented in March 2025. No employee leave hours are to be billed to the TANF grant. The cost of employee leave will be born by non-governmental grants for all Victim Service staff.

Program Name – STOP Violence Grant- Victim Services CFDA Number – 16.588 Pass-through Entity – Michigan Department of Health and Human Services Finding Type – Significant Deficiency and Noncompliance Criteria – Per 2 CFR § 200.303 (Internal Controls), recipients of federal funds must establish and maintain effective internal controls over compliance. Additionally, the program requires recipients to maintain adequate documentation to support that services are provided to eligible participants. This includes maintaining enrollment forms or other supporting records that verify participant eligibility as required by the applicable federal regulations. Condition and Description – For 4 out of 20 samples tested, during our testing of participant eligibility under the STOP Violence against Women Formula Grants, the Organization was unable to provide enrollment forms or supporting documentation. These forms are necessary to verify that participants met the program’s eligibility criteria. Questioned Costs – Unknown. Id entification of a Repeat Finding- This is not a repeat finding from the immediate previous audit. Cause/Effect – The absence of enrollment documentation appears to result from a lack of internal controls over participant intake and recordkeeping processes. Specifically, procedures were not in place to ensure all required eligibility documentation was collected and retained in participant files. As a result, the Organization was unable to demonstrate that services were provided only to eligible individuals. Recommendation – We recommend that the Organization implement and enforce procedures to ensure all required enrollment and eligibility documentation is consistently collected and retained for each program participant. Staff should be trained on eligibility requirements and federal documentation. View of Responsible Officials and Planned Corrective Action – Procedures exist to ensure all clients are enrolled and eligible for services under the STOP grant. The external audit did not take into account the legal screening process and the intake forms used to determine eligibility and complete client enrollment, outside of the Apricot system. Enforcement of enrollment procedures within Apricot, and oversight from department Directors, has been made a priority.