Audit 372154

Finding Type Significant Deficiency and Noncompliance Federal Program Inflation Reduction Act Urban & Community Forestry Program, ALN #10.727 Criteria In accordance with the Uniform Guidance, the Single Audit report must be submitted to the designated Federal Audit Clearinghouse (FAC) within 30 days of receipt or 9 months after the end of the audit period, whichever is earlier. Condition The Single Audit report was not completed within 9 months after the end of the audit period. Cause This is the first year the Organization has qualified for a Single Audit in many years. As such, it took additional time to receive support and work through questions that arose during testing. Effect Failing to file a Single Audit report on time disallows the Organization from qualifying as a low risk auditee for next year’s Single Audit. Recommendation The Organization should have all audit support readily available during fieldwork and provide timely responses to follow up on questions/requests. Response As noted in the corrective action plan, management agrees with this finding.

Finding Type Significant Deficiency and Noncompliance Federal Program Inflation Reduction Act Urban & Community Forestry Program, ALN #10.727 Criteria Per the Organization’s grant agreement with the Michigan Department of Natural Resources (DNR), allowable costs only include payroll and related costs for a Senior Community Forester. Condition The Organization expensed administrative payroll costs to the DNR grant, which is not allowable under the grant specifications. Cause Organizational oversight by grant supervisors and management personnel. Effect Failing to follow grant specifications and budgets can lead to unallowable costs and compliance issues. Recommendation The Organization should keep track of grant expenditures and review them in detail with regards to allowable costs that are listed specifically in the grant agreement. Response As noted in the corrective action plan, management agrees with this finding.