Audit 383047

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: SLFRP0127-FRF2969-774301 Pass-through Entity – Department of Environment, Great Lakes, and Energy Finding Type – Significant deficiency in internal control over compliance Repeat Finding - No Criteria - per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for reporting compliance, it was noted the client failed to submit monthly reports within the required time frame. 3 out of 4 samples selected for testing were not submitted on time. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Current Management procedures and controls were not sufficient to ensure that report was completing in a timely manner, therefore required reports were not submitted on time. Effect – The City did not submit monthly report on time. Recommendation – We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that reports are completed and submitted by the required due dates. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 16.922 Equitable Sharing Federal Forfeitures Program Federal Award Identification Number and Year: MI8245300 Direct award – Department of Justice Finding Type – Significant deficiency in internal control over compliance Repeat Finding - No Criteria - Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – During our testing for Reporting compliance, it was noted the client failed to submit Equitable Sharing Agreement and Certification within the required time frame. The Equitable Sharing Agreement and Certification was submitted late. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Current Management procedures and controls were not sufficient to ensure that report was completing in a timely manner, therefore required report was not submitted on time. Effect – The City did not submit monthly report on time. Recommendation – We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that reports are completed and submitted by the required due dates. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.