Audit 398574

Assistance Listing Number, Federal Agency, and Program Name: All major programs Federal Award Identification Number and Year: 2023 Finding Type – Material weakness over compliance Repeat Finding - Yes Criteria – Per 2 CFR 200.512 (a) (1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514. Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended December 31, 2023. Context – The County’s single audit was not completed prior to the due date of data collection form. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – The County’s Schedule of Federal Awards was not prepared in a timely manner. Effect – Data collection forms were not submitted on time. Recommendation – We recommend that the County develop a reliable system to close the financial records in a timely manner. View of Responsible Officials and Corrective Action Plan – Management agrees with finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.558, Partnership, Accountability, Training, Hope (PATH) Federal Award Identification Number and Year: 2201MITANF & 2301MITANF 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 the quarterly expenditures report for the period ended March 31, 2023 within the required time frame. Context – The required report was not submitted by the due date. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management noted that the accounting staff were not completing necessary accounting tasks in a timely manner and, therefore required reports were not submitted on time. Effect – The report was submitted late. 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 finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.568, Low-Income Home Energy Assistance Federal Award Identification Number and Year: E20230849-001, E2024242910-00, E20230808-00, E2024-1887-00 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 the monthly Statement of Expenditures for six months between two programs and the final Statement of Expenditures within the required time frame. Context – The required reports were not submitted by the due date. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management noted that the accounting staff were not completing necessary accounting tasks in a timely manner and, therefore required reports were not submitted on time. Effect – The reports were submitted late. 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 finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.569, Community Services Block Grant Federal Award Identification Number and Year: E20234456-001, E20242464-001, E20230048-001, E20241850-001 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 the monthly Statement of Expenditures for four months and the final Statement of Expenditures within the required time frame. Context – The required reports were not submitted by the due date. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – The management noted that the accounting staff were not completing necessary accounting tasks in a timely manner and, therefore required reports were not submitted on time. Effect – The reports were submitted late. 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 finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.568, Low-Income Home Energy Assistance Federal Award Identification Number and Year: E20230849-001, E2024242910-00, E20230808-00, E2024-1887-00 Finding Type – Significant deficiency in internal control over compliance Repeat Finding - No Criteria – Per the State of Michigan’s Program Guidance, an eligible participant in the program must fill out the declaration of no income to certify that the participant does not have any income to declare at the date of apply for the program. Condition – The County could not provide the declaration of no income to support the eligibility requirement for 1 of 60 participant files selected for testing. Context – The participant self-declaration of no income was missing. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – The County neglected to obtain and or keep the required declaration. The participant’s file does not contain the required information. Effect – The eligibility criteria for one participant subject to our testing was not supported. Recommendation – We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on a regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that required eligibility documentation is completed and maintained. View of Responsible Officials and Corrective Action Plan – Management agrees with finding. See corrective action plan.