FAC Explorer

Audit 54614

FY End
2022-09-30
Total Expended
$1.00M
Findings
4
Programs
7
Organization: Missaukee County (MI)
Year: 2022 Accepted: 2023-03-28
Auditor: Gabridge & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61321 2022-001 Material Weakness - L
61322 2022-002 - - P
637763 2022-001 Material Weakness - L
637764 2022-002 - - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $776,121 Yes 2
93.563 Child Support Enforcement $135,592 - 0
93.658 Foster Care_title IV-E $12,467 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $11,121 - 0
97.042 Emergency Management Performance Grants $10,406 - 0
97.012 Boating Safety Financial Assistance $10,100 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $1,620 - 0

Contacts

Name Title Type
SZKNMNLJHT35 Liz Vogel Auditee
2318394967 Joe Verlin Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Reconciliation of the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and have been identified in the Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the10% de minimis cost rate as permitted by ?200.414 of the Uniform Guidance. The expenditures presented in the Schedule reconcile to the federal revenues presented in the financial statements of $1,000,135.
Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and have been identified in the Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the County has not elected to use the10% de minimis cost rate as permitted by ?200.414 of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Missaukee County (the County) under programs of the federal government for the year ended September 30, 2022. The information in this schedule 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. Because the schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flowsof the County.The Countys reporting entity is defined in Note 1 of the Countys financial statements.

Finding Details

Finding 2022-001
2022-001 - Preparation of the Schedule of Expenditures of Federal Awards Finding Type: Material weakness over financial reporting. Programs: American Recovery Plan Act (ALN #21.027) Criteria: The Uniform Guidance, ?200.510, requires that a recipient of federal awards subject to a single audit ?prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements, which must include the total Federal awards expended as determined in accordance with ?200.502.? In addition, the County is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (the "Schedule") in accordance with these guidelines. Condition/Finding: Management provided an initial Schedule of Expenditure of Awards; however, material adjustments were discovered during the audit process. This condition was primarily caused by the extreme infrequency of the County being required to prepare a Schedule of Expenditures of Federal Awards and the corresponding lack of established policies and procedures to produce an accurate Schedule. As a result of this condition, the County is not in compliance with the required written procedures under the Uniform Guidance. Cause: Required federal expenditures where not accurately recorded on the Schedule of Expenditures of Federal Awards. Effect: The schedule of expenditures of federal awards, would have been materially misstated if audit adjustments hadn?t been made. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: The County should develop and implement written procedures over the preparation of the schedule of expenditures of federal awards to be used as a reference for future year(s) subject to single audit reporting.
Finding 2022-002
2022-002 - Written Policies Required by the Uniform Grant Guidance Finding Type: Immaterial noncompliance. Programs: American Recovery Plan Act (ALN #21.027) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written policies pertaining to preparation of the SEFA, allowability of costs charged to federal programs, controlled activities over allowable costs and allowable activities, cash management, financial management, general procurement standards, compensation/payroll, relocation cost of employees, and travel costs (?200.300 - 328)). Condition/Finding: Although the County has processes in place to cover these areas, the County lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023.
Finding 2022-001
2022-001 - Preparation of the Schedule of Expenditures of Federal Awards Finding Type: Material weakness over financial reporting. Programs: American Recovery Plan Act (ALN #21.027) Criteria: The Uniform Guidance, ?200.510, requires that a recipient of federal awards subject to a single audit ?prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements, which must include the total Federal awards expended as determined in accordance with ?200.502.? In addition, the County is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (the "Schedule") in accordance with these guidelines. Condition/Finding: Management provided an initial Schedule of Expenditure of Awards; however, material adjustments were discovered during the audit process. This condition was primarily caused by the extreme infrequency of the County being required to prepare a Schedule of Expenditures of Federal Awards and the corresponding lack of established policies and procedures to produce an accurate Schedule. As a result of this condition, the County is not in compliance with the required written procedures under the Uniform Guidance. Cause: Required federal expenditures where not accurately recorded on the Schedule of Expenditures of Federal Awards. Effect: The schedule of expenditures of federal awards, would have been materially misstated if audit adjustments hadn?t been made. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: The County should develop and implement written procedures over the preparation of the schedule of expenditures of federal awards to be used as a reference for future year(s) subject to single audit reporting.
Finding 2022-002
2022-002 - Written Policies Required by the Uniform Grant Guidance Finding Type: Immaterial noncompliance. Programs: American Recovery Plan Act (ALN #21.027) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written policies pertaining to preparation of the SEFA, allowability of costs charged to federal programs, controlled activities over allowable costs and allowable activities, cash management, financial management, general procurement standards, compensation/payroll, relocation cost of employees, and travel costs (?200.300 - 328)). Condition/Finding: Although the County has processes in place to cover these areas, the County lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023.