Finding 1061718 (2024-007)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2024-08-28
Audit: 318038
Organization: Village of Kingsley (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: The Village failed to submit the Project and Expenditure Report on time and with accurate information.
  • Impacted Requirements: Compliance with 31 CFR Section 35, which mandates timely and accurate reporting within 30 days post-reporting period.
  • Recommended Follow-Up: Establish a timeline for report preparation and ensure thorough review to prevent future inaccuracies.

Finding Text

2024-007 Reporting Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Federal Award Number: N/A Federal Award Year: Fiscal year 2024 Pass-Through Entities: Michigan Department of Environment, Great Lakes, and Energy (EGLE) and Grand Traverse County Type of Compliance: Immaterial noncompliance Criteria: Per 31 CFR Section 35 an accurate and complete Project and Expenditure Report is due 30 days after the close of the reporting period. Condition: The Village did not have adequate controls in place to submit the annual Project and Expenditure Report for the reporting period ended March 31, 2024, within 30 days of the close of the reporting period. The Village also did not complete the report accurately, as the contractor was listed as a subrecipient, which is incorrect, and the incorrect project start date was listed on the report. Cause: The previous Village Clerk was the one who has filed the report in the past, who is no longer employed at the Village. The filing deadline did not come to the Village’s attention until close to the reporting deadline, which at the time, the Village did not have the appropriate login information to sam.gov to be able to file the report. The Village also had a misunderstanding of what the definition of a subrecipient was and the incorrect project start date was a typo. Effect: The Village did not submit the annual Project and Expenditure Report timely or accurately. Questioned Costs: None. The report was filed as soon as the Village was able to get accurate login information to sam.gov. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Identification of Repeat Findings: None Recommendations: The Village should build a timeline for preparation and completion of the annual Project and Expenditure Report to ensure timely filing. We also urge the Village to review the report carefully in the future and get a complete understanding of how to file the report to avoid any mistakes in the future. Views of Responsible Officials: The Village is now aware of the reporting deadlines. It was also brought to the attention of the Village the inaccuracies in the report. Now that the Village has the proper login information and understanding of how to accurately complete the annual Project and Expenditure Report, they will ensure it gets filed timely and accurately in the future.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Period of Performance Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.11M
20.205 Highway Planning and Construction $261,970