Finding 1080646 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-10-30
Audit: 326681
Organization: Holland Home (MI)

AI Summary

  • Core Issue: The Organization failed to submit a required quarterly narrative report to MDHHS by the deadline, indicating a lack of internal controls.
  • Impacted Requirements: This noncompliance violates 2 CFR 200 and the terms of the grant agreement with MDHHS.
  • Recommended Follow-Up: Implement stronger internal controls and update the review process to ensure timely completion of all reporting requirements.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass through Entity - Michigan Department of Health and Human Services (MDHHS) Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The Organization should have internal controls in place to ensure all reporting requirements in accordance with the uniform grant guidance and terms of the grant agreement with MDHHS are completed timely during the year. Condition - The Organization is required to submit a quarterly narrative report within 30 days following the end of the calendar quarter to the granting agency. The Organization was awarded the grant funds in September 2023 and did not complete the one required narrative reporting requirement due in January 2024. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The Organization did not completed required non financial reporting to the granting agency. The Organization has since contact the granting agency and been in discussion with them regarding reporting requirements during fiscal year 2024. Cause and Effect - The Organization did not have controls in place to ensure this criteria was met. The effect is non compliance with 2 CFR 200 and the grant agreement in place with MDHHS. Recommendation - The Organization should implement additional internal controls to ensure all reporting requirements are completed going forward. Views of Responsible Officials and Planned Corrective Actions - Management will implement an update to its review process in order to ensure all required reporting is completed timely, specifically focused on non financial reporting, and has been in communication with the granting agency related to any missing reports related to the narrative reporting requirement.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 504203 2023-001
    Material Weakness
  • 504204 2023-002
    Material Weakness
  • 1080645 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.23M
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $195,000