Finding Text
2023-001 – Internal Control Over Financial Reporting
Condition – Mid-Michigan Community Action Agency, Inc.'s financial accounts for the year ended September 30,
2023 were not ready for audit until approximately fall 2024. Once the audit began, there were delays in
obtaining appropriate documentation to complete the audit. Under Uniform Guidance, Mid-Michigan
Community Action Agency, Inc.'s audited financial statements for the year ended September 30, 2023 were due
to the federal single audit clearinghouse by June 30, 2024. Mid-Michigan Community Action Agency, Inc.'s
September 30, 2023 audited financial statements were not completed for submission to the federal audit
clearinghouse until after June 30, 2024.
Criteria – Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “effective control over,
and accountability for, all funds, property, and other assets.” In addition, Uniform Guidance requires audited
financial statements to be submitted to the federal audit clearinghouse within nine-months after an entity’s yearend.
Cause – Mid-Michigan Community Action Agency, Inc. experienced turnover in the Finance Director position two
times in less than two years. Accounts were not reconciled for an extended period of time resulting in significant
delays in closing out fiscal year 2023.
Effect – A material weakness in internal control over financial reporting and internal control over compliance
exists due to the lack of timely reconciliations and resulting late audit submission.
Recommendation – We recommend management and those charged with governance evaluate the operation of
the finance department and implement adequate and timely closing procedures to ensure that financial
statement amounts are being reconciled and adjusted appropriately.
View of Responsible Officials – Management agrees with the assessment and has committed to a corrective
action plan.
Audit finding 2023-001 represents a material weakness in internal control over compliance for Mid-Michigan
Community Action Agency, Inc.'s major federal programs.
Federal Program Information:
Funding agency: US Department of Agriculture, passed through Michigan Department of Education
Title: Food Distribution Cluster
AL numbers: 10.565, 10.568 & 10.569
Award Number: 230930
Funding agency: US Department of Veterans Affairs
Title: Supportive Services for Veterans Families
AL numbers: 64.033
Award Numbers: 2020-MI-222SS, 2020-MI-222, 2020-MI-222HL
Funding agency: US Department of Health and Human Services, passed through Michigan Department of Health
and Human Services
Title: Temporary Assistance for Needy Families
AL number: 93.558
Award Numbers: E20234318-00, E20234318-00
Funding agency: US Department of Health and Human Services, passed through Michigan Department of Health
and Human Services
Title: Community Services Block Grant
AL number: 93.569
Award Numbers: E20230027-00, E20231111-00, E20230467-00, E20234740-00
Questioned Costs – None
Repeat – No