Finding Text
Department of the Treasury, Passed through the State of Michigan
Federal Financial Assistance Listing 21.029, CPFFN0190, 2024
COVID-19 – Coronavirus Capital Projects Fund
Reporting
Material Weakness in Internal Control over Compliance
Criteria – A good system of internal accounting control contemplates an adequate system for review of the
quarterly submissions.
Condition – During the course of our engagement, we noted that the Cooperative has no formal review process
for the quarterly reports, which could result in a material misstatement of the Cooperative’s schedule of
expenditures of federal awards.
Cause – The Cooperative does not have an internal control system designed to review the quarterly submissions.
Effect – This deficiency could result in a misstatement to the quarterly reports and noncompliance with federal
awards that would not be prevented or detected.
Questioned Costs – None reported.
Context/Sampling – Overall reporting process.
Repeat Finding from Prior Year(s) – No.
Recommendation – We recommend the Cooperative establish a review process prior to submission. This review
should be done at the accounting supervisor levels.
Views of Responsible Officials – There is no disagreement with the audit finding.