Finding 1155654 (2025-005)

Material Weakness Repeat Finding
Requirement
CGL
Questioned Costs
-
Year
2025
Accepted
2025-09-26
Audit: 367921
Organization: Charter Township of Redford (MI)

AI Summary

  • Core Issue: The Township lacks effective internal controls over federal awards, leading to incomplete and inaccurate reports and reimbursement requests.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) and internal control standards is not being met, risking noncompliance with federal regulations.
  • Recommended Follow-Up: The Township should enhance its review processes to ensure all reports and reimbursement requests are properly checked before submission.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 97.044, U.S. Department of Homeland Security, Assistance to Firefighters Grant Federal Award Identification Number and Year - N /A Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. These internal controls should be in compliance with the guidance in the "Standards for Internal Control in the Federal Government," issued by the Comptroller General of the United States, or the "Internal Control Integrated Framework," issued by the Committee of Sponsoring Organization of the Treadway Commission (COSO). Condition - The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - During testing of required reporting, as well as reimbursement requests submitted, it was noted that there was no evidence of supervisory reviews prior to submission of these documents. It was also noted there was no review in place over the matching requirment. Cause and Effect - The Township did not have the proper controls in place that lead to lack of appropriate reviews of reporting and requests for reimbursement could have resulted in instances of noncompliance. Recommendation - The Township should review its processes and controls in these areas to ensure that all reporting and reimbursement requests are appropriately reviewed. Views of Responsible Officials and Planned Corrective Actions - The Township agrees with the finding and will work to put controls in place to ensure reviews are performed appropriately.

Corrective Action Plan

Finding Number: 2025-005 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corrective Action: The Township will update the Grant Policy to include a requirement for dual review on all grant reporting. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

Categories

Matching / Level of Effort / Earmarking Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 1155652 2025-004
    Material Weakness Repeat
  • 1155653 2025-004
    Material Weakness Repeat
  • 1155655 2025-006
    Material Weakness Repeat
  • 1155656 2025-006
    Material Weakness Repeat
  • 1155657 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.044 Assistance to Firefighters Grant $1.44M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $1.29M
14.218 Community Development Block Grants/entitlement Grants $1.29M
66.458 Clean Water State Revolving Fund $368,624
16.710 Public Safety Partnership and Community Policing Grants $209,685
16.738 Edward Byrne Memorial Justice Assistance Grant Program $108,551
10.559 Summer Food Service Program for Children $35,713
90.404 Hava Election Security Grants $14,920
16.922 Equitable Sharing Program $11,085
16.607 Bulletproof Vest Partnership Program $3,506
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $1,150