FAC Explorer

Finding 1160625 (2024-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-16
Audit: 370908
Organization: Oakland County, Michigan (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: The County failed to have independent reviews and approvals for financial reports, leading to inaccuracies in the CAPER.
  • Impacted Requirements: Federal guidelines mandate that financial reports must be supported by accounting records and reviewed before submission.
  • Recommended Follow-Up: Implement internal controls for review and approval of financial reports to ensure accuracy and compliance with accounting records.

Finding Text

Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. (Reporting) Federal program(s). U.S. Department of Housing and Urban Development - Community Development Block Grants/Entitlement Grants Cluster; Assistance Listing Number 14.218; Direct award; All project numbers Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Additionally, the PR-26 financial summary reports are submitted as part of the Consolidated Annual Performance Evaluation Report (CAPER). This report should include all expenditures for the program year - including accrued expenditures. Condition. During our audit procedures over the County's PR 29 for CDBG, the CDBG - CV Cash on Hand Quarterly Reports, and the 2023-2024 CAPER, we noted that none of the reports were subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. We also noted that the CAPER was submitted as required, but contained financial data that did not agree to the County's underlying accounting records for the reporting period as required. Cause. The County does not have the internal controls in place to ensure that financial reports are reviewed and approved prior to submission. In addition, the County does not have proper internal controls in place to ensure that the 2023-2024 CAPER agrees to accounting records. Effect. The County submitted inaccurate reporting in its CAPER that was inconsistent with other financial reports submitted and with the County's general ledger. The County is also exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the County's internal controls. Questioned Costs. None. Recommendation. We recommend that the County implement necessary internal controls to ensure that proper review and approval is documented and reports agree to accounting records. Financial information being submitted to outside entities should be reviewed and approved by the Financial Services department to ensure that it is in agreement with the County's general ledger and consistent with other required financial reporting. View of Responsible Officials. The Neighborhood and Housing department will prepare the CAPER in advance of the reporting deadline and provide a copy to the Fiscal Services Supervisor Senior – Grant Accounting each month for review by Fiscal Services. The CAPER will be supported by ledger detail reports to ensure that amounts reported reconcile to Workday. Responsible Official. Chief Financial Officer and Chief, Neighborhood and Housing Development Expected Completion Date. December 2025

Corrective Action Plan

The Neighborhood and Housing department will prepare the CAPER in advance of the reporting deadline and provide a copy to the Fiscal Services Supervisor Senior – Grant Accounting each month for review by Fiscal Services. The CAPER will be supported by ledger detail reports to ensure that amounts reported reconcile to Workday. The Neighborhood and Housing department will prepare the CAPER in advance of the reporting deadline and provide a copy to the Fiscal Services Supervisor Senior – Grant Accounting each month for review by Fiscal Services. The CAPER will be supported by ledger detail reports to ensure that amounts reported reconcile to Workday.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1160616 2024-005
    Material Weakness Repeat
  • 1160617 2024-005
    Material Weakness Repeat
  • 1160618 2024-005
    Material Weakness Repeat
  • 1160619 2024-005
    Material Weakness Repeat
  • 1160620 2024-005
    Material Weakness Repeat
  • 1160621 2024-005
    Material Weakness Repeat
  • 1160622 2024-005
    Material Weakness Repeat
  • 1160623 2024-005
    Material Weakness Repeat
  • 1160624 2024-005
    Material Weakness Repeat
  • 1160626 2024-006
    Material Weakness Repeat
  • 1160627 2024-006
    Material Weakness Repeat
  • 1160628 2024-006
    Material Weakness Repeat
  • 1160629 2024-006
    Material Weakness Repeat
  • 1160630 2024-006
    Material Weakness Repeat
  • 1160631 2024-006
    Material Weakness Repeat
  • 1160632 2024-006
    Material Weakness Repeat
  • 1160633 2024-006
    Material Weakness Repeat
  • 1160634 2024-006
    Material Weakness Repeat
  • 1160635 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $10.46M
66.202 Congressionally Mandated Projects $4.00M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $2.57M
93.563 Child Support Services $1.54M
84.425 Education Stabilization Fund $1.07M
66.468 Drinking Water State Revolving Fund $800,000
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $764,200
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $737,540
93.778 Medical Assistance Program $677,492
16.710 Public Safety Partnership and Community Policing Grants $646,716
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $510,231
17.225 Unemployment Insurance $485,112
16.741 Dna Backlog Reduction Program $427,633
93.940 Hiv Prevention Activities Health Department Based $424,138
16.753 Congressionally Recommended Awards $386,168
93.069 Public Health Emergency Preparedness $299,644
14.231 Emergency Solutions Grant Program $299,441
17.245 Trade Adjustment Assistance $278,098
10.331 Gus Schumacher Nutrition Incentive Program $226,592
15.662 Great Lakes Restoration $207,950
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $201,222
97.012 Boating Safety Financial Assistance $186,579
17.268 H-1b Job Training Grants $185,773
97.042 Emergency Management Performance Grants $180,312
97.067 Homeland Security Grant Program $153,880
17.259 Wioa Youth Activities $147,817
16.582 Crime Victim Assistance/discretionary Grants $138,695
14.239 Home Investment Partnerships Program $130,504
93.575 Child Care and Development Block Grant $104,000
17.258 Wioa Adult Program $92,057
95.001 High Intensity Drug Trafficking Areas Program $87,697
93.493 Congressional Directives $82,842
16.824 Emergency Law Enforcement Assistance Grant $71,618
93.991 Preventive Health and Health Services Block Grant $65,103
17.278 Wioa Dislocated Worker Formula Grants $64,291
11.307 Economic Adjustment Assistance $64,087
16.001 Law Enforcement Assistance Narcotics and Dangerous Drugs Laboratory Analysis $63,247
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $60,705
14.169 Housing Counseling Assistance Program $50,129
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $48,417
17.285 Registered Apprenticeship $42,983
93.658 Foster Care Title IV-E $37,611
20.205 Highway Planning and Construction $36,778
21.027 Coronavirus State and Local Fiscal Recovery Funds $35,020
66.469 Geographic Programs - Great Lakes Restoration Initiative $34,158
10.558 Child and Adult Care Food Program $33,320
93.597 Grants to States for Access and Visitation Programs $33,000
93.268 Immunization Cooperative Agreements $32,300
10.579 Child Nutrition Discretionary Grants Limited Availability $27,648
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $27,381
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $26,690
93.959 Block Grants for Prevention and Treatment of Substance Abuse $26,143
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $21,133
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $19,051
93.558 Temporary Assistance for Needy Families $17,738
97.039 Hazard Mitigation Grant $17,734
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,019
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $15,426
10.553 School Breakfast Program $13,765
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $11,941
14.218 Community Development Block Grants/entitlement Grants $9,158
10.555 National School Lunch Program $5,604
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $5,229
17.801 Jobs for Veterans State Grants $4,190
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $2,965
93.994 Maternal and Child Health Services Block Grant to the States $626
20.616 National Priority Safety Programs $383
93.788 Opioid Str $-2,010
17.207 Employment Service/wagner-Peyser Funded Activities $-11,414