Finding 1161910 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2025
Accepted
2025-11-05
Audit: 371795
Organization: Township of Standish (MI)

AI Summary

  • Core Issue: The Township drew funds from two sources for the same invoice, violating federal guidelines.
  • Impacted Requirements: This duplication led to questioned costs of $19,575, as costs must not overlap between federally funded programs.
  • Recommended Follow-Up: The Township should designate a responsible individual to oversee draw requests and implement procedures to prevent future duplications.

Finding Text

Duplicate Draws of Expenditures CFDA No. 21.027 - Year ended March 31, 2025 Condition and Criteria: Uniform Guidance (Subpart E, §200.403) requires that costs not be included as a cost of any other federally financed program. During our audit, it was discovered that one invoice was drawn from two separate funding sources. While each grantor has their own internal auditing of payments requested and sent to the Township, the different grantors would not necessarily know if an expenditure was drawn from a different grant than those under their purview. Effect: As a result, the Township drew more funding that expended, resulting in questioned costs as noted below. Cause: The Township relied on their Engineer to identify and duplicated invoices prior to reimbursement request. Context: This was the first year that the Township had multiple funding sources for the same project. The Township needs to implement procedures of their own to ensure invoices are only being drawn from one funding source. Questioned Costs: $19,575 Auditor's Recommendation: We recommend that the Township, in addition to the Engineer's review of draws, implement procedures such as designating an individual within the Township with the responsibility of overseeing the construction draw requests, to ensure from the Township's end, that draw requests are not being duplicated. Views of Responsible Officials and Planned Corrective Actions: The Township understands what happened and will work on developing procedures to prevent such duplication moving forward

Corrective Action Plan

The Township will designate the Township Treasurer with the responsibility of overseeing the construction draw requests, to ensure that the draw requests are not being duplicated across funding sources. The Township will also work with the Engineer to be sure they develop procedures on their end to also ensure draw requests are not being duplicated.

Categories

Questioned Costs Cash Management

Programs in Audit

ALN Program Name Expenditures
66.442 WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION SMALL AND UNDERSERVED COMMUNITIES EMERGING CONTAMINANTS GRANT PROGRAM $961,122
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $707,004
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $367,066
10.760 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $162,016