Finding Text
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.556, Promoting Safe and Stable Families. Federal Award Identification Number and Year: E20213479-00/E20223931-00 Pass-through Entity – Michigan Department of Health and Human Services Finding Type – Material weakness in internal control over compliance Repeat Finding – No Criteria – Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “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 Organizations of the Treadway Commission (COSO). Condition – During our testing for Activities Allowed-Allowable Cost-Cost Principles, it was noted the client could not provide evidence of approval to charge the grant for 4 out of 13 expenditures selected for testing. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause/Effect – Management could not provide the support for the date requested, due it large part to the change in personnel that previously monitored the federal program. Therefore, requested support for testing could not be provided. Recommendation – We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that reports have proper evidence of review and approval. View of Responsible Officials and Corrective Action Plan –The Organization agrees with this finding and notes that the Organization is revising its internal processes to ensure that each expenditure charged to grants will have as supporting documentation the Check Payment form approved by the Grant Program Director and CEO/Executive Director, or by the CFO, along with the invoice for the expenditure, and explanation of reason for the charge to the specific grant.