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 Reporting compliance, it was noted the client failed to submit monthly reports within the required time frame. None of the 4 samples selected were submitted on time. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause/Effect – Current Management notes that the accounting staff present in 2021, were not completing necessary accounting task in a timely manner, therefore required reports were not submitted on time. . 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 are completed and submitted by the required due dates. 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.