FAC Explorer

Finding 1168587 (2025-005)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-01-09
Audit: 380442
Organization: City of Detroit, Michigan (MI)
Auditor: PLANTE & MORAN PLLC

AI Summary

  • Core Issue: The City failed to meet federal payment requirements, making payments to subrecipients more than 30 days after receiving reimbursement requests.
  • Impacted Requirements: Noncompliance with 2 CFR 200.303 and 2 CFR 200.305(b)(3) regarding internal controls and timely payments.
  • Recommended Follow-Up: Implement controls to ensure timely processing of subrecipient payments and regular reviews for compliance with federal requirements.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - ALN 93.914, Department of Health and Human Services (HHS), HIV Relief Project Grants Federal Award Identification Number and Year - 6 H89HA00021 32 01 2024 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303, the recipient must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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. Per 2 CFR 200.305(b)(3), when the reimbursement method is used, the federal agency or pass-through entity must make payment within 30 calendar days after receipt of the payment request, unless the federal agency or pass-through entity reasonably believes the request to be improper. Condition - A lack of effective controls resulted in noncompliance with federal payment requirements, specifically for payments made to subrecipients. Questioned Costs - None 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 over a sample of 40 payments to subrecipients, we noted 3 payments that were made more than the required 30 days after the City received a reimbursement request from the subrecipient. Cause and Effect - A lack of effectively operating controls could result in the untimely disbursement of funds to subrecipients and material noncompliance with federal payment requirements. Recommendation - We recommend that the City design and implement controls to ensure compliance with federal payment requirements, including establishing timelines for processing subrecipient payments and review to ensure adherence to federal payment requirements. Views of Responsible Officials and Planned Corrective Actions - The three payments made were paid 1 to 2 days after the 30 day reimbursement requirement. The City will review its subrecipient payment terms and implement additional processes to help ensure compliance with federal payment requirements.

Corrective Action Plan

Finding Number: 2025-005 Federal Program, Assistance Listing Number and Name: ALN 93.914, Department of Health and Human Services (HHS), HIV Relief Project Grants Condition: Original Finding Description: A lack of effective controls resulted in noncompliance with federal payment requirements, specifically for payments made to subrecipients. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Denise Fair Razo Regina Greear Terri Daniels Anticipated completion date: March 2026 Planned Corrective Action: The three payments made were paid one to two days after the 30 day reimbursement requirement. The City will review its subrecipient payment terms and implement additional processes to help ensure compliance with federal payment requirements.

Categories

Subrecipient Monitoring Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 1168579 2025-003
    Material Weakness Repeat
  • 1168580 2025-003
    Material Weakness Repeat
  • 1168581 2025-003
    Material Weakness Repeat
  • 1168582 2025-003
    Material Weakness Repeat
  • 1168583 2025-004
    Material Weakness Repeat
  • 1168584 2025-004
    Material Weakness Repeat
  • 1168585 2025-004
    Material Weakness Repeat
  • 1168586 2025-004
    Material Weakness Repeat
  • 1168588 2025-006
    Material Weakness Repeat
  • 1168589 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.507 FEDERAL TRANSIT FORMULA GRANTS $11.41M
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $11.09M
14.920 LEAD HAZARD CONTROL FOR HIGH RISK AREAS $3.49M
14.850 PUBLIC HOUSING OPERATING FUND $3.32M
14.218 COVID-19 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $3.09M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $2.16M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.06M
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $1.86M
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B $1.83M
93.391 COVID-19 - ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $1.80M
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $1.33M
21.023 COVID-19 - EMERGENCY RENTAL ASSISTANCE PROGRAM $1.29M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.14M
14.239 COVID-19 - HOME INVESTMENT PARTNERSHIPS PROGRAM $1.00M
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $1.00M
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $899,998
93.778 MEDICAL ASSISTANCE PROGRAM $716,235
20.941 STRENGTHENING MOBILITY AND REVOLUTIONIZING TRANSPORTATION (SMART) GRANTS PROGRAM $670,220
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND OTHER SUBSTANCES USE PROGRAM $640,058
20.205 HIGHWAY PLANNING AND CONSTRUCTION $594,781
93.217 FAMILY PLANNING SERVICES $508,470
20.939 SAFE STREETS AND ROADS FOR ALL $446,469
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $376,620
10.558 CHILD AND ADULT CARE FOOD PROGRAM $343,677
66.039 DIESEL EMISSION REDUCTION ACT (DERA) NATIONAL GRANTS $315,747
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $300,893
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $264,483
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $216,536
97.067 HOMELAND SECURITY GRANT PROGRAM $212,393
66.034 SURVEYS, STUDIES, RESEARCH, INVESTIGATIONS, DEMONSTRATIONS, AND SPECIAL PURPOSE ACTIVITIES RELATING TO THE CLEAN AIR ACT $196,080
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $140,101
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $130,908
16.575 CRIME VICTIM ASSISTANCE $112,095
15.662 GREAT LAKES RESTORATION $97,463
16.817 BYRNE CRIMINAL JUSTICE INNOVATION PROGRAM $89,727
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $79,565
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $78,898
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $74,375
93.361 COVID-19 - NURSING RESEARCH $72,897
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $71,570
16.590 GRANTS TO ENCOURAGE ARREST POLICIES AND ENFORCEMENT OF PROTECTION ORDERS PROGRAM $70,132
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $70,080
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $69,791
93.917 HIV CARE FORMULA GRANTS $59,194
93.268 COVID-19 - IMMUNIZATION COOPERATIVE AGREEMENTS $54,919
15.929 SAVE AMERICA'S TREASURES $53,447
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $51,892
14.231 COVID-19 - EMERGENCY SOLUTIONS GRANT PROGRAM $49,857
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $40,944
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $37,508
20.500 FEDERAL TRANSIT CAPITAL INVESTMENT GRANTS $34,762
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $34,474
16.609 PROJECT SAFE NEIGHBORHOODS $32,469
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $25,088
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $23,690
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $23,058
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $21,942
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $20,650
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $19,154
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $18,685
81.041 STATE ENERGY PROGRAM $17,770
20.106 COVID-19 - AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $14,874
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $14,446
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $14,421
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $13,930
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $11,570
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $10,070
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $9,503
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $7,370
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH $7,000
93.946 COOPERATIVE AGREEMENTS TO SUPPORT STATE-BASED SAFE MOTHERHOOD AND INFANT HEALTH INITIATIVE PROGRAMS $4,305
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $48