Finding 1176454 (2024-004)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-03-04

Audit: 390265

Organization: Every Woman's Place (MI)

Auditor: CLARK SCHAEFER HACKETT

AI Summary

Core Issue: The Organization lacks effective internal controls for timely reporting, violating 2 CFR 200 and MDHHS grant requirements.
Impacted Requirements: Six out of six performance reports for Crime Victim Assistance were submitted late, breaching the 15-day deadline.
Recommended Follow-Up: Implement a robust internal control system to ensure timely report submissions and compliance with grant obligations.

Finding Text

Criteria: 2 CFR 200 requires that internal controls over compliance exist to ensure that the Organization complies with the requirements for reporting of program results. The grant agreement with MDHHS requires quarterly performance reporting to be completed 15 days after each quarter. Condition: The Organization did not have an effective internal control system in place regarding internal controls over compliance for timely reporting. Six of six reports tested were not submitted timely for Crime Victim Assistance. Cause: The Organization did not implement an internal control process over timely reporting. Effect: The lack of internal controls could lead to a misstatement of financial and program reports and resulted in noncompliance. Recommendation: The Organization should implement an internal control system that includes the timely submission of reports. View of Responsible Officials and Planned Corrective Actions

Corrective Action Plan

Every Woman's Place has implemented a formal Monthly FSR reconciliation process to ensure all financial status reports reconcile directly to the general ledger prior ro submission. A standardised FSR reconciliation checklist is completed monthly and includes verification of totals by expense category, review of allocation methodlogy, and confirmation that payroll, fringe benefits, and shared costs agree to support schedules. Each FSR submission now includes: A completed reconciliation checklist, supporting allocation worksheets, a reconciliation log retained with grant files The finance manager completes the reconciliation, and the board treasurer performs a secondary review prior to submission. The process is documented in the fiscal procedures manual and is used conssitently for all MDHHS-funded programs. These process and procedures will ensure timely submissions on all funding sources.

Other Findings in this Audit

1176451 2024-001

Material Weakness Repeat
1176452 2024-002

Material Weakness Repeat
1176453 2024-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
16.575	CRIME VICTIM ASSISTANCE	$695,427
93.558	TEMPORARY ASSISTANCE FOR NEEDY FAMILIES	$330,832
14.267	CONTINUUM OF CARE PROGRAM	$192,242
93.671	FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES	$189,410