Finding 1219173 (2025-002)

Noncompliance with Grant Reporting Frequency Requirements Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Federal program(s) U.S. Department of Treasury - Coronavirus State & Local Fiscal Recovery Funds (ALN 21.027); Amounts passed through the Michigan Department of Environment, Great Lake, and Energy; All project numbers. Criteria. Per the grant agreement for funds received from the Michigan Department of Environment, Great Lake, and Energy ("EGLE") the Township is required to submit financial status reports on a monthly basis, but instead submitted their reports on a quarterly basis. Condition. The Township failed to file financial status reports as required by the Township's grant agreement with EGLE. Cause. This condition was caused by the lack of understanding by program staff of the specific requirements and also by staffing turnover at the Township in key financial positions. Effect. As a result of this condition, the Township did not comply fully with the reporting requirements under this federal award. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend that the Township review its procedures for compiling financial data for external reporting purposes and develop a calendar by which grant managers and Township administration are notified of pending due dates. Financial reports should be supported by general ledger reports (which should be retained internally along with a copy of the report) and subjected to review and approval by an independent employee or administrator prior to submission. View of Responsible Officials. The Township will strive to submit required reports to EGLE on a monthly basis as required. Expectation will be established via the grant calendar for this grant to be established as noted in finding 2025-001.