Finding 1223720 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-07-15
Audit: 407235
Organization: Charter Township of Waterford (MI)

AI Summary

  • Core Issue: The Township failed to document compliance with suspension and debarment rules for vendors used in COVID-19 projects.
  • Impacted Requirements: The Township did not follow the Uniform Guidance at 2 CFR 180, which mandates checks through SAM.gov, vendor certifications, or contract clauses.
  • Recommended Follow-Up: Implement and document processes to ensure compliance with vendor reviews and maintain proper documentation.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 21.027, U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP 2640 and N/A, 2024 Pass through Entity - Oakland County, Michigan Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The Township should have controls and processes in place to ensure that they follow the Uniform Guifance at 2 CFR 180, which requires one of the three methods to ensure suspension and debarment rules are met, which are 1) checking SAM.gov, 2) collecting a certification from the vendor, or 3) adding a clause or condition to the contract. Condition - For the year ended December 31, 2025, the Township was unable to provide support that any of the three allowable methods for suspension and debarment were performed on vendors used for the projects. 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 - The Township utilized several vendors to perform work under this program but did not maintain documentation to support that any of the three allowable methods for determining suspension and debarment were performed. Cause and Effect - The Township's processes and internal control structure did not ensure that one of the three allowable methods for ensuring a vendor was not suspended or debarred was being performed and documentation was being maintained. The effect was that no support was provided for vendors selected for testing to show that an allowable method for determining suspension and debarment was performed. Recommendation - We recommend that the Townshp implement and document processes and controls to ensure that reviews for suspension and debarment are being performed and that proper documentation is being kept to show the review of the vendors. Views of Responsible Officials and Planned Corrective Actions - The Township will implement processes and procedures to ensure that reviews for suspension and debarment are being performed and that proper documentation is being kept to show the review of the vendors.

Corrective Action Plan

Condition: For the year ended December 31, 2025, the Township was unable to provide support that any of the three allowable methods for suspension and debarment were performed on vendors used for the projects. Planned Corrective Action: The Township will implement processes and procedures to ensure that reviews for suspension and debarment are being performed and that proper documentation is being kept to show the review of the vendors. Contact person responsible for corrective action: Barbara Miller, Accounting Mgr. Anticipated Completion Date: 9/30/2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1223717 2025-001
    Material Weakness Repeat
  • 1223718 2025-001
    Material Weakness Repeat
  • 1223719 2025-002
    Material Weakness Repeat
  • 1223721 2025-003
    Material Weakness Repeat
  • 1223722 2025-003
    Material Weakness Repeat
  • 1223723 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.922 EQUITABLE SHARING PROGRAM $444,520
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $179,579
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $148,914
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $83,046
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $33,100
20.205 HIGHWAY PLANNING AND CONSTRUCTION $28,647
90.404 HAVA ELECTION SECURITY GRANTS $21,000
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $6,522
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $4,442
97.067 HOMELAND SECURITY GRANT PROGRAM $366