Finding 1223723 (2025-003)

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

AI Summary

  • Core Issue: The Township submitted financial reports on time, but they were not reviewed before submission, increasing the risk of undetected errors.
  • Impacted Requirements: Compliance with grant requirements under ALN 14.218 and ALN 21.027 mandates that reports be reviewed prior to submission.
  • Recommended Follow-up: Implement and document a review process for all required reports by someone independent of the preparer to enhance internal controls.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants; 21.027, U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - B-24-MC-26-0030 (2024) and B-25-MC-26-0030 (2025); SLFRP 2640 (2024) Pass through Entity - Coronavirus State and Local Fiscal Recovery Funds passed through Oakland County, Michigan Finding Type - Material weakness Repeat Finding - No Criteria - The grants under ALN 14.218 require quarterly financial reports be prepared in a form and format as prescribed by the Compliance Supplement. The Oakland Senior Chore Program requires quarterly financial reports be prepared in a form and format as required under ALN 21.027. Accordingly, the Township should have a process to ensure that all required reports are prepared, reviewed, and submitted timely in accordance with the grant requirements. Condition - For the year ended December 31, 2025, the Township submitted reports timely; however, these reports were not reviewed prior to submission. Questioned Costs - N/A 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 of controls, it was noted that there is no review of any of the reports prior to submission. There were no errors in the reports noted during testing. Cause and Effect - The Township's internal control structure did not require that reports be reviewed prior to submission. Without a secondary review, there is a greater risk of errors not being detected prior to submission of the reports. Recommendation - We recommend the Township implement and document controls to ensure reviews of all required reports are done by an individual independent of the individual preparing the reports. Views of Responsible Officials and Planned Corrective Actions - The Township will implement and document controls to ensure reviews of all required reports are done by an individual independent of the individual preparing the reports.

Corrective Action Plan

Condition: For the year ended December 31, 2025, the Township submitted reports timely, however, these reports were not reviewed prior to submission. Planned Corrective Action: The Township will implement and document controls to ensure reviews of all required reports are done by an individual independent of the individual preparing the reports. Contact person responsible for corrective action: Barbara Miller, Accounting Mgr. Anticipated Completion Date: 9/30/2026

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223717 2025-001
    Material Weakness Repeat
  • 1223718 2025-001
    Material Weakness Repeat
  • 1223719 2025-002
    Material Weakness Repeat
  • 1223720 2025-002
    Material Weakness Repeat
  • 1223721 2025-003
    Material Weakness Repeat
  • 1223722 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