Finding 1239402 (2025-003)

2025-003 U.S. Department of the Treasury, Passed through the State of Michigan Federal Financial Assistance Listing 21.029, CV0019120, 2025 COVID-19 – Coronavirus Capital Projects Fund Reporting Material Weakness in Internal Control over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for review of the quarterly submissions. Condition – During the course of our engagement, we noted that the Cooperative has no formal review process for the quarterly reports, which could result in a material misstatement of the Cooperative’s schedule of expenditures of federal awards. Cause – The Cooperative does not have an internal control system designed to review the quarterly submissions. Effect – This deficiency could result in a misstatement to the quarterly reports and noncompliance with federal awards that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – Two out of four quarterly reports were selected for testing. Repeat Finding from Prior Year(s) – Yes. Recommendation – We recommend the Cooperative establish a review process prior to submission. This review should be done at the accounting supervisor levels. Views of Responsible Officials – There is no disagreement with the audit finding.