Finding 37953 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 29620
Organization: Charter Township of Commerce (MI)

AI Summary

  • Core Issue: The Township failed to file required reports for both the Assistance to Firefighters Grant and the COVID-19 Fiscal Recovery Funds.
  • Impacted Requirements: Missing reports include two semiannual financial and performance reports for the firefighters grant and one annual project and expenditure report for the recovery funds.
  • Recommended Follow-up: Implement a tracking system for grant reporting requirements and establish internal controls to ensure timely submission of all necessary reports.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds and 97.044, U.S. Department of Homeland Security, Assistance to Firefighters Grant Award Number - N/A for 21.027 and EMW-2020-FG-13819 for 97.044 Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Grant requirements for Assistance to Firefighters Grant require that recipients submit semiannual financial (SF-425) reports and semiannual performance reports. The grant requirements for Coronavirus State and Local Fiscal Recovery Funds require recipients to file an annual project and expenditure report. Condition - Related to the Assistance to Firefighters Grant, the Township did not file one of the semiannual financial reports, nor did the Township file either semiannual performance report. The Township also did not file the annual project and expenditure report required by the Coronavirus State and Local Fiscal Recovery Funds program. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - The Township did not file three of the four required reports related to the Assistance to Firefighters Grant, nor did the Township file the one report required by the Coronavirus State and Local Fiscal Recovery Funds program. Cause and Effect - The Township did not have an internal control structure that identified and tracked grant reporting requirements. Recommendation - We recommend that controls be implemented to ensure that grant requirements are being reviewed for potential reporting requirements and that a tracking mechanism be put in place to ensure the required reports are completed and filed. Views of Responsible Officials and Corrective Action Plan - The treasurer, finance director, and the department head responsible for the grant will create an internal control process that includes a folder with all grant reporting requirement dates and information, receipts, and disbursements to ensure timely filing of reports is completed.

Corrective Action Plan

Finding Number: 2022-002 Condition: Related to the Assistance to Firefighters Grant, the Township did not file one of the semi-annual financial reports nor did the Township file either semi-annual performance report. The Township also did not file the annual Project and Expenditure Report as required by the Coronavirus State and Local Fiscal Recovery Funds program. Planned Corrective Action: We will have dual controls in place to make sure future interim reporting to any grant agency will be timely and complete. Contact person responsible for corrective action: Molly Phillips and Katelyn Massey, and whatever department head is responsible for the grant. Anticipated Completion Date: December 31, 2023

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 37954 2022-002
    Material Weakness
  • 614395 2022-002
    Material Weakness
  • 614396 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.88M
97.044 Assistance to Firefighters Grant $1.50M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $199,637