FAC Explorer

Finding 380805 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-18
Audit: 295534
Organization: Blue Water Community Action (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance due to lack of independent review of reports.
  • Impacted Requirements: Agency policy requires separate review and approval of reports by the Fiscal Director or Executive Director.
  • Recommended Follow-Up: Management should update procedures to ensure reports are reviewed by someone other than the preparer before submission.

Finding Text

Type: Significant deficiency in internal control over compliance. Criteria: Controls over compliance requirements are to be in place for the Agency. Agency policy states the Fiscal Director or Executive Director are to review and sign reports to the funding sources. Condition: The Fiscal Director both prepared and certified the reports to the funding source and there is no documentation of another individuals’ review or approval over the reports. Context: There was no documentation of review on reports to the funding source. Cause: The Fiscal Director was also the Acting Executive Director for much of the year due to staffing changes. Effect: The preparer and reviewer were the same individual. Recommendation: We recommend management review and update the reporting procedure to ensure reports are reviewed and approved by a separate individual from the preparer prior to submission. View of responsible officials and planned corrective action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Management recognizes the importance of ensuring the accuracy of reports provided to funding sources. The Agency's existing Financial Procedures require either the Finance Director or the Executive Director to review and sign reports submitted to the funding source. Management has implemented a process for the Finance Director to prepare finance reports and to have the Executive Director review, approve, and sign the reports before they are submitted to the funding sources. The Acting Executive Director and/or Program Director will review and sign off on all funding sources reports.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 380804 2023-001
    Significant Deficiency
  • 380806 2023-001
    Significant Deficiency
  • 380807 2023-002
    Significant Deficiency
  • 380808 2023-001
    Significant Deficiency
  • 380809 2023-002
    Significant Deficiency
  • 957246 2023-001
    Significant Deficiency
  • 957247 2023-002
    Significant Deficiency
  • 957248 2023-001
    Significant Deficiency
  • 957249 2023-002
    Significant Deficiency
  • 957250 2023-001
    Significant Deficiency
  • 957251 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $988,084
93.569 Community Services Block Grant $177,647
21.023 Emergency Rental Assistance Program $176,555
14.231 Emergency Solutions Grant Program $158,886
93.568 Low-Income Home Energy Assistance $145,111
21.027 Coronavirus State and Local Fiscal Recovery Funds $89,499
14.169 Housing Counseling Assistance Program $71,522
14.267 Continuum of Care Program $34,192
14.239 Home Investment Partnerships Program $26,564
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $12,500
81.042 Weatherization Assistance for Low-Income Persons $11,660
21.026 Homeowner Assistance Fund $8,100
14.871 Section 8 Housing Choice Vouchers $8,018
10.565 Commodity Supplemental Food Program $6,644
10.558 Child and Adult Care Food Program $5,820
20.509 Formula Grants for Rural Areas and Tribal Transit Program $3,893