FAC Explorer

Finding 401297 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-06-20
Audit: 309349
Organization: County of Crawford, Michigan (MI)
Auditor: Gabridge & CO Plc

AI Summary

  • Core Issue: The County lacks evidence that invoices are reviewed for allowable activities and costs under the grant.
  • Impacted Requirements: Internal control procedures must ensure all costs and activities comply with grant guidelines.
  • Recommended Follow-Up: Revise procedures to provide clear evidence of invoice reviews to mitigate risks of ineligible expenditures.

Finding Text

Internal Control Finding Over Allowable/Unallowable Activities and Costs Finding Type: Material Weakness Programs: Coronavirus State and Local Fiscal Recovery Funds (Assistance listing number 21.027) Criteria: Internal control procedures are required to ensure that the costs and activities are allowable under the grant. The County is required to have evidence that the costs and activities are reviewed and allowable. Condition/Finding: During our testing, all invoices tested did not have evidence they were reviewed to ensure they were for an allowable activity and cost. Cause: This condition is a result of the County not having tangible evidence that invoices are reviewed and in line with the allowable activities and costs of the grant. Effect: As a result of this condition, the County is exposed to an increased risk of having ineligible expenditures. Recommendation: The County should adjust their procedures to ensure there is tangible evidence expenditures are being reviewed to ensure they are in line with grant requirements.

Corrective Action Plan

Auditor Description of Condition and Effect: Internal control procedures are required to ensure that the costs and activities are allowable under the grant. The County is required to have evidence that the costs and activities are reviewed and allowable. During our testing, all invoices tested did not have evidence they were reviewed to ensure they were for an allowable activity and cost. This condition is a result of the County not having tangible evidence that invoices are reviewed and in line with the allowable activities and costs of the grant. As a result of this condition, the County is exposed to an increased risk of having ineligible expenditures. Auditor Recommendation: The County should adjust their procedures to ensure there is tangible evidence expenditures are being reviewed to ensure they are in line with grant requirements. Corrective Action: We agree with the finding and will implement this procedure going forward.

Categories

Allowable Costs / Cost Principles Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 977739 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $614,831
93.563 Child Support Enforcement $285,671
97.067 Homeland Security Grant Program $193,007
10.665 Schools and Roads - Grants to States $70,214
93.658 Foster Care_title IV-E $28,347
93.053 Nutrition Services Incentive Program $23,868
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $19,030
93.778 Medical Assistance Program $15,695
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $10,507
16.607 Bulletproof Vest Partnership Program $8,657
16.034 Coronavirus Emergency Supplemental Funding Program $7,900
93.324 State Health Insurance Assistance Program $7,900
93.052 National Family Caregiver Support, Title Iii, Part E $3,700
97.024 Emergency Food and Shelter National Board Program $2,451
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $1,259
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $250