Finding 498801 (2023-001)

Assistance Listing, Federal Agency, and Program Name - 93.493, Congressional Directives Federal Award Identification Number and Year - 2023 Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - The Uniform Guidance requires organizations to properly reflect federal expenditures in the schedule of expenditures of federal awards (SEFA), as determined by 2 CFR 200.502. Condition - The total amount of expenditures originally reported on the SEFA excluded $1,024,472 of expenditures related to the Congressional Directives program. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - All of the expenditures that were incurred related to the Congressional Directives program were originally excluded from the SEFA. The adjustment resulted in an additional major program. Although the SEFA was originally incorrect, the SEFA was corrected after this error was noted by the auditor. Cause and Effect - Internal control procedures over determining the correct amount of expenditures to record on the SEFA did not operate effectively. This resulted in an adjustment to the schedule of expenditures of federal awards. Recommendation - Internal control procedures should continue to be enforced to ensure the proper expenditures are reported in the schedule of federal awards. Views of Responsible Officials and Corrective Action Plan - Livingston County, Michigan will implement a review process going forward to ensure all expenses fall within the grant period.