Finding 502603 (2024-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2024-10-14
Audit: 324592
Organization: Township of Grosse Ile (MI)
Auditor: Yeo & Yeo PC

AI Summary

  • Answer: There is a significant deficiency in internal controls related to compliance with federal procedures.
  • Trend: This issue indicates a pattern of non-compliance that could lead to further regulatory scrutiny.
  • List: Follow up by reviewing and updating federal compliance procedures to strengthen internal controls.

Finding Text

2024-001 Significant Deficiency in Internal Control over Compliance – Written Federal Procedures See Section III – Federal Award Findings

Corrective Action Plan

On June 8, 2015, the Board of Trustees adopted policies and procedures for federal grant awards which were added to Section 4.11 Annual Audit of the Grosse Ile Township Administrative Policies and Procedures Manual. Due to a clerical oversight, this section was not included in the updated Administrative Policies and Procedures Manual that was adopted on November 14, 2022. The Township has not typically received significant amounts of federal funding in the past. However, written procedures specific to accepting federal awards are required to be documented and updated in accordance with Uniform Guidance, including written procedures for financial management systems, payments, allowable costs, period of performance, matching or cost sharing, program income, procurement, equipment and real property, supplies, copyrights, subawards or debarred and suspended parties, monitoring and reporting program performance, financial reporting, retention and access requirements for records, cash management and payroll or federal time keeping. There have been no instances of noncompliance with federal program requirements, even with the significant increase in federal expenditures during the 2023/2024 fiscal year. Updated written procedures specific to federal awards, in compliance with Uniform Guidance, will be compiled by management and presented to the Board of Trustees for approval and adoption.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 502604 2024-001
    Significant Deficiency
  • 502605 2024-001
    Significant Deficiency
  • 502606 2024-001
    Significant Deficiency
  • 502607 2024-001
    Significant Deficiency
  • 502608 2024-001
    Significant Deficiency
  • 502609 2024-001
    Significant Deficiency
  • 502610 2024-001
    Significant Deficiency
  • 1079045 2024-001
    Significant Deficiency
  • 1079046 2024-001
    Significant Deficiency
  • 1079047 2024-001
    Significant Deficiency
  • 1079048 2024-001
    Significant Deficiency
  • 1079049 2024-001
    Significant Deficiency
  • 1079050 2024-001
    Significant Deficiency
  • 1079051 2024-001
    Significant Deficiency
  • 1079052 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $533,523
16.992 Equitable Sharing Program $357,378
20.106 Airport Improvement Program $250,872
16.753 Congressionally Recommended Awards $39,464
14.218 Community Development Block Grants/entitlement Grants $20,000
15.616 Clean Vessel Act Program $9,269
97.067 Homeland Security Grant Program $5,590