FAC Explorer

Finding 512514 (2023-007)

Material Weakness Repeat Finding
Requirement
BL
Questioned Costs
-
Year
2023
Accepted
2024-12-02
Audit: 330302
Organization: County of Delta (MI)
Auditor: Anderson Tackman & Company Plc

AI Summary

  • Core Issue: Delta County lacks written policies to meet the requirements of the Uniform Guidance for managing federal awards.
  • Impacted Requirements: Missing policies on advance payments, allowable costs, compensation, travel costs, and procurement procedures.
  • Recommended Follow-Up: The County should promptly adopt formal written policies to ensure compliance with federal regulations.

Finding Text

Written Policies Required by the Uniform Guidance (repeat) Finding Type: Material Weakness in Internal Controls and Noncompliance (Reporting and Allowable Costs/Cost Principles) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) and Local Assistance and Tribal Consistency Fund (AL #21.032) Criteria: Delta County does not have written policies and procedures to implement the requirements of 2 CFR section 200 for the administration of federal awards. The Uniform Guidance requires a nonfederal entity that has expended federal awards for a grant on or after December 26, 2014 to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. Condition: The County does not have processes in place to conform to all of the requirements in the Uniform Guidance. Cause: The County has not reviewed and updated its policies and procedures for continued changes in grants and the Uniform Guidance. Certain departmental grants operate outside of the general County processes and internal control system and policies and procedures for these departments have not been maintained. Effect: As a result of this condition, the County did not fully comply with the Uniform Guidance. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County adopt formal written policies covering these areas as soon as practical. Views of Responsible Officials: The County will work to update policies and procedures and to formalize responsibilities.

Categories

Allowable Costs / Cost Principles Cash Management Procurement, Suspension & Debarment Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 512510 2023-006
    Material Weakness Repeat
  • 512511 2023-007
    Material Weakness Repeat
  • 512512 2023-008
    Significant Deficiency Repeat
  • 512513 2023-006
    Material Weakness Repeat
  • 1088952 2023-006
    Material Weakness Repeat
  • 1088953 2023-007
    Material Weakness Repeat
  • 1088954 2023-008
    Significant Deficiency Repeat
  • 1088955 2023-006
    Material Weakness Repeat
  • 1088956 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.06M
15.266 Payments in Lieu of Taxes $430,807
21.032 Local Assistance and Tribal Consistency Fund $416,906
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $313,135
10.665 Schools and Roads - Grants to States $150,480
93.563 Child Support Services $55,109
16.738 Edward Byrne Memorial Justice Assistance Grant Program $35,475
97.012 Boating Safety Financial Assistance $16,400
97.042 Emergency Management Performance Grants $16,299
16.922 Equitable Sharing Program $11,851
97.067 Homeland Security Grant Program $7,269
93.658 Foster Care Title IV-E $7,003