Finding Text
2024-003 - Reporting Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Housing and Urban Development - American Rescue Plan Act - MI Hope Grant (ALN 21.027); Passed through the Michigan State Housing Development Authority; All project numbers. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. During our audit procedures over the City's reporting process, we noted that there were discrepancies in the expenditures that were stated on the reports compared to the schedule of federal expenditures and the underlying accounting records. Cause. This condition is the result of lack of management oversight. Effect. The City followed grant requirements to complete the financial, performance and compliance reporting as required by Treasury, however, the reports were inaccurate. Questioned Costs. No costs were questioned as a result of this finding. Recommendation. We recommend that the City review reports submitted to ensure they are accurate. View of Responsible Officials. The Finance Director will review all financial documents before they are submitted to outside agencies to ensure accuracy. Responsible Official. Director of Finance and Administration Estimated Completion Date. June 30, 2025