March 21, 2025
CORRECTIVE ACTION PLAN
Pursuant to federal regulations under Uniform Administrative Requirements (2 CFR § 200.511), the following finding was noted in Manistee County’s Single Audit report for the year ended September 30, 2025, along with the corresponding corrective actions to be implemented.
Finding: 2024-001 – Child Support Services - Unallowable Costs
Auditor Description of Condition and Effect: During the audit of Manistee County’s Child Support Services federal grant expenditures, it was determined that the County lacked effectively operating controls to ensure that salary and wage expenses charged to the Child Support Services program were allowable and properly allocated. As a result, the County received an overpayment of federal funds of $5,528.41 during FY 2024.
Auditor Recommendation: It is recommended that the County take actions to strengthen internal controls over payroll expenditures related to federal grants to ensure compliance with federal cost principles and proper expense allocation.
Corrective Action: We agree with the finding and will strengthen internal controls over payroll expenditures related to federal grants. We will implement written policies and procedures, provide staff training on federal cost principles, and establish a review process to ensure salary and wage expenses are properly documented and allocated. Additionally, we will work with the grantor agency to resolve the $5,528.41 overpayment.
Responsible Person: Susan Zielinski, Finance Director
Anticipated Completion Date: September 30, 2025