Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 21.027, US Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Pass through Entity - Michigan Department of Health and Human Services (MDHHS)
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - Yes
2023-002
Criteria - The Organization should have internal controls in place to ensure all reporting requirements in accordance with the uniform grant guidance and terms of the grant agreement with MDHHS are completed timely during the year.
Condition - The Organization is required to submit a quarterly narrative report within 30 days following the end of the calendar quarter to the granting agency. The Organization submitted the four required reports for the year, however, three of the four reports were submitted after the required deadline.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - The Organization did not complete required nonfinancial reporting to the granting agency in a timely manner. The Organization has since contacted and been in discussion with the granting agency regarding reporting requirements, and submitted required reporting past the required deadline.
Cause and Effect - The Organization did not have controls in place to ensure this criteria was met. The effect is noncompliance with 2 CFR 200 and the grant agreement in place with MDHHS.
Recommendation - The Organization should implement additional internal controls to ensure all reporting requirements are completed going forward.
Views of Responsible Officials and Planned Corrective Actions - Management will update its review process to ensure all required reporting is completed timely. Management has noted that the nature through which the grant was issued resulted in some confusion regarding time periods and critical reporting requirements related to the grant program.