Finding 571979 (2024-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-07-25

Audit: 363071

Organization: County of Calhoun (MI)

Auditor: Rehmann Robson LLC

AI Summary

Core Issue: The County failed to have an independent review and approval process for financial reports, increasing the risk of errors.
Impacted Requirements: Compliance with federal reporting standards under 2 CFR 200, which mandates independent review before submission.
Recommended Follow-Up: Implement procedures for independent review and approval of reports, ensuring proper documentation is maintained.

Finding Text

2024-002 - Lack of Independent Review and Approval of Reporting Finding Type. Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Treasury  COVID-19 - State and Local Fiscal Recovery Fund (CSLFRF) - Virtual Backlog Response Docket Grant (ALN 21.027); Passed through SCAO; SCAO-2023-063/SLFRP0127. 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 County's reporting process, we noted that none of the quarterly program and financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. Cause. This condition is the result of management not recognizing the importance of establishing such controls. Effect. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified. Recommendation. We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. View of Responsible Official. The County’s grant policy #241 requires review and approval of grant financial and programmatic reporting. Management will ensure fiscal and program managers countywide have procedures in place to complete and document these independent reviews. Responsible Official. Assistant County Administrator Estimated Completion Date. December 31, 2025

Corrective Action Plan

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the County's reporting process, we noted that none of the quarterly program and financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the County was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the County establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: The County’s grant policy #241 requires review and approval of grant financial and programmatic reporting. Management will ensure fiscal and program managers countywide have procedures in place to complete and document these independent reviews. Responsible Person: Megan Banning, Assistant County Administrator Anticipated Completion Date: December 31, 2025

Other Findings in this Audit

1148421 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$3.42M
10.557	Wic Special Supplemental Nutrition Program for Women, Infants, and Children	$868,545
16.753	Congressionally Recommended Awards	$868,536
66.818	Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements	$482,709
93.323	Epidemiology and Laboratory Capacity for Infectious Diseases (elc)	$306,843
93.563	Child Support Services	$263,188
93.268	Immunization Cooperative Agreements	$142,242
93.778	Medical Assistance Program	$66,386
93.977	Sexually Transmitted Diseases (std) Prevention and Control Grants	$55,000
93.967	Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health	$49,074
97.039	Hazard Mitigation Grant	$47,690
93.658	Foster Care Title IV-E	$41,181
97.042	Emergency Management Performance Grants	$38,978
93.889	National Bioterrorism Hospital Preparedness Program	$32,131
93.994	Maternal and Child Health Services Block Grant to the States	$30,792
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$30,000
93.217	Family Planning Services	$17,672
93.991	Preventive Health and Health Services Block Grant	$13,714
10.553	School Breakfast Program	$9,025
93.870	Maternal, Infant and Early Childhood Home Visiting Grant	$6,739
93.354	Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response	$6,500
10.555	National School Lunch Program	$4,420
20.600	State and Community Highway Safety	$1,393
93.116	Project Grants and Cooperative Agreements for Tuberculosis Control Programs	$1,260
93.940	Hiv Prevention Activities Health Department Based	$960
97.048	Federal Disaster Assistance to Individuals and Households in Presidential Declared Disaster Areas	$-74,557