Finding 587247 (2022-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-01-30
Audit: 14452
Organization: City of Muskegon Heights (MI)

AI Summary

  • Core Issue: The City failed to meet reporting requirements for the Coronavirus State and Local Fiscal Recovery Funds, with incomplete or erroneous submissions.
  • Impacted Requirements: Compliance with grant reporting guidance is essential, and the City did not ensure accurate, complete, and timely submissions.
  • Recommended Follow-Up: The City should resolve technical issues with the reporting portal and correct any past errors in submitted reports.

Finding Text

2022-007 – Reporting (Repeat Finding) Finding Type. Material Noncompliance/Material Weakness in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027; Award Numbers GJM5M2C6X6G5 and SLFRP0127. Criteria. The City is required to report the Coronavirus State and Local Fiscal Recovery Funds expenditures following applicable grant reporting guidance. Condition. The City has not performed all of the required Coronavirus State and Local Fiscal Recovery Funds expenditure reporting. Specifically, the Project and Expenditure reports have either not been submitted as required, or material errors were noted in the reports submitted. Cause. This condition was caused by technical issues with the online grant reporting portal, and management not having processes in place to ensure that reports filed were accurate, complete, and filed timely. Effect. As a result of this condition, the City did not comply completely with the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds grant. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted and the reports did not serve as a mechanism for reimbursement. Recommendation. We recommend that the City contact the appliable federal agency to address technical issues with the online grant reporting portal and perform required reporting, making corrections as needed related to any previously filed reports in error. View of Responsible Officials. The City agrees with the audit finding. A corrective action plan has been prepared.

Categories

Allowable Costs / Cost Principles Cash Management Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 10801 2022-006
    Significant Deficiency Repeat
  • 10802 2022-007
    Material Weakness Repeat
  • 10803 2022-008
    Significant Deficiency
  • 10804 2022-006
    Significant Deficiency Repeat
  • 10805 2022-007
    Material Weakness Repeat
  • 10806 2022-008
    Significant Deficiency
  • 587243 2022-006
    Significant Deficiency Repeat
  • 587244 2022-007
    Material Weakness Repeat
  • 587245 2022-008
    Significant Deficiency
  • 587246 2022-006
    Significant Deficiency Repeat
  • 587248 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $400,309
14.218 Community Development Block Grants/entitlement Grants $346,309
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,662
16.738 Edward Byrne Memorial Justice Assistance Grant Program $9,885
95.001 High Intensity Drug Trafficking Areas Program $4,032