Finding 588704 (2022-004)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-10
Audit: 16522
Organization: Village of Armada (MI)

AI Summary

  • Core Issue: The Village lacks written policies and procedures for internal controls over federal programs.
  • Impacted Requirements: This absence violates the Uniform Guidance, which mandates documented internal controls.
  • Recommended Follow-Up: The Village should create and formalize these policies to ensure compliance and effective oversight.

Finding Text

INTERNAL CONTROLS OVER FEDERAL PROGRAMS - CONDITION: THE VILLAGE DOES NOT HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CRITERIA: THE UNIFORM GUIDANCE REQUIRES AUDITEES TO HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CAUSE: THE VILLAGE DOES NOT ROUTINELY HAVE FEDERAL GRANTS AND HAS NOT FORMALLY DOCUMENTED ITS POLICIES AND PROCEDURES. EFFECT: THE VILLAGE MAY FAIL TO TIMELY DETECT AND CORRECT NONCOMPLIANCE WITHOUT A DOCUMENTED AND COMMUNICATED POLICIES AND PROCEDURE FOR FEDERAL PROGRAMS. RECOMMENDATION: THE VILLAGE SHOULD CONSIDER DOCUMENTING THE CURRENT POLICIES AND PROCEDURES TO FORMALIZE INTERNAL CONTROLS OVER FEDERAL PROGRAMS AND FINANCIAL REPORTING. MANAGEMENT'S RESPONSE: THE VILLAGE HAS BEEN MADE AWARE OF THE REQUIREMENTS AND WILL DEVELOP FORMAL POLICIES AND PROCEDURES OVER FEDERAL PROGRAMS THAT ARE APPROPRIATE FOR THE SIZE OF THE VILLAGE.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12262 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.10M