Assistance Listing Number, Federal Agency, and Program Name - ALN 21.023, Department of Treasury, COVID-19 Emergency Rental Assistance Program (ERAP) ALN 20.205, Department of Transportation, Highway Planning and Construction Cluster, Highway Planning and Construction (Federal-aid Highway Program) ALN 20.505, Department of Transportation, Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research ALN 93.323, Department of Health and Human Services, COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) ALN 97.036, Department of Homeland Security, COVID-19 Disaster Grants - Public Assistance (Presidentially Declared Disasters) (FEMA) ALN 93.268, Department of Health and Human Services, Total Immunizations Cooperative Agreements ALN 93.145, Department of Health and Human Services, HIV Related Training and Technical Assistance ALN 93.686, Department of Health and Human Services, Ending the HIV Pandemic: A Plan for America - Ryan White HIV/AIDS Program Parts A and B Federal Award Identification Number and Year Various Pass-through Entity - N/A for ALN 21.023, 20.505, 93.145, and 93.686 ALN 20.205 is passed through Michigan Department of Transportation, Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research. ALN 93.323 is passed through Michigan Department of Health and Human Services. ALN 97.036 is directly funded and passed through Michigan Department of Health and Human Services and Michigan State Police. ALN 93.323 is passed through Michigan Department of Health and Human Services. Finding Type - Material weakness Repeat Finding - Yes - 2021-013 Criteria - Per 2 CFR 200.510(b)-The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete, accurate, or prepared timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the City expended approximately $229.7 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. The SEFA included the following inaccuracies: ? ALN 21.023 (ERAP) - The expenditures reported on the SEFA were understated by $1,868,133 related to the June 30, 2022 accrual. ? ALN 20.205 Highway Planning and Construction program - Expenditures of $2,027,058 were improperly included under the Federal Transit Cluster, ALN 20.500, instead of the Highway Planning and Construction Cluster. ? ALN 20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research. - Expenditures of $249,939 was improperly included under the Transit Services Program Cluster, ALN 20.516 and 20.521. ? ALN 93.323 (ELC) and ALN 97.036 (FEMA) - $283,851 spent under ALN 97.036 (FEMA) was improperly reported under ALN 93.323 (ELC). ? ALN 93.268 Immunizations Cooperative Agreements Expenditures of $1,698,773 were improperly excluded from the SEFA. ? ALN 93.145, HIV Related Training and Technical Assistance and ALN 93.686, Ending the HIV Pandemic: A Plan for America - Ryan White HIV/AIDS Program Parts A and B - Expenditures of $240,000 were improperly reported as ALN 93.686 instead of ALN 93.145. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The resulting errors had the following impact: ? ALN 21.023 (ERAP) - The expenditures reported on the SEFA were initially understated by $1,868,133. ? ALN 20.205 Highway Planning and Construction program - Expenditures of $2,027,058 were improperly included under the Federal Transit Cluster instead of the Highway Planning and Construction Cluster resulting in the Highway Planning and Construction Cluster being a Type B program ? ALN 20.505 Metropolitan Transportation Planning and State and Non Metropolitan Planning and Research - Expenditures of $249,939 was improperly included under the Transit Services Program Cluster. ? ALN 93.323 (ELC) and ALN 97.036 (FEMA) - $1,371,758 spent under ALN 97.036 (FEMA) was improperly reported under ALN 93.323, (ELC). The initial understatement of FEMA expenditures impacted major program determination. ? ALN 93.268 Total Immunizations Cooperative Agreements - The expenditures reported on the SEFA were initially understated by $283,851. ? ALN 93.145, HIV Related Training and Technical Assistance and ALN 93.686, Ending the HIV Pandemic: A Plan for America Ryan White HIV/AIDS Program Parts A and B - $240,000 spent under ALN 93.145 were improperly included in ALN 93.686. These errors, noted above, have been corrected on the SEFA as of June 30, 2022. Recommendation - The City should implement process to ensure that the SEFA is prepared timely and that it is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - As part of the City Audit Finding Corrective Action Plan, in FY22, the City developed a SEFA checklist to help ensure all federal expenditures are properly reported. A follow up AFCAP will be implemented and additional processes put in place by management that will provide timelines, a pre SEFA reporting review before the year end close to effectively meet audit report timelines and help ensure completeness, validity, and accuracy in advance of the final SEFA reporting.