FAC Explorer

Finding 636730 (2022-010)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-01-18
Audit: 49776
Organization: City of Detroit, Michigan (MI)
Auditor: Plante & Moran PLLC

AI Summary

  • Core Issue: The City failed to properly notify City Council about emergency contracts, leading to noncompliance with internal procurement policies.
  • Impacted Requirements: Violations of 2 CFR 200.303(a) and internal policies regarding timely communication and approval of emergency procurements.
  • Recommended Follow-up: The City should review and strengthen its procurement policies to ensure adherence to internal controls and timely notifications.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.507 and 20.526, Department of Transportation, Federal Transit Cluster, including COVID-19 ALN 14.231, Department of Housing and Urban Development, Emergency Solutions Grant Program, including COVID-19 Federal Award Identification Number and Year - ALN 14.231: E19MC260006, E20MC260006, E20MW260006, E21MC260006 ALN 20.507 and 20.526: All awards included on the schedule under the ALNs Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission. The City has written procedures for the use of noncompetitive procurement methods in place, as required by procurement standards within 2 CFR Part 200, Subpart D (Post Federal Award Requirements) and Notice CPD-21-09 issued by the Department of Housing and Urban Development, as well as the Federal Transit Authority Circular 4220.The City?s internal policy requires the Office of Contracting and Procurement (OCP) to notify City Council in writing of basis for the emergency and selection of a particular supplier within one week of procurement and for the OCP to submit the contract for City Council approval within four weeks of procurement. Condition - A contract selected for testing within Emergency Solutions Grant Program that was procured in August 2021 was not communicated to City Council until October 2022. A contract selected for testing within the Federal Transit Cluster that was procured in November 2021 was submitted for City Council approval within the prescribed four weeks; however, OCP did not notify City Council in writing of the basis for the emergency contract within one week of the procurement. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In our sample of one ESG procurements, we noted one instance of noncompliance. In our sample of seven FTC procurements, we noted one instance of noncompliance. Cause and Effect - The City?s controls were not adequate to ensure it followed its internal policy concerning noncompetitive procurements. As a result, there were two instances of noncompliance related to procurement. Recommendation - We recommend the City follow the existing policies and procedures to ensure procurement practices remain in compliance with the City?s internal policies and procedures. Views of Responsible Officials and Planned Corrective Actions - The City will review its current procurement noncompetitive policy to ensure the required review, controls, and checklist are in place to ensure compliance and all policy steps are followed by staff.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 60260 2022-006
    Material Weakness
  • 60261 2022-006
    Material Weakness
  • 60262 2022-006
    Material Weakness
  • 60263 2022-006
    Material Weakness
  • 60264 2022-014
    Material Weakness Repeat
  • 60265 2022-010
    Material Weakness
  • 60266 2022-011
    Material Weakness
  • 60267 2022-010
    Material Weakness
  • 60268 2022-011
    Material Weakness
  • 60269 2022-010
    Material Weakness
  • 60270 2022-011
    Material Weakness
  • 60271 2022-010
    Material Weakness
  • 60272 2022-011
    Material Weakness
  • 60273 2022-007
    Material Weakness Repeat
  • 60274 2022-007
    Material Weakness Repeat
  • 60275 2022-007
    Material Weakness Repeat
  • 60276 2022-007
    Material Weakness Repeat
  • 60277 2022-013
    Material Weakness Repeat
  • 60278 2022-013
    Material Weakness Repeat
  • 60279 2022-013
    Material Weakness Repeat
  • 60280 2022-013
    Material Weakness Repeat
  • 60281 2022-013
    Material Weakness Repeat
  • 60282 2022-010
    Material Weakness
  • 60283 2022-011
    Material Weakness
  • 60284 2022-010
    Material Weakness
  • 60285 2022-011
    Material Weakness
  • 60286 2022-010
    Material Weakness
  • 60287 2022-011
    Material Weakness
  • 60288 2022-010
    Material Weakness
  • 60289 2022-011
    Material Weakness
  • 60290 2022-010
    Material Weakness
  • 60291 2022-011
    Material Weakness
  • 60292 2022-010
    Material Weakness
  • 60293 2022-011
    Material Weakness
  • 60294 2022-010
    Material Weakness
  • 60295 2022-011
    Material Weakness
  • 60296 2022-010
    Material Weakness
  • 60297 2022-011
    Material Weakness
  • 60298 2022-010
    Material Weakness
  • 60299 2022-011
    Material Weakness
  • 60300 2022-010
    Material Weakness
  • 60301 2022-011
    Material Weakness
  • 60302 2022-013
    Material Weakness Repeat
  • 60303 2022-013
    Material Weakness Repeat
  • 60304 2022-012
    Significant Deficiency
  • 60305 2022-012
    Significant Deficiency
  • 60306 2022-012
    Significant Deficiency
  • 60307 2022-012
    Significant Deficiency
  • 60308 2022-012
    Significant Deficiency
  • 60309 2022-012
    Significant Deficiency
  • 60310 2022-012
    Significant Deficiency
  • 60311 2022-012
    Significant Deficiency
  • 60312 2022-012
    Significant Deficiency
  • 60313 2022-012
    Significant Deficiency
  • 60314 2022-012
    Significant Deficiency
  • 60315 2022-012
    Significant Deficiency
  • 60316 2022-012
    Significant Deficiency
  • 60317 2022-012
    Significant Deficiency
  • 60318 2022-012
    Significant Deficiency
  • 60319 2022-013
    Material Weakness Repeat
  • 61369 2022-013
    Material Weakness Repeat
  • 61370 2022-013
    Material Weakness Repeat
  • 61371 2022-013
    Material Weakness Repeat
  • 61372 2022-013
    Material Weakness Repeat
  • 61373 2022-013
    Material Weakness Repeat
  • 61374 2022-013
    Material Weakness Repeat
  • 61375 2022-013
    Material Weakness Repeat
  • 61376 2022-013
    Material Weakness Repeat
  • 61377 2022-013
    Material Weakness Repeat
  • 61378 2022-013
    Material Weakness Repeat
  • 61379 2022-008
    Significant Deficiency
  • 61380 2022-009
    Material Weakness
  • 61381 2022-008
    Significant Deficiency
  • 61382 2022-009
    Material Weakness
  • 61383 2022-013
    Material Weakness Repeat
  • 61384 2022-013
    Material Weakness Repeat
  • 61385 2022-013
    Material Weakness Repeat
  • 61386 2022-013
    Material Weakness Repeat
  • 61387 2022-013
    Material Weakness Repeat
  • 61388 2022-013
    Material Weakness Repeat
  • 61389 2022-013
    Material Weakness Repeat
  • 61390 2022-013
    Material Weakness Repeat
  • 636702 2022-006
    Material Weakness
  • 636703 2022-006
    Material Weakness
  • 636704 2022-006
    Material Weakness
  • 636705 2022-006
    Material Weakness
  • 636706 2022-014
    Material Weakness Repeat
  • 636707 2022-010
    Material Weakness
  • 636708 2022-011
    Material Weakness
  • 636709 2022-010
    Material Weakness
  • 636710 2022-011
    Material Weakness
  • 636711 2022-010
    Material Weakness
  • 636712 2022-011
    Material Weakness
  • 636713 2022-010
    Material Weakness
  • 636714 2022-011
    Material Weakness
  • 636715 2022-007
    Material Weakness Repeat
  • 636716 2022-007
    Material Weakness Repeat
  • 636717 2022-007
    Material Weakness Repeat
  • 636718 2022-007
    Material Weakness Repeat
  • 636719 2022-013
    Material Weakness Repeat
  • 636720 2022-013
    Material Weakness Repeat
  • 636721 2022-013
    Material Weakness Repeat
  • 636722 2022-013
    Material Weakness Repeat
  • 636723 2022-013
    Material Weakness Repeat
  • 636724 2022-010
    Material Weakness
  • 636725 2022-011
    Material Weakness
  • 636726 2022-010
    Material Weakness
  • 636727 2022-011
    Material Weakness
  • 636728 2022-010
    Material Weakness
  • 636729 2022-011
    Material Weakness
  • 636731 2022-011
    Material Weakness
  • 636732 2022-010
    Material Weakness
  • 636733 2022-011
    Material Weakness
  • 636734 2022-010
    Material Weakness
  • 636735 2022-011
    Material Weakness
  • 636736 2022-010
    Material Weakness
  • 636737 2022-011
    Material Weakness
  • 636738 2022-010
    Material Weakness
  • 636739 2022-011
    Material Weakness
  • 636740 2022-010
    Material Weakness
  • 636741 2022-011
    Material Weakness
  • 636742 2022-010
    Material Weakness
  • 636743 2022-011
    Material Weakness
  • 636744 2022-013
    Material Weakness Repeat
  • 636745 2022-013
    Material Weakness Repeat
  • 636746 2022-012
    Significant Deficiency
  • 636747 2022-012
    Significant Deficiency
  • 636748 2022-012
    Significant Deficiency
  • 636749 2022-012
    Significant Deficiency
  • 636750 2022-012
    Significant Deficiency
  • 636751 2022-012
    Significant Deficiency
  • 636752 2022-012
    Significant Deficiency
  • 636753 2022-012
    Significant Deficiency
  • 636754 2022-012
    Significant Deficiency
  • 636755 2022-012
    Significant Deficiency
  • 636756 2022-012
    Significant Deficiency
  • 636757 2022-012
    Significant Deficiency
  • 636758 2022-012
    Significant Deficiency
  • 636759 2022-012
    Significant Deficiency
  • 636760 2022-012
    Significant Deficiency
  • 636761 2022-013
    Material Weakness Repeat
  • 637811 2022-013
    Material Weakness Repeat
  • 637812 2022-013
    Material Weakness Repeat
  • 637813 2022-013
    Material Weakness Repeat
  • 637814 2022-013
    Material Weakness Repeat
  • 637815 2022-013
    Material Weakness Repeat
  • 637816 2022-013
    Material Weakness Repeat
  • 637817 2022-013
    Material Weakness Repeat
  • 637818 2022-013
    Material Weakness Repeat
  • 637819 2022-013
    Material Weakness Repeat
  • 637820 2022-013
    Material Weakness Repeat
  • 637821 2022-008
    Significant Deficiency
  • 637822 2022-009
    Material Weakness
  • 637823 2022-008
    Significant Deficiency
  • 637824 2022-009
    Material Weakness
  • 637825 2022-013
    Material Weakness Repeat
  • 637826 2022-013
    Material Weakness Repeat
  • 637827 2022-013
    Material Weakness Repeat
  • 637828 2022-013
    Material Weakness Repeat
  • 637829 2022-013
    Material Weakness Repeat
  • 637830 2022-013
    Material Weakness Repeat
  • 637831 2022-013
    Material Weakness Repeat
  • 637832 2022-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 - Emergency Rental Assistance Program $23.15M
20.507 Covid-19 - Federal Transit_formula Grants $9.51M
14.231 Covid-19 - Emergency Solutions Grant Program $8.80M
20.507 Federal Transit_formula Grants $6.63M
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3.80M
14.239 Home Investment Partnerships Program $3.29M
20.500 Federal Transit_capital Investment Grants $2.83M
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $2.69M
21.019 Covid-19 - Coronavirus Relief Fund $2.57M
93.914 Hiv Emergency Relief Project Grants $2.37M
14.231 Emergency Solutions Grant Program $2.22M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.39M
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.37M
16.710 Public Safety Partnership and Community Policing Grants $1.19M
14.905 Lead Hazard Reduction Demonstration Grant Program $1.13M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.05M
93.686 Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B (b) $1.00M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $488,994
93.767 Children's Health Insurance Program $468,677
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $443,230
93.268 Immunization Cooperative Agreements $399,842
66.468 Capitalization Grants for Drinking Water State Revolving Funds $326,946
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $323,367
20.205 Highway Planning and Construction $314,304
93.268 Covid-19 - Immunization Cooperative Agreements $283,851
14.218 Community Development Block Grants/entitlement Grants $262,595
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $249,939
93.145 Aids Education and Training Centers $240,000
97.044 Assistance to Firefighters Grant $191,190
97.067 Homeland Security Grant Program $170,632
93.136 Covd-19 - Injury Prevention and Control Research and State and Community Based Programs $154,395
16.838 Comprehensive Opioid Abuse Site-Based Program $152,012
16.738 Edward Byrne Memorial Justice Assistance Grant Program $121,970
93.136 Covid-19 - Injury Prevention and Control Research and State and Community Based Programs $115,862
16.575 Crime Victim Assistance $98,929
16.609 Project Safe Neighborhoods $89,068
14.241 Covid-19 - Housing Opportunities for Persons with Aids $81,743
93.994 Maternal and Child Health Services Block Grant to the States $78,803
20.516 Job Access and Reverse Commute Program $60,651
14.889 Choice Neighborhoods Implementation Grants $60,212
97.042 Emergency Management Performance Grants $48,800
10.559 Covid-19 - Summer Food Service Program for Children $44,594
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $40,621
15.904 Historic Preservation Fund Grants-in-Aid $33,200
93.069 Public Health Emergency Preparedness $31,618
93.778 Medical Assistance Program $29,055
20.600 State and Community Highway Safety $27,238
16.812 Second Chance Act Reentry Initiative $26,911
10.559 Summer Food Service Program for Children $19,957
16.588 Violence Against Women Formula Grants $19,050
97.047 Pre-Disaster Mitigation $16,549
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7,000
16.922 Equitable Sharing Program $6,634
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6,360
20.521 New Freedom Program $2,640
93.217 Family Planning_services $1,849
14.241 Housing Opportunities for Persons with Aids $768
20.616 National Priority Safety Programs $387
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $-70,130