MACOMB COUNTY, MICHIGAN SINGLE AUDIT ACT COMPLIANCEfinance.macombgov.org/sites/default/files/content/... · 2019. 12. 16. · 5750 New King St., Suite 200 Troy , MI 48098 Ph: 248.952.5000

MACOMB COUNTY, MICHIGAN

SINGLE AUDIT ACT COMPLIANCE

For the Year Ended December 31, 2010

MACOMB COUNTY, MICHIGAN SINGLE AUDIT ACT COMPLIANCE

TABLE OF CONTENTS

YEAR ENDED DECEMBER 31, 2010

Page Single Audit Section Independent Auditors’ Report on Schedule of Expenditures of Federal Awards ............................................................................................................ 1 Schedule of Expenditures of Federal Awards .................................................................... 2-6 Notes to Schedule of Expenditures of Federal Awards ..................................................... 7 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................................................... 8-9 Independent Auditors’ Report on Compliance with Requirements that could have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance With OMB Circular A-133 .............................................................................................. 10-12 Schedule of Findings and Questioned Costs ...................................................................... 13-19 Supplementary Information Substance Abuse Disorder Services Schedules Schedule of Budgeted, Reported, and Audited Amounts ................................................ 20 Schedule of Expenditures and Funding Sources by Program .......................................... 21-22

5750 New King St., Suite 200

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Ph: 248.952.5000

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INDEPENDENT AUDITORS’ REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

September 30, 2011

To the Board of Commissioners of Macomb County Mount Clemens, Michigan We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County, as of and for the year ended December 31, 2010, and have issued our report thereon dated June 30, 2011. Our report includes a reference to other auditors. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Our report includes a reference to other auditors.

MACOMB COUNTY, MICHIGANSchedule of Expenditures of Federal Awards


Catalog ofFederal

DomesticGrantor/Program Title Assistance From To Expenditures

U.S. DEPARTMENT OF AGRICULTUREPassed-through Michigan Department of Community Health -

WIC - Special Supplemental Nutrition for Infants and Children 10.557 10/01/09 09/30/10 1,300,216$ Passed-through Area Agency On Aging 1-B:

ARRA - Home Delivered Meals - USDA - NSIP 10.558 10/01/09 09/30/10 13,051 Home Delivered Meals - USDA 10.558 10/01/09 09/30/10 273,106 ARRA - Congregate Nutrition Program - USDA - NSIP 10.558 10/01/09 09/30/10 24,374 Congregate Nutrition Program - NSIP 10.558 10/01/09 09/30/10 69,217

Passed-through Michigan Department of Education:USDA Commodities - Food Donations (8) 10.555 10/01/09 09/30/10 16,864 National School Breakfast (8) 10.553 10/01/09 09/30/10 56,491 National School Lunch - After School Snack (8) 10.555 10/01/09 09/30/10 16,687 National School Lunch (8) 10.555 10/01/09 09/30/10 87,907 Head Start-Children Meals Program 10.558 10/01/09 09/30/10 382,015 ARRA - TEFAP (9) 10.568 10/01/09 09/30/10 105,419 TEFAP Surplus Food Assistance - Administration (9) 10.568 10/01/09 09/30/10 80,190 TEFAP Surplus Food Asisstance - Commodities (9) 10.569 10/01/09 09/30/10 671,776

Passed-through Michigan Department of Energy, Labor and Econcomic Growth:Food Assistance and Employment Training - Operations 10.561 10/01/09 09/30/10 136,095 Food Assistance and Employment Training - Support Services 10.561 10/01/09 09/30/10 6,597

Total U.S. Department of Agriculture 3,240,005

U.S. DEPARTMENT OF COMMERCEPassed-through the Michigan Department of State Police -

2007 Public Safety Interoperable Communications Grant Project (R2-11) 11.555 10/01/07 06/30/10 79,680

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENTDirect Programs:

Neighborhood Stabilization Program 14.218 01/01/10 12/31/10 3,094,665 Community Development Block Grant (B-08-UC-26-0005) 14.218 01/01/10 12/31/10 1,011,847 Community Development Block Grant - R/Fastrac Initiative (B-09-UY-26-0005) 14.218 01/01/10 12/31/10 80 Community Development Block Grant (B-09-UC-26-0005) 14.218 01/01/10 12/31/10 212,450 HUD Homeless 14.235 01/01/10 12/31/10 23,932 Home Investment Partnership (M-05-UC-26-0209) 14.239 01/01/10 12/31/10 27,687 Home Investment Partnership (M-06-Dc-26-0209) 14.239 01/01/10 12/31/10 43,414 Home Investment Partnership (M-07-Dc-26-0209) 14.239 01/01/10 12/31/10 415,823 Home Investment Partnership (M-08-Dc-26-0209) 14.239 01/01/10 12/31/10 404,928 Homeless Prevention and Rapid Re-Housing (S-09-UY-26-005) 14.257 01/01/10 12/31/10 411,856

Passed-through other than State of Michigan:Housing Inspections 14.218 10/01/09 09/30/10 151,316 CSA Chore Services - Cities 14.219 10/01/09 09/30/10 135,574 Continuum Care 14.219 07/01/09 06/30/10 36,350

Total U.S. Department of Housing and Urban Development 5,969,922

U.S. DEPARTMENT OF JUSTICEDirect Programs:

Community Orientated Policing Technology Program (2008CKWX0491) 16.710 12/26/07 12/25/10 113,592 Community Orientated Policing Technology Program (2008CKWX0492) 16.710 12/26/07 12/25/10 222,710 Community Orientated Policing Technoloty Program (2008CKWX0493) 16.710 12/26/07 12/25/10 131,416 Edward Byrne Memorial Justice Assistance Program (2009-DJ-BX-0167) 16.738 10/01/08 09/30/12 171,259 ARRA - Edward Byrne Memorial Justice Assistance Program (2009-SB-B9-0563) 16.804 10/01/08 09/30/12 609,966

Passed-through the Michigan Department of Human Services -Juvenile Accountability Incentive Block Grant 16.523 04/01/09 03/31/10 35,465

Passed-through the State Department of Community Health:Domestic Violence Victim Advocate 16.575 10/01/09 09/30/10 141,057 Anti-Drug Abuse 16.738 10/01/09 09/30/10 49,920 Street Level Enforcement Team 16.738 10/01/09 09/30/10 74,880

Total U.S. Department of Justice 1,550,265

continued….- 2 -

Federal Agency/Pass-Through Program Period



Catalog ofFederal

DomesticGrantor/Program Title Assistance From To ExpendituresFederal Agency/Pass-Through Program Period

OFFICE OF NATIONAL DRUG CONTROL POLICYPassed-through Michigan Department of State Police -

High Intensity Drug Trafficking Area Program (HIDTA) 07.000 01/01/10 12/31/10 85,768$

U.S. DEPARTMENT OF LABORPassed-through Michigan Department of Energy, Labor and Economic Grownth:

ARRA - Reemploment Services 17.207 01/01/10 12/31/10 493,612 Wagner - Peyser - 7A - Michigan National Career Readiness Cert. 17.207 01/01/10 12/31/10 38,724 Wagner - Peyser - 7A - Employment Services 17.207 01/01/10 12/31/10 1,710,334 ARRA - Reemployment Services - Case Management 17.207 01/01/10 12/31/10 178,305 ARRA - Employment Services MI-NCRC 17.207 01/01/10 12/31/10 214,423 ARRA - Employment Services DPN 17.207 01/01/10 12/31/10 29,984 Trade Adjustment Assistance 17.245 10/01/09 09/30/10 11,756,033 Trade Capacity Builder 17.245 01/01/10 12/31/10 1,500 Workforce Investment Act - Adult (1) 17.258 01/01/10 12/31/10 3,370,818 ARRA - Adult (1) 17.258 01/01/10 12/31/10 1,760,041 ARRA - Local Administration (1) 17.258 01/01/10 12/31/10 81,571 WIA Statewide - One Stop Operation (1) 17.258 01/01/10 12/31/10 29,503 WIA Statewide - Capacity Building (1) 17.258 01/01/10 12/31/10 6,983 WIA - Local Administration (1) 17.258 01/01/10 12/31/10 172,834 WIA Statewide - JET (1) 17.258 01/01/10 12/31/10 95,875 ARRA - Michigan Registered Apprenticship Pilot (1) 17.258 01/01/10 12/31/10 2,910 WIA Statewide Activities - MI - NCRC (1) 17.258 01/01/10 12/31/10 31,761 ARRA - WIA Statewide Additional Adult (1) 17.258 01/01/10 12/31/10 602,702 ARRA - WIA Statewide Activities - Efficiency (1) 17.258 01/01/10 12/31/10 24,097 Workforce Investment Act - Youth (1) 17.259 01/01/10 12/31/10 4,046,381 ARRA - Local Administration (1) 17.259 01/01/10 12/31/10 87,360 WIA Statewide - One Stop Operation (1) 17.259 01/01/10 12/31/10 31,597 WIA Statewide - Capacity Building (1) 17.259 01/01/10 12/31/10 7,478 WIA - Local Administration (1) 17.259 01/01/10 12/31/10 185,101 WIA Statewide - JET (1) 17.259 01/01/10 12/31/10 102,679 ARRA - WIA - Youth (1) 17.259 01/01/10 12/31/10 116,737 ARRA - Michigan Registered Apprenticship Pilot (1) 17.259 01/01/10 12/31/10 3,116 WIA Statewide Activities - MI - NCRC (1) 17.259 01/01/10 12/31/10 34,016 ARRA - WIA Statewide Additional Adult (1) 17.259 01/01/10 12/31/10 645,478 ARRA - WIA Statewide Activities - Efficiency (1) 17.259 01/01/10 12/31/10 25,807 Workforce Investment Act - Dislocated Workers (1) 17.260 01/01/10 12/31/10 2,308,964 ARRA - Local Administration (1) 17.260 01/01/10 12/31/10 111,429 WIA - Incumbent Worker (1) 17.260 01/01/10 12/31/10 103,293 WIA Statewide - Capacity Building (1) 17.260 01/01/10 12/31/10 9,539 WIA - Local Administration (1) 17.260 01/01/10 12/31/10 236,099 WIA Statewide - JET (1) 17.260 01/01/10 12/31/10 114,936 ARRA - Dislocated Worker (1) 17.260 01/01/10 12/31/10 6,409,833 ARRA - WIA DW NEG - SE MI (1) 17.260 01/01/10 12/31/10 3,798,726 ARRA - Michigan Registered Apprenticship Pilot (1) 17.260 01/01/10 12/31/10 3,975 WIA Statewide Activities - MI - NCRC (1) 17.260 01/01/10 12/31/10 43,387 ARRA - WIA Statewide Additional Adult (1) 17.260 01/01/10 12/31/10 823,316 ARRA - WIA Statewide Activities - Efficiency (1) 17.260 01/01/10 12/31/10 32,918 WIA - Disability Navigator 17.266 01/01/10 12/31/10 30,527 ARRA - SESP - Macomb Solar 17.275 01/01/10 12/31/10 7,977 ARRA - WIA - SESP - Macomb Advanced Energy Storage 17.275 01/01/10 12/31/10 86,666 Workforce Investment Act - Dislocated Workers 17.278 01/01/10 12/31/10 233,962 WIA Statewide - One Stop Operation 17.278 01/01/10 12/31/10 40,303 WIA Statewide - JET 17.278 01/01/10 12/31/10 16,033

Passed-through Michigan Office of Services to the Aging:Senior Community Service Employment Program 17.235 01/01/10 12/31/10 895,135 ARRA - Senior Community Service Employment Program 17.235 01/01/10 12/31/10 82,916 Senior Community Service Employment Program 17.235 01/01/10 12/31/10 215,901 Aging Worker Initiative 17.268 01/01/10 12/31/10 229,575

Passed-through Detroit Regional Chamber Inc. -Workforce Innovation in Regional Economic Development 17.261 01/01/10 12/31/10 136,521

Total U.S. Department of Labor 41,859,691

continued….- 3 -



Catalog ofFederal


U.S. DEPARTMENT OF TRANSPORTATIONPassed-through Michigan Department of State Police:

Drive Michigan Safety Task Force (6) 20.600 10/01/09 09/30/10 244,441$ Youth Alcohol Enforcement (6) 20.601 10/01/09 09/30/10 11,596 Hazardous Materials Emerg Preparedness 20.703 10/01/09 09/30/10 5,235

Passed-through Michigan Department of Transportation -Macomb Orchard Trail Phase II & III 20.205 01/01/10 12/31/10 37,476

Passed-through Michigan Department of Energy, Labor and Economic Growth -Road Construction Apprenticeship Readiness 20.205 12/15/09 05/31/11 123,300

Total U.S. Department of Transportation 422,048

U.S. DEPARTMENT OF TREASURYPassed-through Michigan Department of Energy, Labor and Economic Growth:

Forclosure Mitigation 21.021 01/01/10 12/31/10 13,750 MSHDA 3 21.021 01/01/10 12/31/10 105,679

Total U.S. Department of Treasury 119,429

U.S. SMALL BUSINESS CENTERDirect Programs:

SBA Incubator 59.000 08/01/08 07/31/10 123,757 SBA Incubator II 59.000 08/01/08 07/31/10 121,674 Small Business Tech & Develop Center 59.037 01/01/10 12/31/10 200,000

Total U.S. Small Business Center 445,431

U.S. ENVIRONMENTAL PROTECTION AGENCYDirect Programs:

EPA Assess Brownfield - Petroleum (BF00E82401-0) 66.818 02/01/09 01/31/12 51,365 EPA Assess Brownfield - Hazardous (BF0082501-0) 66.818 02/01/09 01/31/12 76,365

Passed-through Michigan Department of Environmental Quality:Beach Monitoring And Notification 66.427 10/01/09 09/30/10 5,064.00 Capitalization Grants for Clean Water State Revolving Funds - Loan #530601 66.458 10/01/09 09/30/10 11,792 ARRA - Capitalization Grants for Clean Water State Revolving Funds - Loan #539301 66.458 10/01/09 09/30/10 882,000 Nonpoint Source Implementation Grants 66.460 10/01/09 09/30/10 29,807 Noncommunity Water - Operator Certification 66.471 10/01/09 09/30/10 1,750

Passed-through Michigan Department of Agriculture -Clean Sweep Pesticide Collection Program 66.605 10/01/09 09/30/10 5,158

Total U.S. Environmental Protection Agency 1,063,301

U. S. DEPARTMENT OF ENERGYDirect Program -

Energy Efficiency and Conservation Block Grant 81.128 09/08/09 09/07/12 10,812 Passed-through Michigan Department of Human Services:

Weatherization 81.042 04/01/09 03/31/10 592,881 ARRA - Weatherization 81.042 04/01/09 03/31/12 2,573,936

Total U.S. Department of Energy 3,177,629

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICESDirect Programs:

Pool Inspections 93.136 01/01/10 12/31/10 46,725 Head Start (5) 93.600 09/01/09 08/31/10 5,325,451 ARRA - Head Start (5) 93.708 07/01/09 09/30/10 97,744 ARRA - Head Start Quality (5) 93.708 07/01/09 09/30/10 318,215 ARRA - Early Head Start - 2009 Expansion (5) 93.709 12/01/09 09/29/11 670,785

Passed-through Area Agency On Aging 1-B:Senior Citizen Chore Services (2) 93.044 10/01/09 09/30/10 83,998 Title III Outreach/Resource Advocacy (2) 93.044 10/01/09 09/30/10 81,900 Legal Assistance (2) 93.044 10/01/09 09/30/10 38,309 Home Injury Control (2) 93.044 10/01/09 09/30/10 23,577 Congregate Nutrition Programs (2) 93.045 10/01/09 09/30/10 452,635 Home Delivered Meals (2) 93.045 10/01/09 09/30/10 691,245 ARRA - Home Delivered Meals (2) 93.705 10/01/09 09/30/10 63,303 ARRA - Congregate Nutrition Programs (2) 93.707 10/01/09 09/30/10 128,854

continued….- 4 -



Catalog ofFederal


U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (continued)Passed-through Michigan Department of Community Health:

Bioterrorism - Focus A Program #1590 93.069 10/01/09 09/30/10 337,920$ Bioterrorism - Pandemic Flu Planning #1589 93.069 10/01/09 09/30/10 535,055 Imunization Grants - H1N1 93.069 10/01/09 09/30/10 476,284 Bioterrorism - EWIDS 93.069 10/01/09 07/31/10 3,685 Pandemic Flu H1N1 Focus Area 3 Program #1586 93.069 10/01/09 07/31/10 651,692 Cities Readiness Initiative 93.069 10/01/09 09/30/10 175,456 Tb Control, Directly Observed Therapy 93.116 10/01/09 09/30/10 28,500 Miturn Homeless Project 93.150 10/01/09 09/30/10 58,289 Macomb Homeless Project - (PATH) 93.150 10/01/09 09/30/10 28,591 Family Planning - General Services 93.217 10/01/09 09/30/10 175,108 Holding on to Life 93.243 10/01/09 09/30/10 27,000 Immunizations - IAP (3) 93.268 10/01/09 09/30/10 317,359 Immunizations - AFIX (3) 93.268 10/01/09 09/30/10 50 VFC/AFIX - Provider Site Visits (3) 93.268 10/01/09 09/30/10 19,200 Immunization - Nurse Training (3) 93.268 10/01/09 09/30/10 4,150 Imunization Grants - VFC/317 (3) 93.268 10/01/09 09/30/10 1,881,052 VFC - Provider Site Visits (3) 93.268 10/01/09 09/30/10 2,100 Infant Toddler Mental Health 93.575 10/01/09 09/30/10 65,596 ARRA - Immunizations - Reaching Children & Adults (3) 93.712 10/01/09 09/30/10 74,600 ARRA - Imunization Grants (3) 93.712 10/01/09 09/30/10 350,387 Mi Child 93.767 10/01/09 09/30/10 238,844 Mi Child - Substance Abuse 93.767 10/01/09 09/30/10 15,302 Adult Benefits Waiver 93.767 10/01/09 09/30/10 82,053 Medicaid Outreach Activities Reimbursement 93.778 10/01/09 09/30/10 64,007 OBRA Assessment 93.778 10/01/09 09/30/10 344,877 CSHCS Care Coordination - Case Management 93.778 10/01/09 09/30/10 6,148 Adult Benefits Waiver - Medicaid 93.778 10/01/09 09/30/10 305,355 CSHCS Outreach Advocacy 93.778 10/01/09 09/30/10 65,650 AIDS / HIV Prevention 93.940 10/01/09 09/30/10 163,578 Alcohol/Drug Abuse Mental Health Block Grant 93.959 10/01/09 09/30/10 2,906,178 Sids Autopsies 93.993 10/01/09 09/30/10 3,200 SIDS Counseling 93.994 10/01/09 09/30/10 510 Local Mch Program - Family Planning 93.994 10/01/09 09/30/10 189,488 Fetal Infant Mortality Review 93.994 10/01/09 09/30/10 4,320 CSHCS Outreach Advocacy Reg 93.994 10/01/09 09/30/10 61,555

Passed-through Michigan Deparment of Human Services:Cooperative Reimbursement Program-Incentive 93.563 10/01/09 09/30/10 990,445 Prosecuting Atty-Child Support Enforcement 93.563 10/01/09 09/30/10 650,931 Freind Of The Court - IV D Program 93.563 10/01/09 09/30/10 5,414,954 LIHEAP-LCA Deliverable Fuels 93.568 02/01/09 09/30/10 13,275 LIHEAP 93.568 05/24/09 09/30/10 369,000 CAA Administration (4) 93.569 10/01/09 09/30/10 71,422 General Community Programming (4) 93.569 10/01/09 09/30/10 577,814 CSBG - Dicretionary EITC (4) 93.569 10/01/09 09/30/10 24,000 Community Coordinated Child Care 93.575 10/01/09 09/30/10 4,997 ARRA - CSBG (4) 93.710 10/01/09 09/30/10 1,375,289

Passed-through Michigan Department of Energy, Labor and Economic Growth:Workfirst TANF - Jobs Education and Training 93.558 10/01/09 09/30/10 3,997,625 Workfirst TANF - JET - Supportive Services 93.558 10/01/09 09/30/10 30,000

Passed-through Michigan Court Administrative Office -Access And Visitation Grant 93.597 10/01/09 09/30/10 23,085

Passed-through National Mentoring Partnership -Caregiver's Choice 93.616 10/01/09 09/30/10 1,200

Total U.S. Department of Health and Human Services 31,229,917

continued…

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Catalog ofFederal


U.S. DEPARTMENT OF HOMELAND SECURITYPassed-through Michigan Department of State Police:

Emergency Management Performance Grant 97.042 10/01/09 09/30/10 33,506$ 2009 Homeland Security Grant UASI 97.067 08/01/09 04/30/12 10,021 2006 Homeland Security Grant 97.067 07/01/06 03/31/10 22,628 2007 Homeland Security Grant HSGP 97.067 07/01/07 03/31/11 410,578 2007 Homeland Security Grant LETPP 97.067 07/01/07 03/31/11 284,026 2007 Homeland Security Grant UASI 97.067 07/01/07 03/31/10 670,733 2007 Citizen Corps. Program 97.067 10/01/09 03/31/10 20,605 2008 Homeland Security Grant - UASI 96.067 09/01/08 05/31/11 20,196 2008 Operation Stone Garden 97.067 10/01/08 06/30/10 62,381

Passed-through United Way:Emergency Food & Shelter (7) 97.024 01/01/10 12/31/10 352,836 ARRA - Emergency Food & Shelter (7) 97.114 01/01/10 12/31/10 254,279

Total U.S. Department Of Homeland Security 2,141,789

TOTAL EXPENDITURES OF FEDERAL AWARDS 91,384,875$

Program Clusters:

(1) WIA Cluster(2) Aging Cluster(3) Immunization Cluster(4) CSBG Cluster (5) Head Start Cluster (6) Highway Safety Cluster(7) Emergency Food and Shelter Program Cluster(8) Child Nutrition Cluster(9) Emergency Food Assistance Cluster

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NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant

activity of Macomb County, Michigan (the “County”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

2. SUBRECIPIENTS

Of the federal expenditures presented in the schedule, the County provided federal awards to subrecipients as follows:

Program TitleCFDA

Number Amount Provided to Subrecipients

Food Assistance & Employment Training 10.561 128,037$ Community Development Block Grant 14.218 1,145,451 ARRA Justice Assistance Grant 16.804 561,808 Wagner Peyser 7(a) Employment Services 17.207 2,192,890 Senior Title V 17.235 244,364 Trade Adjustment Assistance 17.245 1,779,714 Workforce Investment Act - Adult 17.258 2,118,211 Workforce Investment Act - Youth 17.259 3,173,311 Workforce Investment Act - Dislocated Workers 17.260 4,740,615 ARRA - WIA - SESP - Macomb Advanced Energy Storage 17.275 37,016 WIA Statewide - One Stop Operation 17.278 2,400 Workfirst TANF - Jobs Education and Training 93.558 1,485,219 Substance Abuse Block Grant 93.959 2,906,178

* * * * *


Troy, MI 48098

Ph: 248.952.5000

Fx: 248.952.5750

www.rehmann.com

- 8 -

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

June 30, 2011

To the Board of Commissioners of Macomb County Mount Clemens, Michigan We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Macomb County (the “County”), as of and for the year ended December 31, 2010, which collectively comprise the County’s financial statements, and have issued our report thereon dated June 30, 2011. We did not audit the financial statements of the Macomb County Road Commission, which represents 58.5% of the assets and 29.3% of the revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports were furnished to us, and our opinions, insofar as they relate to the amounts included for the Macomb County Road Commission, are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting

In planning and performing our audit, we considered the County’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness.

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A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2010-1 to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the County in a separate letter dated June 30, 2011. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s responses and, accordingly, we express no opinion on the responses. This report is intended solely for the information and use of management, the Board of Commissioners, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.


Troy, MI 48098

Ph: 248.952.5000

Fx: 248.952.5750

www.rehmann.com

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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH

REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL

EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

September 30, 2011

To the Board of Commissioners of Macomb County Mount Clemens, Michigan Compliance

We have audited the compliance of Macomb County (the “County”) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2010. The County’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the County’s management. Our responsibility is to express an opinion on the County’s compliance based on our audit. The County’s basic financial statements include the operations of the Macomb County Road Commission, which expended $1,656,839 in federal awards, which is not included in the schedule of expenditures of federal awards for the year ended December 31, 2010. Our audit, described below, did not include the operations of the Macomb County Road Commission because an audit in accordance with OMB Circular A-133 for those activities was performed by other auditors and a separate report was issued. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government

Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County’s compliance with those requirements.

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In our opinion, Macomb County complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2010. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2010-2, 2010-3 and 2010-4. Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the County’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies as described in the accompanying schedule of findings and questioned costs as items 2010-3 and 2010-4. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe that a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s responses and, accordingly, we express no opinion on the responses.

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This report is intended solely for the information and use of management, the Board of Commissioners, others within the entity, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED DECEMBER 31, 2010 _________________________________________________________________________________

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SECTION I – SUMMARY OF AUDITORS’ RESULTS

Financial Statements

Type of auditors’ report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? X yes no Significant deficiency(ies) identified? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal Control over major programs: Material weakness(es) identified? yes X no Significant deficiency(ies) identified? X yes none reported Type of auditors’ report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section 510(a)? X yes no




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SECTION I – SUMMARY OF AUDITORS’ RESULTS (CONCLUDED)

Identification of Major Programs CDFA Numbers Name of Federal Program or Cluster

16.804 ARRA - Edward Byrne Memorial JAG17.245 Trade Adjustment Assistance17.258, 17.259 & 17.260 WIA Adult, Youth & Disclocated Workers81.042 Weatherization Assistance for Low-Income

Persons93.569 & 93.710 Community Services Block Grant Cluster93.560, 93.708 & 93.709 Head Start Cluster

Dollar threshold used to distinquishbetween Type A and Type B programs:

Auditee qualified as low-risk auditee: yes X no

$2,741,546

SECTION II – FINANCIAL STATEMENT FINDINGS 2010-1 Material Audit Adjustments Finding type: Material weakness in internal controls over financial reporting.

Criteria: Management is responsible for maintaining its accounting records in

accordance with generally accepted accounting principles (“GAAP”).

Condition/Finding: During our audit, we identified and proposed adjustments (which were approved and posted by management) that were material, either individually or in the aggregate, to the County’s financial statements.

Cause: Internal controls did not detect certain adjustments necessary to properly

record year-end balances.




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2010-1 Material Audit Adjustments (continued) Effect: As a result the following areas were initially misstated:

• The transfer out of the revenue sharing reserve fund and the transfer into the general fund were both overstated by approximately $531,000.

• Accounts payable was understated in the delinquent tax revolving enterprise fund by approximately $219,000.

• Bonds payable and bond issuance costs were both overstated by approximately $1,485,000 in the drain district component unit.

• Other assets was understated by approximately $758,000 in the drain district component unit.

• Beginning fund balance was overstated and accounts payable was understated in the other special revenue nonmajor special revenue fund by approximately $1,175,000.

• Beginning fund balance and interest expense were both understated in the drainage district component unit by approximately $984,000.

• Activity shown in the financial statements for one of the federal grants included on the Schedule of Expenditures of Federal Awards was for the incorrect period. An adjustment was needed to adjust the activity for this grant so that the proper months of activity were reflected in the financial statements and on the Schedule of Expenditures of Federal Awards.

Recommendation/ Comment:

We recommend that the County take steps to ensure that all year-end adjustments are identified and posted for financial reporting purposes and that the proper months of activity are reflected in the financial statements and on the Schedule of Expenditures of Federal Awards.

View of Responsible Officials:

Procedures have either already been or will be instituted to ensure that the items noted above are addressed properly going forward.




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SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2010-2 Separate Trust Fund (repeat finding) Finding type:

Immaterial Noncompliance – Cash Management

Federal program(s):

Recovery Act - Edward Byrne Memorial Justice Assistance Grant (“JAG”) program; CFDA# 16.804; received directly from the U.S. Department of Justice; program 2009-SB-B9-0563.

Criteria: According to the grant agreement, “The recipient is required to establish a trust fund account. The trust fund may or may not be an interest-bearing account. The funds, including any interest earned, may not be used to pay debts or expenses incurred by other activities beyond the scope of either the Edward Byrne Memorial JAG program or the Recovery JAG Program.”

Condition/Finding: Management did not establish a trust fund account to deposit Recovery Act - JAG funds prior to expending them.

Cause: Management decided not to implement this specific grant requirement.

Effect: The County did not comply with the above grant requirement.


We recommend that the County establish the trust fund or obtain a waiver of this requirement directly from the grantor.


Complying with this recommendation would require establishing a separate bank account, which would result in more work on behalf of the Finance Department and Treasurer’s Office, as well as additional bank fees. Management of the Finance Department interprets the spirit of the requirement to be that the accounting for the revenues and expenditures of this grant not be comingled in the general ledger with those of other grant programs. The activities for this program are accounted for in a separate and distinct cost center in the general ledger. Therefore, management of the Finance Department believes that the spirit of the requirement has been met.




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2010-3 Monthly Reports

Finding type:

Noncompliance - Reporting; Significant deficiency in internal controls over compliance.

Federal program(s):

Workforce Investment Act (WIA); CFDA# 17.258, 17.259 and 17.260; passed through the Michigan Department of Energy, Labor and Economic Growth from the U.S. Department of Labor.

Criteria:

The U.S. Department of Labor requires that monthly reports summarizing expenditures be filed each month.

Condition/Finding: Monthly expenditure reports did not agree to the total amount of expenditures as reported on the Schedule of Expenditures of Federal Awards or to the amounts recorded in the general ledger. No costs were questioned as a result of this, since the County is reimbursed based on amounts reported on its cash requests, not on the monthly expenditure reports. The cash requests did reconcile to both the Schedule of Federal Awards and the amounts in the general ledger.

Cause: This condition appears to be the result of a lack of controls over this reporting requirement.

Effect: This condition increases the risk that the monthly expenditure reports submitted do not reflect the correct amount of expenditures for the period.


We recommend that the County implement procedures necessary to ensure that actual expenditures are being reported on these monthly expenditure reports and agree to, or can be reconciled to the general ledger.


The Finance Department will work closely with the department responsible for filing the monthly reports for this program to ensure that the amounts reported on the monthly expenditure reports reconcile with the amounts recorded in the general ledger.




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2010-4 Subrecipient Monitoring

Finding type:

Noncompliance – Subrecipient Monitoring; Significant deficiency in internal controls over compliance.

Federal program(s):

Recovery Act - Edward Byrne Memorial Justice Assistance Grant (“JAG”) program; CFDA# 16.804; received directly from the U.S. Department of Justice; program 2009-SB-B9-0563.

Criteria: Office of Management and Budget Circular No. A-133, Audits of States, Local Governments and Non-Profit Organization, states that a pass-through entity is responsible for (1) ensuring that subrecipients expending $500,000 or more in Federal awards during the subrecipient’s fiscal year have met the audit requirements of OMB Circular A-13 and that the required audits are completed within 9 months of the end of the subrecipient’s audit period; (2) issuing a management decision on audit findings within 6 months after receipts of the subrecipient’s audit report; and (3) ensuring that the subrecipient takes timely and appropriate corrective action on all audit findings.

Condition/Finding: While the subrecipients had the required audits completed, the County did not obtain the most recent single audit report for three subrecipients. No costs were questioned as a result of this, since it was determined that the County was performing some monitoring over these subrecipients, but failed to obtain the required reports.

Cause: This condition appears to be the result of a lack of controls over this requirement.

Effect: This condition increases the risk that the County’s subrecipients are not following the requirements set forth in OMB Circular A-133.


The County should implement procedures to obtain Single Audit reports from subrecipients in a timely manner.


The Finance Department will more closely examine vendor payment histories to more accurately identify subrecipient payments.




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SECTION IV – PRIOR YEAR FEDERAL AWARD FINDINGS 2009-1 Material Audit Adjustments Issue was adequately resolved 2009-2 Preparation of the Schedule of Federal Expenditures of Federal Awards Issue was adequately resolved 2009-3 Separate Trust Fund Finding was repeated as finding 2010-2

* * * * *

SUPPLEMENTARY INFORMATION

Reported VarianceBudgeted Expenditures Audited (Audited- Local Match

Fund Source (FINAL) (FINAL RER) Expenditures Reorted) Funds

A State Agreement1 Community Grant 3,625,190$ 3,568,306$ 3,568,306$ -$ 2 SDA 31,326 31,200 31,200 - 3 SIG 159,837 159,059 159,059 - 4 Methamphetamine - - - - 5 Other (more lines can be added as needed) - - - - A Subtotal 3,816,353 3,758,565 3,758,565 - B Medicaid1 Current Year PEPM (Federal & State) 3,359,434 2,284,554 2,284,554 - 2 Federal share only for Women's Specialty - - - - 3 State share only for Women's Specialty - - - - 4 Reinvestment Savings - - - - B Subtotal 3,359,434 2,284,554 2,284,554 - C Adult Benefit Waiver (ABW) Oct - Apr - 1 Current Year PEPM (federal share only) 188,700 142,538 142,538 - C Subtotal 188,700 142,538 142,538 -

C1 Adult Benefit Waiver (ABW) May - Sept - 1 Current Year PEPM (federal and state share) 134,797 130,053 130,053 -

C1 Subtotal 134,797 130,053 130,053 - D MI CHILD1 Current Year PEPM (federal share only) 15,254 100 100 - D Subtotal 15,254 100 100 - E Local1 Current Year PA2 1,010,000 45,219 45,219 - 45,219$ 2 PA2 Fund Balance - 639,564 639,564 - 639,564 3 Other Local (R325.4152 excluding subsection (1)(b)) 315,698 305,150 305,150 - 305,150 E Subtotal 1,325,698 989,933 989,933 - 989,933 F Fees & Collections- Subtotal (R325.4151 (1)(d)) 350,530 489,385 489,385 - 489,385 G Other Contracts & Sources (Subtotal) - - - - -

Grand Total of Subtotals A-G 9,190,766$ 7,795,128$ 7,795,128$ -$ 1,479,318$

Amount Billable to MDCH (Section A audited subtotal) 3,758,565$ Total MDCH Payments 3,832,827

(Overpayment)/Underpayment (74,262)$

Local Match Funds Total 1,479,318$ Local Match Requirement [(Grand Total of Audited Exp. minus subtotal B, C, D & G) * 10%] 523,788

Local Match (Shortfall)/Excess 955,530$

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MACOMB COUNTY COMMUNITY MENTAL HEALTH SERVICES - OFFICE OF SUBSTANCE ABUSESubstance Abuse Prevention & Treatment

Schedule A - Summary of Budgeted, Reported, and Audited AmountsFor the Year Ended September 30, 2010

MACOMB COUNTY COMMUNITY MENTAL HEALTH SERVICES - OFFICE OF SUBSTANCE ABUSESubstance Abuse Prevention & Tratment

Schedule B -- Schedule of Expenditures and Funding Sources by ProgramYear Ended September 30, 2010

ProgramBudgeted(FINAL)

ReportedExpenditures(FINAL RER)

GrossAmount

LessMedicaid

LessABW from

PIHPsLessFees

NetAmount

Administration 1,249,598$ 1,174,483$ 1,174,483$ 320,801$ -$ 2,280$ 851,402$

Prevention 947,612 881,307 881,307 - - 77,480 803,827

Treatment 5,626,913 4,438,570 4,438,570 1,887,748 - 385,962 2,164,860

Women's Specialty 50,000 142,296 142,296 76,006 - 780 65,510

Communicable Disease 9,000 8,921 8,921 - - - 8,921

SPF/SIG 159,837 159,058 159,058 - - - 159,058

ABW (State and Federal Funds) 447,719 287,956 287,956 - - - 287,956

MIChild (State and Federal Funds) 20,566 134 134 - - - 134

Other - Sacred Heart State Wide 679,521 702,404 702,404 - - 22,883 679,521

Totals 9,190,766$ 7,795,129$ 7,795,129$ 2,284,555$ -$ 489,385$ 5,021,189$

Reconciliation of PA2 Funds:

Beginning Balance 639,564$ Current Year PA2 1,042,352 Expenditures (684,783) Ending balance 997,133$

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Audited Expenditures

Audited Funding Sources

StateAgreement SDA PA2

OtherLocal

OtherSources

ABW(federal)

MIChild(federal)

TotalFunding

Variance(Audited-Reported)

730,957$ -$ -$ 85,040$ -$ 35,405$ -$ 851,402$ -$

777,227 - 10,800 15,800 - - - 803,827 -

1,255,367 31,200 673,983 204,310 - - - 2,164,860 -

65,510 - - - - - - 65,510 -

8,921 - - - - - - 8,921 -

159,058 - - - - - - 159,058 -

50,770 - - - - 237,186 - 287,956 -

34 - - - - - 100 134 -

679,521 - - - - - - 679,521 -

3,727,365$ 31,200$ 684,783$ 305,150$ -$ 272,591$ 100$ 5,021,189$ -$

Reconciliation of Medicaid Managed Care (PEPM) Funds:

PEPM Payments Received 3,533,633$ Medicaid Savings Carried Over - Expenditures (2,284,555) Medicaid Savings Carryforward -

Returned to PIHP 1,249,078$

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Documents

MACOMB COUNTY, MICHIGAN SINGLE AUDIT ACT COMPLIANCEfinance.macombgov.org/sites/default/files/content/... · 2019. 12. 16. · 5750 New King St., Suite 200 Troy , MI 48098 Ph: 248.952.5000