CHARTER TOWNSHIP OF WEST BLOOMFIELDLocal Government

CFDA Number, Federal Agency, and Program Name CFDA 21.019, U.S. Department of Treasury COVID 19 Coronavirus Relief Fund Pass through Entity Michigan Department of Treasury Finding Type Significant deficiency and material noncompliance with laws and regulations Repeat Finding No Criteria The State of Michigan created the program under public Act 123 of 2020 (amended by Public Act 144 of 2020), which allowed the reimbursement of public safety and public health payroll expenditures incurred in the months of April and May 2020. Condition The Township charged payroll costs that were incurred outside of the period of availability as defined by the State of Michigan award language. Questioned Costs $42,395 Identification of How Questioned Costs Were Computed Costs were computed by calculating the percent of retiree healthcare costs that were outside of the period of performance. Context The Township received an allocation of COVID 19 Coronavirus Relief Fund (CRF) of $2,646,189 based on $3,986,111 of public safety payroll expenses submitted . During our testing of the expenditures charged to the grant we noted benefits of $42,395 included in the calculation that were not eligible because they were outside of the period of availability. In addition, the Township did not receive $1,339,922 in eligible costs that were requested and within the period of performance. Cause and Effect The Township did not ensure that the costs charged to the grant were within the period of performance. Recommendation The Township should implement procedures to ensure that all costs applied to the grant are within the period of performance. Views of Responsible Officials and Corrective Action Plan The Township acknowledges the questioned costs of $42,395 (1.6% of expenditures) noting that a review was in place but a clerical error resulted in the allocation percent not being applied to the retiree healthcare costs. The Township subsequently identified $82,228 in fringe benefits that were not previously charged to the grant but are allowable. These costs of $82,228 exceed the costs of $42,395 that were outside the period of availability. In addition, the Township did not receive $1,339,922 in eligible costs that were requested and within the period of performance that further offsets the $42,395 error.