Village of Port Sanilac

2025-003: Preparation and submission reporting required Assistance Listing Number, Federal Agency and Program Name: ALN 10.760, U.S. Department of Agriculture, Water and Waste Disposal Systems for Rural Communities. Federal Award Identification Number and Year: Not applicable. Pass Through Entity: Not applicable. Type: Significant deficiency in internal controls over compliance with quarterly reporting requirement. Repeat Finding: No. Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 (COSO). Condition: during our testing for reporting compliance, it was noted the Village was not aware of the quarterly reports required under the grant agreement. Context: The Village did not file the three quarterly reports required for the period under audit by the due date. Questioned Costs: None. Cause: The Village did not submit required quarterly reports during the audit period, as they were unaware of the requirement. Effect: The quarterly reports were not submitted during the period under audit within the due dates required. Recommendation: We recommend management increase awareness of federal program compliance requirements and monitor compliance with the requirements on regular basis. In addition, we recommend that management review its procedures and controls in place to ensure that reports are completed and submitted by the required due dates. Response: Management agrees with the finding. See corrective action plan.