Administration of Act 51-Related Funds - 591-0410-21

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

Unemployment Insurance Agency’s Personnel Management Processes During the COVID-19 Pandemic - 186-0310-21

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

State Sponsored Group Insurance Fund - 071-0143-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Mackinac Bridge Authority - 591-0210-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Legislative Retirement System Financial Statement Audit and Report on Internal Controls - 900-0140-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State of Michigan 457 Plan Financial Statement Audit and Report on Internal Controls - 071-0157-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State of Michigan 401k Plan Financial Statement Audit and Report on Internal Controls - 071-0156-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Military Retirement Plan Financial Statement Audit and Report on Internal Controls - 071-0158-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan State Police Retirement System Financial Statement Audit and Report on Internal Controls - 071-0154-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Judges’ Retirement System Financial Statement Audit and Report on Internal Controls - 071-0153-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Public School Employees’ Retirement System Financial Statement Audit and Report on Internal Controls - 071-0152-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan State Employees’ Retirement System Financial Statement Audit and Report on Internal Controls - 071-0151-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Economic Development Corporation - 186-0406-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Strategic Fund - 186-0401-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Education Trust – Plans B and C - 271-0284-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Michigan Education Trust – Plan D - 271-0283-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

IT Contract Change Notices - 071-0509-20

Description of Agency

The Central Procurement Services (CPS), Department of Technology, Management, and Budget, provides State agencies with the processes, tools, and techniques to procure IT products and services on time, of good quality, and at a reasonable price. CPS purchases and contracts for all IT hardware and software needed by State agencies for which the Legislature has not otherwise expressly provided. There were 348 IT contracts with 254 vendors active between October 1, 2017 and June 30, 2020. IT contracts are used for various items and services such as software development, project management, computer hardware, maintenance/support, and software licensing. The total original value of the 348 contracts was approximately $2.72 billion. The total value of the contracts after options, changes, and extensions totaled $6.09 billion, an increase of $3.37 billion from the original value. Contract changes are approved by the agency and the contractor. If the change is significant, it may also require approval from the State Administrative Board.

Audit Objective

To assess the effectiveness of the State’s efforts to ensure the reasonableness of change notices for IT contracts.

Timing

We estimate a release date in Late 2020

Michigan State Housing Development Authority Single Audit - 000-0800-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State Agencies’ Use of Transportation-Related Funding - 591-0105-20

Description of Agency

Public Act 207 of 2018 and Public Act 107 of 2017 (the annual appropriations acts for the Michigan Department of Transportation [MDOT] for fiscal years 2019 and 2018, respectively) require that amounts appropriated to State departments to support tax and fee collection, law enforcement, and other program services by other State departments shall be expended from transportation funds pursuant to annual contracts between MDOT and those other State departments. The Acts also require these State departments to annually report to MDOT the amount of funding contracted with MDOT, funds expended, funds returned, and unreimbursed costs incurred but not billed to the transportation funds. In addition, the Acts require the Office of the Auditor General to use a risk-based approach in developing an audit program for the use of transportation funds.


Audit Objectives

  1. To assess the appropriateness of selected State agencies’ charges to transportation funds.

  2. To assess selected State agencies’ compliance with contractual and reporting requirements for transportation-related funding.


Timing

We estimate a release date in Late 2020

Data Classification - 071-0514-20

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

Timing

We estimate a release date in September 29, 2020

State of Michigan Comprehensive Annual Financial Report - 071-0010-21

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Office of Investigative Services, Enforcement Division - 231-0234-20

Description of Agency

The Enforcement Division’s mission is to detect, reduce, and deter fraud in Department of State programs, as well as assist in providing a safe and secure work environment for Department personnel and facilities. This mission is carried out through a network of branch examinations, investigations, data analysis, and investigative and security support functions. For fiscal year 2019, the Division expended $2.8 million. As of May 31, 2020, the Division had 32 full-time employees.

Audit Objectives

  1. To assess the sufficiency of the Division’s efforts to deter, detect, and investigate potential fraud.
  2. To assess the effectiveness of the Division’s efforts to ensure the completeness and accuracy of its case management system.
  3. To assess the sufficiency of the Division’s efforts to help provide safety and security at branch offices.

Timing

We estimate a release date in Early 2021

Negotiation of Consultant Contracts - 591-0211-20

Description of Agency

The Michigan Department of Transportation (MDOT) uses a Quality Based Selection (QBS) process for procuring consultant services. Using QBS, MDOT selects a consultant after a comprehensive evaluation of bidders’ qualifications, such as knowledge, skill, experience, and other project-specific factors, other than cost. After selection of the most qualified consultant, MDOT must negotiate a fair and reasonable cost for the agreed-upon scope of services with the consultant based on the scope and cost estimates provided by MDOT engineers at the onset of the selection process and prior to advertisement. When negotiations are unsuccessful, MDOT may proceed to the next most qualified and approved consultant from the original selection. On average, MDOT negotiates approximately 720 contracts per year.

Audit Objective

To assess the sufficiency of MDOT’s negotiation efforts when procuring consultant contracts.

Timing

We estimate a release date in Early 2021

Clean Michigan Initiative (CMI) – Environmental Protection Programs - 761-0217-20

Description of Agency

EGLE administers environmental protection programs funded with CMI bond proceeds. These programs include response activities at facilities, redevelopment of waterfronts, remediation of contaminated lake and river sediments, nonpoint source pollution prevention and control, water quality monitoring, and pollution prevention efforts. EGLE’s environmental protection programs account for $570 million (84%) of the total $675 million of CMI bonds. During the audit period, EGLE expended $15.4 million of CMI funds. This performance audit is required by Section 324.19615 of the Michigan Compiled Laws.

Audit Objectives

  1. To assess the effectiveness of EGLE’s efforts to ensure that the use of CMI funds complies with laws, regulations, and contract requirements.

  2. To compile and report data for programs eligible for CMI funds.


Timing

We estimate a release date in Early 2021

Interface and Change Controls of the Bridges Integrated Automated Eligibility Determination System (Bridges) - 431-0591-12F

Timing

We estimate a release date in Postponed

Offers in Compromise Program - 271-0145-20

Description of Agency

The Technical Services Unit within the Department of Treasury (Treasury) is responsible for administering the Offers in Compromise Program established by Section 205.23a of the Michigan Compiled Laws. An offer in compromise is a request by a taxpayer to compromise an assessed tax liability, including penalty and interest, for less than the full amount owed. In fiscal year 2019, Treasury accepted 349 offers totaling $1.6 million. As of June 30, 2020, the Technical Services Unit had 10 employees that process offers in compromise.

Audit Objective

To assess the effectiveness of Treasury’s efforts to administer the Offers in Compromise Program.

Timing

We estimate a release date in Late 2020

Brownfield Redevelopment Financing Program - 186-0420-20

Description of Agency

The Brownfield Redevelopment Program Financing Act (Act 381 of 1996) authorizes municipalities to create brownfield redevelopment authorities to facilitate the implementation of brownfield plans, create brownfield redevelopment zones, and promote revitalization of eligible properties through the use of tax increment financing. The Act prescribes the powers and duties of, and the related requirements and criteria for, the brownfield redevelopment authorities; the Department of Environment, Great Lakes, and Energy (EGLE); and the Michigan Strategic Fund (MSF). Effective July 24, 2017, Public Act 46 of 2017 amended the Act to authorize brownfield redevelopment authorities to implement brownfield plans that will have a transformational impact on local economic development and community revitalization. As of December 31, 2018, there were 428 active brownfield projects and 289 brownfield redevelopment authorities Statewide. This performance audit was required by Section 125.2666(6) of the Michigan Compiled Laws.

Audit Objectives

  1. To assess the effectiveness of the Program to increase the taxable values of eligible brownfield properties.

  2. To assess the effectiveness of EGLE and MSF’s efforts to administer the Program.

  3. To assess EGLE and MSF’s compliance with statutory reporting requirements.



Timing

We estimate a release date in Late 2020

Flint Water Service Line Replacement Expenditures - 761-3017-20

Description of Agency

Public Act 340 of 2016 requires the OAG to conduct a final audit of the City of Flint’s use of the $25 million appropriated for service line removal. Our audit report released in October 2019 addresses the final audit requirement.

Also, on March 28, 2017, a U.S. district judge approved a settlement agreement that required the State to allocate $87 million and set aside an additional $10 million in reserves to pay for the replacement of residential lead and galvanized water service lines in the City of Flint. The settlement agreement required the State to request the OAG to conduct annual “financial” and performance audits of the Department of Environment, Great Lakes, and Energy’s (EGLE’s) administration of the payments or reimbursements described in paragraph 23 of the agreement. This performance audit addresses these requirements and is our third report on the expenditures of these funds.

Audit Objectives

  1. To determine the appropriateness of EGLE’s administrative process to issue payments or reimbursements for the Flint water service line replacements.

  2. To determine the appropriateness of EGLE’s expenditure of the Flint water service line replacement appropriations as of July 31, 2020.

  3. To report EGLE’s expenditures of the Flint water service line replacement appropriations.

Timing

We estimate a release date in November 2020

Flint Emergency Expenditures - 000-2020-21

Description of Agency

On January 5, 2016, Governor Snyder declared a state of emergency for Genesee County (referred to as the Flint declaration of emergency) due to the ongoing health and safety issues caused by elevated lead levels in the City of Flint’s drinking water. The Legislature enacted numerous appropriations to address this situation, both as supplemental appropriations to and transfers within the fiscal year 2016 budget and spending authorization provided in the fiscal year 2017 budget.

Public Act 3 of 2016 requires the Office of the Auditor General to audit the use of the funds appropriated for this emergency and report at a minimum of every six months until the funds are expended.

Audit Objectives

  1. To determine the appropriateness of State agencies’ expenditure of the Flint declaration of emergency appropriations.

  2. To report State agencies’ expenditures of the Flint declaration of emergency appropriations.


Timing

We estimate a release date in Early 2021

MDOT’s Use of Warranties - 591-0320-20

Description of Agency

The Michigan Department of Transportation (MDOT) monitors warranties applied to road and bridge construction projects. MDOT uses the Statewide Warranty Administration Database (SWAD) to track warranties and to identify warranties due for inspection or requiring corrective action. For the period October 1, 2017 through March 31, 2020, MDOT had 877 active warranties.

Audit Objectives

  1. To assess the effectiveness of MDOT’s efforts to monitor its road and bridge corrective action warranty work.

  2. To assess the sufficiency of MDOT’s efforts to evaluate the overall value of requiring warranties.

  3. To assess the effectiveness of MDOT’s efforts to ensure the completeness and accuracy of information in MDOT’s SWAD.


Timing

We estimate a release date in Early 2021

Selected Activities Within the Bureau of Construction Codes - 641-0240-20

Description of Agency

The mission of the Bureau of Construction Codes (BCC) is to ensure that Michigan’s built environment and the systems within are sound, safe, and sanitary; that building users’ health, safety, and welfare are protected; and that, through a coordinated program of code compliance, investigation and training, there is consistent application of standards. For fiscal year 2019, BCC expended $17.1 million. As of April 2, 2020, BCC had 120 employees.

Audit Objectives

  1. To assess the sufficiency of BCC’s efforts to conduct inspections.

  2. To assess the sufficiency of BCC’s efforts to process permit requests.

  3. To assess the sufficiency of BCC’s efforts to resolve complaints in a timely manner.

  4. To assess BCC’s compliance with statutory reporting requirements.


Timing

We estimate a release date in Early 2021

State Treasury Accounts Receivable System (STAR) - 271-0590-13F

Description of Agency

The State Treasury Accounts Receivable System (STAR) is a mainframe computer system used by the Office of Collections, Department of Treasury, to manage and process all delinquent individual and business taxes and other debts owed to the State of Michigan. Individual and business taxes include sales, use, and withholding taxes; Michigan business taxes; and individual income taxes. The Department of Technology, Management, and Budget provides IT support services for STAR.

Timing

We estimate a release date in Late 2020

Disadvantaged Business Enterprise Program - 591-0351-20

Description of Agency

The Disadvantaged Business Enterprise (DBE) Program is a federally required program designed to increase the participation of minorities, women, and other socially and economically disadvantaged business owners in federally funded road projects. It strives to remove barriers to entry and help disadvantaged firms develop the ability to compete in their industry. The DBE Program is administered by the Michigan Department of Transportation’s Office of Business Development (OBD) which expended $3.36 million in fiscal year 2019 and had 22 full-time employees as of April 7, 2020.

Audit Objectives

  1. To assess the sufficiency of OBD’s efforts to ensure that DBEs comply with certification requirements.

  2. To assess the effectiveness of OBD’s administration of the DBE Program.

  3. To assess the effectiveness of selected access controls over the Michigan Unified Certification Program (MUCP) System.

Timing

We estimate a release date in Early 2021

Monitoring of IT Contracts - 071-0510-20

Description of Agency

The Central Procurement Services (CPS), Department of Technology, Management, and Budget (DTMB), provides State agencies with the processes, tools, and techniques to procure IT products and services on time, of good quality, and at a reasonable price. CPS purchases and contracts for all IT hardware and software needed by State agencies for which the Legislature has not otherwise expressly provided. There were 348 IT contracts with 254 vendors active between October 1, 2017 and June 30, 2020. IT contracts are used for various items and services such as software development, project management, computer hardware, maintenance/support, and software licensing. The total original value of the 348 contracts was approximately $2.72 billion. The total value of the contracts after options, changes, and extensions totaled $6.09 billion, an increase of $3.37 billion from the original value. Monitoring of contract deliverables and requirements is performed by a designated project manager which can be a DTMB employee or an employee for the agency that the IT service or product was purchased for. Project managers report high-level monitoring results to CPS for vendor evaluation.

Audit Objective

To assess the sufficiency of the State’s efforts to ensure that IT contract deliverables were received and that selected requirements were met.

Timing

We estimate a release date in Mid 2021

Michigan State Employees’ Retirement System Schedules of Employer Pension and OPEB Allocations and Schedule of Collective Pension and OPEB Amounts - 071-0165-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Pension and OPEB Census Data Testing - 071-0163-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Employee Benefits Division’s Postemployment Life Insurance Benefit - 071-0168-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

State Child Abuse and Neglect Prevention Board (Children’s Trust Fund) - 431-0178-20

Description of Agency

The State Child Abuse and Neglect Prevention Board is administered under the supervision of Michigan Department of Health and Human Services (MDHHS). The Board is commonly referred to as the Children’s Trust Fund (CTF) and is the Michigan chapter of Prevent Child Abuse America. The CTF Unit within MDHHS carries out the duties, functions, and responsibilities of the Board.

CTF’s mission is to serve as a voice for Michigan’s children and families and to promote their health, safety, and welfare by funding effective local programs and services that prevent child abuse and neglect. A CTF charitable and educational endowment fund (Trust Fund) provides the necessary resources. In fiscal year 2019, Trust Fund revenues totaled $3.3 million and expenditures totaled $3.5 million; fund balance was $27.5 million as of September 30, 2019.

This performance audit is required by Section 722.612 of the Michigan Compiled Laws.

Audit Objectives

  1. To assess CTF’s compliance with selected child abuse and neglect prevention laws, regulations, rules, and procedures.

  2. To assess the sufficiency of CTF’s internal control to safeguard the Pam Posthumus Signature Auction Event inventory and proceeds.


Timing

We estimate a release date in Late 2020

Liquor Purchase Revolving Fund - 641-0161-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Emergency 9-1-1 Fund - 271-0265-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Adult Protective Services - 431-2601-20

Descripton of Agency

Adult Protective Services (APS) provides protection to vulnerable adults who are at risk of harm from the presence or threat of abuse, neglect, or exploitation. The goal of APS is that it will begin (within 24 hours) to investigate and assess situations referred to the Michigan Department of Health and Human Services (MDHHS) when a vulnerable adult is suspected of being or believed to be abused, neglected, and/or exploited and ensure, to the extent possible, that adults in need of protection are living in a safe and stable situation with legal intervention, where required, in the least intrusive and restrictive manner. The Centralized Intake Division (CI) receives and reviews all complaints of adult abuse, neglect, and/or exploitation to determine if the complaint meets requirements for investigation. Complaints meeting these requirements are assigned to the appropriate MDHHS local office for an APS investigation of the allegations. Between October 1, 2017 and March 12, 2020, MDHHS’s CI received approximately 123,000 complaints of adult abuse, neglect, or exploitation, of which 68,000 (55%) were assigned to local office APS investigators for investigation.

Audit Objectives

  1. To assess whether MDHHS’s Centralized Intake Division appropriately assigned APS complaints for investigation and/or referred the complaints to other agencies in accordance with applicable requirements.

  2. To assess whether MDHHS appropriately investigated assigned complaints of adult abuse, neglect, and/or exploitation in accordance with applicable requirements.

  3. To assess whether MDHHS provided appropriate training for the assignment and investigation of APS complaints in accordance with applicable requirements.

  4. To assess the sufficiency of MDHHS’s efforts to evaluate the effectiveness of APS activities to protect vulnerable adults.

  5. To assess the effectiveness of selected MDHHS and DTMB security and access controls over Michigan Adult Integrated Management System (MiAIMS).

Timing

We estimate a release date in Early 2021

Homeownership Programs - 186-0205-20

Description of Agency

The Michigan State Housing Development Authority’s (MSHDA’s) mission is to partner to provide homes and preserve places for the people of Michigan. MSHDA’s Homeownership Division provides a variety of programs and products to purchase a home or improve a homeowner’s current property. Michigan is a recipient of the Hardest Hit Funds (HHFs), from the U.S. Department of Treasury, to provide assistance to families to help prevent foreclosures and stabilize housing markets. MSHDA uses HHFs to administer the Loan Rescue Program and the Down Payment Assistance Program, which provide a home buyer with a down payment for the purchase of homes in targeted areas throughout Michigan. MSHDA issued loans to homeowners totaling over $1.1 billion and provided approximately $51.7 million in HHFs from July 1, 2017 through November 30, 2019.

Audit Objectives

  1. To assess the effectiveness of MSHDA’s efforts in providing financing to Michigan residents with low and moderate income for the purchase of single-family homes.

  2. To assess the effectiveness of MSHDA’s efforts in providing assistance to Michigan homeowners under the Hardest Hit Fund (HHF) programs.

  3. To assess the effectiveness of MSHDA’s security and access controls over selected systems.

Timing

We estimate a release date in Late 2020

Criminal History Screening and Monitoring of Public School Contracted Employees - 313-0640-20

Description of Agency

State law mandates that the Michigan Department of Education (MDE), by authority of the State Board of Education, require each local school board, each public school academy board, each intermediate school district board, and the officers of each of those boards to observe the laws related to schools.

Section 380.1230a of the Michigan Compiled Laws:

  • Requires the board of a school district or intermediate school district or the governing body of a public school academy or nonpublic school to require individuals assigned to regularly and continuously work under contract in its schools to submit fingerprints to the Michigan Department of State Police for the performance of a criminal records check through the Federal Bureau of Investigation for the purposes of employment screening and monitoring of criminal conviction activity while working under contract in a school and precludes individuals with certain criminal convictions from working regularly and continuously under contract in schools.

  • Defines regularly and continuously working under contract to mean: Working at a school on a more than an intermittent or sporadic basis as an owner or employee of an entity that has a contract with a school district, intermediate school district, public school academy, or nonpublic school to provide food, custodial, transportation, counseling, or administrative services, or to provide instructional services to pupils or related and auxiliary services to special education pupils.

There are an undeterminable number of contracted employees working in Michigan’s public schools and not all public schools utilize contracted employees. As a part of our preliminary procedures, we sampled 20 public schools that were representative of Michigan’s Statewide population of nearly 900 public schools and determined that during the period of October 2015 through February 2020:

  • 17 (85%) selected schools had approximately 2,600 contracted employees.

  • 3 (15%) selected schools had no contracted employees.


Audit Objective

To assess the effectiveness of MDE’s efforts to ensure that public school contracted employees are fingerprinted and monitored for criminal convictions.

Timing

We estimate a release date in Mid 2021

Michigan Automated Prescription System (MAPS) - 641-0220-20

Description of Agency

The Bureau of Professional Licensing (BPL), Department of Licensing and Regulatory Affairs (LARA), administers MAPS, a Web-based system that maintains data for schedule 2, 3, 4, and 5 controlled substance prescriptions dispensed in the State. MAPS was required, in part, to enable regulatory and law enforcement agencies to prevent abuse and diversion of controlled substances. State statute requires veterinarians, pharmacists, dispensing prescribers, and pharmacies to report dispensed schedule 2, 3, 4, and 5 controlled substances in MAPS and requires prescribers to utilize MAPS to review patients’ prescription history data before prescribing more than a three-day supply of schedule 2, 3, 4, and 5 controlled substances.

During fiscal year 2019, LARA expended $2.6 million for the MAPS application, section staff, and related services. As of November 15, 2019, BPL’s MAPS section had 6 full-time employees.


Audit Objectives

  1. To assess the sufficiency of BPL’s efforts to ensure compliance with the laws and rules governing MAPS.

  2. To assess the effectiveness of select LARA security and access controls over MAPS.

  3. To assess the sufficiency of BPL’s efforts to use MAPS data to assist in the prevention of abuse, diversion, and over prescribing of controlled substances.


Timing

We estimate a release date in Late 2020

State of Michigan Single Audit - 000-0100-20

Audit Objectives

  1. To express an opinion on whether the entity’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America.

  2. To issue a report on internal control over financial reporting and on compliance and other matters in accordance with generally accepted government auditing standards.

Timing

We estimate a release date in October 2020

Medicaid Home Help Program - 391-0708-19

Description of Agency

The Medicaid Home Help Program, Michigan Department of Health and Human Services (MDHHS), provides in-home personal care services to Medicaid clients with functional limitations resulting from a medical or physical disability or cognitive impairment who live in a setting other than a hospital, nursing facility, licensed foster care home, mental institution, or home for the aged. Personal care services assist clients with activities of daily living (eating, toileting, bathing, grooming, dressing, transferring, and mobility), instrumental activities of daily living (medication, meal preparation, shopping, laundry, and light housework), and complex care services (colostomy care, suctioning, range of motion, and wound care). From October 1, 2017 through September 30, 2019, the Medicaid Home Help Program provided services to 69,285 clients and expended $643.0 million.

Audit Objective

To assess the effectiveness of MDHHS’s efforts in administering the Medicaid Home Help Program.

Timing

We estimate a release date in November 2020

Medicaid and Children’s Health Insurance Program (CHIP) Client Eligibility Determinations - 391-0710-19

Description of Agency

The Michigan Department of Health and Human Services (MDHHS) establishes client eligibility for individuals in need of Medicaid and Children’s Health Insurance Program (CHIP) health care services. Oversight of the eligibility determination process is primarily performed by the Economic Stability Administration (ESA) within MDHHS. The ESA provides guidance in process, policy, training, technology, and leadership to the MDHHS local offices, and MDHHS local office caseworkers determine eligibility. During fiscal year 2019, $14.7 billion and $258.2 million in direct beneficiary level payments were issued on behalf of 3.3 million and 478,000 individuals enrolled in the Medicaid and CHIP programs, respectively.

Audit Objectives

  1. To assess the effectiveness of MDHHS’s efforts to complete accurate Medicaid and CHIP eligibility determinations.

  2. To assess the effectiveness of MDHHS’s oversight of the Medicaid and CHIP client eligibility determination processes at MDHHS local offices.

Timing

We estimate a release date in Early 2021

Section 31a Program for At-Risk Pupils - 313-0160-19

Audit Objectives

  • The audit is currently in planning and the audit objectives are not yet finalized.

Child Care Fund - 431-1400-19

Description of Agency

The Michigan Department of Health and Human Services (MDHHS) administers the Child Care Fund (CCF), which supports a collaborative effort between the State and county governments to fund programs that serve neglected, abused, and delinquent youth in Michigan. The State reimburses counties 50% for eligible juvenile justice services. The CCF Reimbursement Unit, Bureau of Audit and Federal Compliance Division, Children’s Services Agency, reviews and approves annual county CCF program and spending plans. The CCF Reimbursement Unit also reviews monthly reimbursement requests. The CCF Audit Unit conducts on-site reviews to ensure that county services comply with State statute and MDHHS policies and procedures. The State’s reimbursements to counties totaled $160 million during fiscal year 2018 and $93.5 million during fiscal year 2019 through June 30, 2019.

Audit Objectives

  1. To assess the sufficiency of MDHHS’s efforts to approve county CCF annual plans and budgets that comply with State statute and CCF Handbook requirements.

  2. To assess the sufficiency of MDHHS’s efforts in monitoring the appropriateness of CCF expenditures reimbursed to counties.

  3. To assess the timeliness of MDHHS’s CCF expenditure reimbursements to counties.


Timing

We estimate a release date in November 2020

Division of Emergency Medical Services and Trauma - 391-0268-19

Description of Agency

The Division of Emergency Medical Services and Trauma (DET), Michigan Department of Health and Human Services (MDHHS), serves to better protect the health and well-being of Michigan citizens through the administration and continuous improvement of emergency medical services (EMS) and a Statewide trauma system. DET is responsible for the administration of license and inspection requirements for EMS personnel, life support agencies, and life support vehicles; the oversight of EMS education programs; and the implementation and evaluation of a Statewide trauma system. There were approximately 28,800 EMS providers, 800 life support agencies, and 3,800 life support vehicles licensed in Michigan as of August 2019. In fiscal year 2018, DET expended $5.4 million on salaries, wages, and administrative expenses. As of July 2019, DET had 35 employees.

Audit Objectives

  1. To assess the effectiveness of MDHHS’s efforts to appropriately administer licensing and inspection requirements for EMS personnel, agencies, and vehicles.

  2. To assess the effectiveness of MDHHS’s oversight of EMS education programs.

  3. To assess the effectiveness of MDHHS’s efforts to implement and evaluate a Statewide trauma system in compliance with requirements.


Timing

We estimate a release date in Early 2021

Statewide Contracting Practices for Commodities and Professional Services, Central Procurement Services - 071-0142-19

Description of Agency

Central Procurement Services’ (CPS’s) mission is to provide State agencies with the mechanism to purchase the products and services required to serve the citizens of the State of Michigan on time, of good quality, and at a reasonable price. CPS sets policies and procedures for purchasing across State departments and manages all aspects of high-level, complex bids to help State agencies achieve their missions and ensure the best value for Michigan residents. CPS is responsible for contracting for supplies, materials, services, insurance, utilities, third-party financing, printing, and other items needed by State departments. As of May 2019, CPS identified 530 active commodities and professional services contracts totaling approximately $46.4 billion. As of July 9, 2019, CPS had 60 full-time equated positions.

Audit Objectives

  1. To assess CPS’s compliance with selected laws, rules, and regulations related to solicitations, contracts, and change notices.

  2. To assess the effectiveness of CPS’s efforts to monitor State agency compliance with delegated purchasing authority requirements.

  3. To assess the effectiveness of CPS’s efforts to monitor vendor performance.


Timing

We estimate a release date in Late 2020

Bridge Inspection Program and MiBridge System - 591-0169-19

Desciption of Agency

The Michigan Department of Transportation’s (MDOT’s) Bureau of Bridges and Structures (BOBS) is responsible for administering the State’s bridge inspection program in compliance with National Bridge Inspection Standards (NBIS) for highway bridges longer than 20 feet that are located on public roads. The bridge inspection program is critical to ensuring the safety of Michigan highway bridges, identifying repair and maintenance needs, and determining the appropriate allocation of MDOT bridge funds. BOBS is responsible for establishing procedures related to bridge inspections, load rating calculations, quality control, and quality assurance. As of May 31, 2019, MDOT and 329 bridge owners were responsible for 11,186 bridges.

MiBridge is MDOT’s primary system for maintaining bridge-related data, including plan drawings, inspection reports, load ratings, and critical findings. MiBridge is used by bridge inspectors and bridge management personnel to maintain the bridge inventory and by local agencies, consultants, and the public to determine the condition of Michigan bridges.

Audit Objectives

  1. To assess the effectiveness of MDOT’s efforts to administer its quality control and quality assurance program over bridge inspections and load ratings.
  2. To assess MDOT’s compliance with selected federal and State requirements for its bridge inspection program.
  3. To assess the effectiveness of selected MiBridge access, backup, and application controls.

Timing

We estimate a release date in Late 2020

Office of Educator Excellence - 313-0140-18

Description of Agency

The Michigan Department of Education’s (MDE’s) Office of Educator Excellence (OEE) supports the educational achievement of Michigan youth, pre-kindergarten through twelfth grade, by ensuring that all professional school personnel complete quality preparation and professional development programs which meet standards established by the Michigan Legislature and the State Board of Education. OEE is also responsible for the certification, endorsement, and permitting processes for teachers, administrators, counselors, and psychologists and for the implementation of Michigan’s educator evaluation program. There were approximately 107,000 teachers and 12,000 school administrators working in Michigan schools during the 2017-18 school year.

Audit Objectives

  1. To assess the sufficiency of OEE’s oversight of required district provided professional development and mentoring for teachers.

  2. To assess the sufficiency of OEE’s oversight of required evaluations for teachers and school administrators.

  3. To assess the effectiveness of OEE’s efforts to ensure that certificates, endorsements, and permits are only issued to educators who comply with State requirements.

  4. To assess the effectiveness of selected MDE user access controls over the Michigan Online Educator Certification System (MOECS).


Timing

We estimate a release date in November 2020

Child Welfare Caseloads - 431-2785-18

Description of Agency

The Michigan Department of Health and Human Services (MDHHS) administers the State’s child welfare programs and has established maximum caseloads for over 4,000 staff who perform critical tasks related to children’s protective services, foster care, adoption, and child welfare licensing. These staff are located in local county offices and private child placing agencies throughout the State. Ensuring that child welfare staff have manageable workloads is instrumental in promoting the delivery of quality services and improving outcomes for children and families.

Audit Objectives

To assess the sufficiency of MDHHS’s central office efforts to monitor selected child welfare staff caseloads.

Timing

We estimate a release date in Early 2021

Cyber Schools - 313-0225-18

Description of Agency

A cyber school is a school of excellence, authorized under Section 380.552 of the Michigan Compiled Laws, that provides full-time instruction to pupils through virtual learning or otherwise on a computer or other technology, which instruction and learning may be remote from a school facility. Michigan’s first cyber schools began operation during the 2010-11 school year. During the 2016-17 school year, 13 cyber schools enrolled more than 15,000 students from across the State. For the 2016-17 school year, cyber schools received $77.8 million of per pupil foundation allowance through the State School Aid Fund.

Audit Objectives

  1. To assess the sufficiency of the Michigan Department of Education’s (MDE’s) process to ensure that contracts establishing cyber schools meet statutory requirements.

  2. To assess the sufficiency of MDE’s monitoring of cyber school authorizers.

  3. To assess the effectiveness of MDE’s efforts to monitor and evaluate the virtual learning provided by cyber schools.

  4. To compile information on the State’s funding of cyber schools and their reported costs.


Timing

We estimate a release date in Late 2020

Medicaid Non-Emergency Transportation - 391-0715-20

Description of Agency

The Medicaid Non-Emergency Transportation (NEMT) Program’s purpose is to ensure transportation to and from medical appointments for eligible Medicaid beneficiaries. The Michigan Department of Health and Human Services (MDHHS) administers the program and provides non-emergency medical transportation to Medicaid beneficiaries who cannot otherwise afford a ride to medical appointments. The rides must be for medical purposes, including medical, dental, vision, mental health, or substance abuse appointments, or to the pharmacy.

Audit Objective

To assess the effectiveness of MDHHS’s efforts to administer select NEMT services.

Timing

We estimate a release date in Late 2020

Child Placing Agencies - 431-2780-16

Description of Agency

Child placing agencies are a combination of public agencies and private contracted agencies, licensed by the Michigan Department of Health and Human Services (MDHHS), that deliver foster care, adoption, and other services for children in Michigan’s foster care system. The child placing agencies’ responsibilities include ensuring the safety, security, permanency, and well-being of the children for whom the agency provides services.

Audit Objectives

  1. To assess MDHHS’s effectiveness in licensing child placing agencies.

  2. To determine the effectiveness of MDHHS’s efforts to monitor child placing agency service delivery.

  3. To assess the sufficiency of MDHHS’s efforts to report child welfare information applicable to child placing agency activities in accordance with selected State and federal requirements.


Timing

We estimate a release date in Early 2021


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