U.S. DEPARTMENT OF JUSTICE

Audit Report

Office of Justice Programs

Award Number 96-DC-MX-0007

GR-50-98-021

July 22, 1998

EXECUTIVE SUMMARY

The Office of the Inspector General, Audit Division, has completed an audit of grant 96-DC-MX-0007 awarded by the U.S. Department of Justice, Office of Justice Programs, to Kalamazoo County, Michigan for the period October 1, 1995, through March 31, 1998. Kalamazoo County (County) received a grant of $750,000 to expand its Substance Abuse Diversion Program to include nonviolent male felony offenders. Grant expenditures through March 31, 1998, totalled $244,732.

In general, the County managed the grant properly; however, our review revealed the following:

• A total of $1,912 charged to the grant was not properly allocated.

• The County failed to account for and report on all program-related costs and income, resulting in total program costs and income being inaccurate. The lack of accurate information inhibited the County's ability to ensure compliance with its matching grant requirements and resulted in incorrect financial reports.

• Problems with computer software prevented the County from billing for and collecting all program income.

These items are discussed in the Findings and Recommendations section of the report. Our scope and methodology appear in Appendix I.

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