U.S. Fish and Wildlife Service Wildlife and Sport Fish Restoration Program Grants Awarded to the State of Michigan, Department of Natural Resources from October 1, 2013, through September 30, 2015

We audited costs claimed by the State of Michigan, Department of Natural Resources (Department), under grants awarded by the U.S. Fish and Wildlife Service (FWS) Wildlife and Sport Fish Restoration Program. Our audit included claims totaling $91 million on 25 grants that were open during the State fiscal years that ended September 30, 2014, and September 30, 2015. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to collecting and using hunting and fishing license revenues, and reporting program income. We questioned costs totaling $60,306,048 related to unsupported payroll and in-kind match and unallowable in-kind contributions and other costs. In addition, we found that the Department: 1) potentially diverted real property acquired with license revenue, 2) had not adequately managed equipment, and 3) had not provided sufficient oversight of subawards. The Department and the FWS provided responses to our draft report. Based on these responses, we consider 1 recommendation resolved and implemented, 10 recommendations resolved but not implemented, and 3 recommendations unresolved.