FAC Explorer

Audit 10187

FY End
2023-06-30
Total Expended
$4.02M
Findings
4
Programs
11
Organization: City of Madison Heights, Michigan (MI)
Year: 2023 Accepted: 2024-01-08
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7836 2023-001 Material Weakness - I
7837 2023-001 Material Weakness - I
584278 2023-001 Material Weakness - I
584279 2023-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.14M Yes 1
14.251 Economic Development Initiative $490,000 - 0
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $119,872 - 0
14.218 Community Development Block Grants/entitlement Grants $105,192 - 0
97.044 Assistance to Firefighters Grant $94,709 - 0
20.616 National Priority Safety Programs $19,543 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $18,194 Yes 1
90.404 Covid-19 - 2018 Hava Election Security Grants $14,101 - 0
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $8,000 - 0
16.609 Project Safe Neighborhoods $6,067 - 0
16.607 Bulletproof Vest Partnership Program $1,790 - 0

Contacts

Name Title Type
EGY3GJKYGZ83 Linda Kunath Auditee
2488372639 Martin Olejnik Auditor
No contacts on file

Notes to SEFA

Title: Disaster Grants Public Assistance Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Madison Heights, Michigan (the “City”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass-through entity identifying numbers are presented where available. The City has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee elected not to used the 10 percent de minimis cost rate Included in the Schedule for the year ended June 30, 2023 is $119,872 of expenditures incurred under the Disaster Grants Public Assistance grant (ALN 97.036) in a previous fiscal year. The project worksheet for these expenditures was approved in the current fiscal year, and these expenditures have been reported in the current fiscal year in accordance with the reporting requirements outlined in the 2023 Compliance Supplement.

Finding Details

Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.214 requires non-federal entities to comply with regulations related to suspension and debarment. Condition - The City had no control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Questioned Costs - None. Although there was no verification that the contractor was not suspended or debarred prior to the audit, a subsequent check was performed to verify the vendor was not suspended or debarred. Identification of How Questioned Costs Were Computed - Not applicable Context - The City utilized one contractor for the civic center improvement project paid with Coronavirus State and Local Fiscal Recovery Funds. Cause and Effect - Without controls in place to ensure vendors are not suspended or debarred, the City risks entering into contracts with excluded parties, which would be considered noncompliance with the Uniform Guidance. Recommendation - We recommend the City update its policies to include controls for verifying contractors are not suspended or debarred. Although this is a requirement only for contracts involving the use of federal funds, the City may want to update its policies over all procurements, not just those related to federally funded projects. Views of Responsible Officials and Corrective Action Plan - City manager office staff has searched the state procurement office webpage to check if any vendor for a federal project is on the debarment list, which they are not. In the future, as part of Federal Grant Funding implementation, staff will check vendors to make sure they are not debarred or suspended from federal funding awards.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.214 requires non-federal entities to comply with regulations related to suspension and debarment. Condition - The City had no control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Questioned Costs - None. Although there was no verification that the contractor was not suspended or debarred prior to the audit, a subsequent check was performed to verify the vendor was not suspended or debarred. Identification of How Questioned Costs Were Computed - Not applicable Context - The City utilized one contractor for the civic center improvement project paid with Coronavirus State and Local Fiscal Recovery Funds. Cause and Effect - Without controls in place to ensure vendors are not suspended or debarred, the City risks entering into contracts with excluded parties, which would be considered noncompliance with the Uniform Guidance. Recommendation - We recommend the City update its policies to include controls for verifying contractors are not suspended or debarred. Although this is a requirement only for contracts involving the use of federal funds, the City may want to update its policies over all procurements, not just those related to federally funded projects. Views of Responsible Officials and Corrective Action Plan - City manager office staff has searched the state procurement office webpage to check if any vendor for a federal project is on the debarment list, which they are not. In the future, as part of Federal Grant Funding implementation, staff will check vendors to make sure they are not debarred or suspended from federal funding awards.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.214 requires non-federal entities to comply with regulations related to suspension and debarment. Condition - The City had no control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Questioned Costs - None. Although there was no verification that the contractor was not suspended or debarred prior to the audit, a subsequent check was performed to verify the vendor was not suspended or debarred. Identification of How Questioned Costs Were Computed - Not applicable Context - The City utilized one contractor for the civic center improvement project paid with Coronavirus State and Local Fiscal Recovery Funds. Cause and Effect - Without controls in place to ensure vendors are not suspended or debarred, the City risks entering into contracts with excluded parties, which would be considered noncompliance with the Uniform Guidance. Recommendation - We recommend the City update its policies to include controls for verifying contractors are not suspended or debarred. Although this is a requirement only for contracts involving the use of federal funds, the City may want to update its policies over all procurements, not just those related to federally funded projects. Views of Responsible Officials and Corrective Action Plan - City manager office staff has searched the state procurement office webpage to check if any vendor for a federal project is on the debarment list, which they are not. In the future, as part of Federal Grant Funding implementation, staff will check vendors to make sure they are not debarred or suspended from federal funding awards.
Finding 2023-001
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.214 requires non-federal entities to comply with regulations related to suspension and debarment. Condition - The City had no control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Questioned Costs - None. Although there was no verification that the contractor was not suspended or debarred prior to the audit, a subsequent check was performed to verify the vendor was not suspended or debarred. Identification of How Questioned Costs Were Computed - Not applicable Context - The City utilized one contractor for the civic center improvement project paid with Coronavirus State and Local Fiscal Recovery Funds. Cause and Effect - Without controls in place to ensure vendors are not suspended or debarred, the City risks entering into contracts with excluded parties, which would be considered noncompliance with the Uniform Guidance. Recommendation - We recommend the City update its policies to include controls for verifying contractors are not suspended or debarred. Although this is a requirement only for contracts involving the use of federal funds, the City may want to update its policies over all procurements, not just those related to federally funded projects. Views of Responsible Officials and Corrective Action Plan - City manager office staff has searched the state procurement office webpage to check if any vendor for a federal project is on the debarment list, which they are not. In the future, as part of Federal Grant Funding implementation, staff will check vendors to make sure they are not debarred or suspended from federal funding awards.