Audit 10948

FY End
2023-06-30
Total Expended
$1.68M
Findings
10
Programs
3
Organization: City of Grosse Pointe Park (MI)
Year: 2023 Accepted: 2024-01-11
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
8269 2023-004 Significant Deficiency - P
8270 2023-004 Significant Deficiency - P
8271 2023-004 Significant Deficiency - P
8272 2023-004 Significant Deficiency - P
8273 2023-004 Significant Deficiency - P
584711 2023-004 Significant Deficiency - P
584712 2023-004 Significant Deficiency - P
584713 2023-004 Significant Deficiency - P
584714 2023-004 Significant Deficiency - P
584715 2023-004 Significant Deficiency - P

Contacts

Name Title Type
RC2VEGBKNCS8 Ginger Moriarty Auditee
3138224012 Ali Barnes Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: City of Grosse Pointe Park has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City of Grosse Pointe Park under programs of the federal government for the year ended June 30, 2023. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of City of Grosse Pointe Park, it is not intended to and does not present the financial position, changes in net position, or cash flows of City of Grosse Pointe Park.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: City of Grosse Pointe Park has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. City of Grosse Pointe Park has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Reconciliation to the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: City of Grosse Pointe Park has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain grants that were awarded as a result of a FEMA disaster require recipients to recognize the federal expenditure when the funds are obligated. Therefore, only $136,617 of the current year expenditures related to assistance listing number 97.036 recognized in Schedule of Expenditures of Federal Awards is recognized as revenue in the General Fund financial statements. Following is a reconciliation of the expenditures reported in the schedule of expenditures of federal awards to the revenue recognized in the City’s financial statements. See Notes to the SEFA for table.

Finding Details

Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Criteria: Uniform Guidance requires certain policies be in place to govern federal funding. Condition: The City did not formally adopt grant policies required by the Uniform Guidance. Cause/Effect: The City finance department in previous years did not have the grant compliance knowledge and experience to know what policies needed to be implemented. Recommendation: We recommend management ensures a complete review and implementation of Uniform Guidance policies. Views of Responsible officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.