FAC Explorer

Audit 16522

FY End
2022-03-31
Total Expended
$1.10M
Findings
2
Programs
1
Organization: Village of Armada (MI)
Year: 2022 Accepted: 2022-10-10
Auditor: McBride-Manley & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12262 2022-004 Significant Deficiency Yes P
588704 2022-004 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.10M Yes 1

Contacts

Name Title Type
TVTMWJLQMKL5 Michelle Poulos Auditee
5867849151 Curtis McBride Auditor
No contacts on file

Notes to SEFA

Title: LOAN/LOAN GUARANTEE OUTSTANDING BALANCES Accounting Policies: THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES THE GRANT ACTIVITY OF THE VILLAGE OF ARMADA AND IS PRESENTED ON THE ACCRUAL BASIS OF ACCOUNTING. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF THE UNIFORM GUIDANCE. THEREFORE, SOME AMOUNTS PRESENTED IN THIS SCHEDULE MAY DIFFER FROM THOSE AMOUNTS PRESENTED IN, OR USED IN THE PREPARATION OF, THE BASIC FINANCIAL STATEMENTS. SEE NOTE 1 TO THE AUDITED FINANCIAL STATEMENTS FOR FURTHER DISCUSSION OF THE ACCOUNTING POLICIES USED. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. THE VILLAGE OF ARMADA HAD AN OUTSTANDING LOAN BALANCE OF $4,190,907 UNDER THE CAPITALIZATION GRANTS FOR CLEAN WATER STATE REVOLVING FUND (CFDA #66.458) AS OF MARCH 31, 2022.

Finding Details

Finding 2022-004
INTERNAL CONTROLS OVER FEDERAL PROGRAMS - CONDITION: THE VILLAGE DOES NOT HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CRITERIA: THE UNIFORM GUIDANCE REQUIRES AUDITEES TO HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CAUSE: THE VILLAGE DOES NOT ROUTINELY HAVE FEDERAL GRANTS AND HAS NOT FORMALLY DOCUMENTED ITS POLICIES AND PROCEDURES. EFFECT: THE VILLAGE MAY FAIL TO TIMELY DETECT AND CORRECT NONCOMPLIANCE WITHOUT A DOCUMENTED AND COMMUNICATED POLICIES AND PROCEDURE FOR FEDERAL PROGRAMS. RECOMMENDATION: THE VILLAGE SHOULD CONSIDER DOCUMENTING THE CURRENT POLICIES AND PROCEDURES TO FORMALIZE INTERNAL CONTROLS OVER FEDERAL PROGRAMS AND FINANCIAL REPORTING. MANAGEMENT'S RESPONSE: THE VILLAGE HAS BEEN MADE AWARE OF THE REQUIREMENTS AND WILL DEVELOP FORMAL POLICIES AND PROCEDURES OVER FEDERAL PROGRAMS THAT ARE APPROPRIATE FOR THE SIZE OF THE VILLAGE.
Finding 2022-004
INTERNAL CONTROLS OVER FEDERAL PROGRAMS - CONDITION: THE VILLAGE DOES NOT HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CRITERIA: THE UNIFORM GUIDANCE REQUIRES AUDITEES TO HAVE WRITTEN POLICIES AND PROCEDURES FOR INTERNAL CONTROLS OVER FEDERAL PROGRAMS. CAUSE: THE VILLAGE DOES NOT ROUTINELY HAVE FEDERAL GRANTS AND HAS NOT FORMALLY DOCUMENTED ITS POLICIES AND PROCEDURES. EFFECT: THE VILLAGE MAY FAIL TO TIMELY DETECT AND CORRECT NONCOMPLIANCE WITHOUT A DOCUMENTED AND COMMUNICATED POLICIES AND PROCEDURE FOR FEDERAL PROGRAMS. RECOMMENDATION: THE VILLAGE SHOULD CONSIDER DOCUMENTING THE CURRENT POLICIES AND PROCEDURES TO FORMALIZE INTERNAL CONTROLS OVER FEDERAL PROGRAMS AND FINANCIAL REPORTING. MANAGEMENT'S RESPONSE: THE VILLAGE HAS BEEN MADE AWARE OF THE REQUIREMENTS AND WILL DEVELOP FORMAL POLICIES AND PROCEDURES OVER FEDERAL PROGRAMS THAT ARE APPROPRIATE FOR THE SIZE OF THE VILLAGE.