FAC Explorer

Audit 27263

FY End
2022-06-30
Total Expended
$1.46M
Findings
2
Programs
5
Organization: City of Adrian (MI)
Year: 2022 Accepted: 2022-11-28
Auditor: Clark Schaefer Hackett

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20172 2022-001 Significant Deficiency - L
596614 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $623,512 Yes 1
97.044 Assistance to Firefighters Grant $559,265 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $124,805 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $14,154 - 0
16.607 Bulletproof Vest Partnership Program $2,200 - 0

Contacts

Name Title Type
JWMFEZN8X4M7 Nathan Owen Auditee
5172644842 Brian Mosier Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and is presented on the modified accrual basis of accounting, which is described in Note 1(c) to the City's Comprehensive Annual Financial Report. Such expenditures are recognized following the costs principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Adrian, Michigan (the City) under programs of the federal government for the year ended June 30, 2022. 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 the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Finding Details

Finding 2022-001
Criteria: U.S Department of the Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund expenditures. Condition: The City had errors in the accuracy of the amounts included in the submitted reports that did not reconcile with the general ledger amounts or the Schedule of Expenditures of Federal Awards. Context: We reviewed the interim report submitted that reported total cumulative expenditures of $2,164,828 while the underlying support totaled $235,296 in cumulative expenditures for the reporting period. The City over reported total cumulative expenditures on the interim report. Cause: The City misinterpreted guidance presented in a webinar. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City implement procedures to ensure the City reconciles between the underlying support, general ledger, and what is being reported.
Finding 2022-001
Criteria: U.S Department of the Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund expenditures. Condition: The City had errors in the accuracy of the amounts included in the submitted reports that did not reconcile with the general ledger amounts or the Schedule of Expenditures of Federal Awards. Context: We reviewed the interim report submitted that reported total cumulative expenditures of $2,164,828 while the underlying support totaled $235,296 in cumulative expenditures for the reporting period. The City over reported total cumulative expenditures on the interim report. Cause: The City misinterpreted guidance presented in a webinar. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City implement procedures to ensure the City reconciles between the underlying support, general ledger, and what is being reported.