Audit 290236

FY End
2023-06-30
Total Expended
$2.12M
Findings
6
Programs
8
Organization: City of Burton, Michigan (MI)
Year: 2023 Accepted: 2024-02-13

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
367063 2023-002 Material Weakness - L
367064 2023-002 Material Weakness - L
367065 2023-002 Material Weakness - L
943505 2023-002 Material Weakness - L
943506 2023-002 Material Weakness - L
943507 2023-002 Material Weakness - L

Contacts

Name Title Type
JL8YL7QGJA64 Brandy Ruth Auditee
8107431500 Pamela Hill Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule") includes the federal grant activity of the City of Burton, 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 financial statements except for ALN 66.458, Capitalization Grants for Clean Water State Revolving Fund (CWSRF). The CWSRF expenditures are reported on the cash basis per guidance from the pass-through entity. 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 did not use the de minimis cost rate.

Finding Details

Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.