FAC Explorer

Audit 299804

FY End
2022-06-30
Total Expended
$30.00M
Findings
2
Programs
22
Organization: City of Grand Rapids, Michigan (MI)
Year: 2022 Accepted: 2024-03-28
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387734 2022-001 Material Weakness - L
964176 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $16.44M Yes 0
14.218 Community Development Block Grants/entitlement Grants $4.15M Yes 0
14.231 Covid-19 - Emergency Solutions Grant Program $2.13M - 0
66.443 Reducing Lead in Drinking Water (sdwa 1459b) $1.59M Yes 1
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $1.41M Yes 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $840,070 - 0
14.239 Home Investment Partnerships Program $673,023 - 0
20.205 Highway Planning and Construction $389,733 - 0
93.767 Children's Health Insurance Program $364,315 - 0
14.231 Emergency Solutions Grant Program $357,949 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $261,519 - 0
66.460 Nonpoint Source Implementation Grants $243,149 - 0
97.044 Assistance to Firefighters Grant $236,151 - 0
16.582 Crime Victim Assistance/discretionary Grants $169,362 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $69,150 - 0
14.239 Covid-19 - Home Investment Partnerships Program $42,331 - 0
20.616 National Priority Safety Programs $30,293 - 0
16.609 Project Safe Neighborhoods $12,368 - 0
16.575 Crime Victim Assistance $11,812 - 0
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $11,594 - 0
20.600 State and Community Highway Safety $8,884 - 0
16.607 Bulletproof Vest Partnership Program $5,527 - 0

Contacts

Name Title Type
DBPMK7XDKTG3 Curt Reppuhn Auditee
6164563194 William Brickey 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 Grand Rapids, Michigan (the “City”) under programs of the federal government for the year ended June 30, 2022. 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 accrual basis of accounting. 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. 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. Local matching contributions are required under the provisions of certain federal grants. Local matching contributions include local sources of revenue and in-kind amounts consisting of direct services supplied by the city employees. For those programs requiring a local match, only the percentage of the program expenditures eligible for federal grant funds is reported. De Minimis Rate Used: N Rate Explanation: 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.

Finding Details

Finding 2022-001
Assistance Listing, Federal Agency, and Program Name - Assistance Listing 66.443, Environmental Protection Agency, Reducing Lead in Drinking Water Federal Award Identification Number and Year - OOE02968, 2021 Pass-through Entity - n/a Finding Type - Material weakness Repeat Finding - No Criteria - 2 CFR 200.508 requires the City to prepare appropriate financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510. The SEFA must list individual federal programs as required by 2 CFR 200.501(b)(1). The SEFA is the basis for the auditor determination of major programs as required by 2 CFR 200.518. Condition - The original SEFA prepared for audit purposes did not include all federal expenditures that should have been reported under ALN 66.443. Questioned Costs - None Identification of How Questioned Costs Were Computed - n/a Context - Approximately $864,000 of federal expenditures were not included in the original SEFA prepared for audit purposes under ALN 66.443. Cause and Effect - The City's controls over reconciling the SEFA to federal revenue did not detect the missing expenditures because federal revenue was not appropriately accrued by $864,000. As a result, ALN 66.443 was not originally identified as a major program. Recommendation - The City should review its controls over preparation of the SEFA and reconciling the SEFA to federal expenditures per the general ledger to ensure the appropriate amount of federal expenditures are reported on the SEFA. Views of Responsible Officials and Corrective Action Plan - We agree with the auditor’s recommendation. Changes have been implemented to ensure all programs with both federal and state/local funding will be examined to ensure correct expenditure by funding source is properly recorded.
Finding 2022-001
Assistance Listing, Federal Agency, and Program Name - Assistance Listing 66.443, Environmental Protection Agency, Reducing Lead in Drinking Water Federal Award Identification Number and Year - OOE02968, 2021 Pass-through Entity - n/a Finding Type - Material weakness Repeat Finding - No Criteria - 2 CFR 200.508 requires the City to prepare appropriate financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510. The SEFA must list individual federal programs as required by 2 CFR 200.501(b)(1). The SEFA is the basis for the auditor determination of major programs as required by 2 CFR 200.518. Condition - The original SEFA prepared for audit purposes did not include all federal expenditures that should have been reported under ALN 66.443. Questioned Costs - None Identification of How Questioned Costs Were Computed - n/a Context - Approximately $864,000 of federal expenditures were not included in the original SEFA prepared for audit purposes under ALN 66.443. Cause and Effect - The City's controls over reconciling the SEFA to federal revenue did not detect the missing expenditures because federal revenue was not appropriately accrued by $864,000. As a result, ALN 66.443 was not originally identified as a major program. Recommendation - The City should review its controls over preparation of the SEFA and reconciling the SEFA to federal expenditures per the general ledger to ensure the appropriate amount of federal expenditures are reported on the SEFA. Views of Responsible Officials and Corrective Action Plan - We agree with the auditor’s recommendation. Changes have been implemented to ensure all programs with both federal and state/local funding will be examined to ensure correct expenditure by funding source is properly recorded.