FAC Explorer

Audit 334063

FY End
2024-06-30
Total Expended
$3.66M
Findings
2
Programs
5
Organization: City of Three Rivers, Michigan (MI)
Year: 2024 Accepted: 2024-12-20
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516254 2024-003 Significant Deficiency - L
1092696 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.00M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $734,552 Yes 0
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $32,000 - 0
45.312 National Leadership Grants $4,124 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $2,616 - 0

Contacts

Name Title Type
JFPNM1DKLUM7 Bobbi Schoon Auditee
2692731075 Nathan C. Baldermann, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH AGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Three Rivers, Michigan (the “City”) under programs of the federal government for the year ended June 30, 2024. 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the City's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the City has elected not to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The City receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: "See the Notes to the SEFA for chart/table."

Finding Details

Finding 2024-003
2024-003 - Reporting Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Housing and Urban Development - American Rescue Plan Act - MI Hope Grant (ALN 21.027); Passed through the Michigan State Housing Development Authority; All project numbers. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. During our audit procedures over the City's reporting process, we noted that there were discrepancies in the expenditures that were stated on the reports compared to the schedule of federal expenditures and the underlying accounting records. Cause. This condition is the result of lack of management oversight. Effect. The City followed grant requirements to complete the financial, performance and compliance reporting as required by Treasury, however, the reports were inaccurate. Questioned Costs. No costs were questioned as a result of this finding. Recommendation. We recommend that the City review reports submitted to ensure they are accurate. View of Responsible Officials. The Finance Director will review all financial documents before they are submitted to outside agencies to ensure accuracy. Responsible Official. Director of Finance and Administration Estimated Completion Date. June 30, 2025
Finding 2024-003
2024-003 - Reporting Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Reporting). Federal program(s) U.S. Department of Housing and Urban Development - American Rescue Plan Act - MI Hope Grant (ALN 21.027); Passed through the Michigan State Housing Development Authority; All project numbers. Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Condition. During our audit procedures over the City's reporting process, we noted that there were discrepancies in the expenditures that were stated on the reports compared to the schedule of federal expenditures and the underlying accounting records. Cause. This condition is the result of lack of management oversight. Effect. The City followed grant requirements to complete the financial, performance and compliance reporting as required by Treasury, however, the reports were inaccurate. Questioned Costs. No costs were questioned as a result of this finding. Recommendation. We recommend that the City review reports submitted to ensure they are accurate. View of Responsible Officials. The Finance Director will review all financial documents before they are submitted to outside agencies to ensure accuracy. Responsible Official. Director of Finance and Administration Estimated Completion Date. June 30, 2025