FAC Explorer

Audit 336249

FY End
2024-06-30
Total Expended
$3.55M
Findings
4
Programs
9
Organization: City of Port Huron, Michigan (MI)
Year: 2024 Accepted: 2025-01-07
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517983 2024-002 Material Weakness Yes I
517984 2024-002 Material Weakness Yes I
1094425 2024-002 Material Weakness Yes I
1094426 2024-002 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $192,162 - 0
14.218 Covid-19, Community Development Block Grants/entitlement Grants $111,219 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $99,016 Yes 1
14.239 Home Investment Partnerships Program $69,319 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $20,116 - 0
97.067 Homeland Security Grant Program $11,332 - 0
16.710 Public Safety Partnership and Community Policing Grants $10,383 - 0
16.607 Bulletproof Vest Partnership Program $5,843 - 0
20.600 State and Community Highway Safety $5,621 - 0

Contacts

Name Title Type
GL6FPGJ7MM26 Lee Ward Auditee
8109849727 Kristin Hunt 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 City of Port Huron, Michigan (the “City”) under programs of the federal government for the year ended June 30, 2024. 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 basic financial statements. 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 and frequently asked questions as outlined in the 2020 Compliance Supplement Addendum. 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 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 2024-002
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year SLFRP2024 2001 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023 002 Criteria Per 2 CFR 200.214 non federal entities are subject to the non procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition The City could not provide evidence that it performed a check to verify vendors or subrecipients were not suspended or debarred. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context During the fiscal year, the City entered into contracts/agreements with 11 contractors and subrecipients. and was unable to provide evidence that the check for suspension and debarment was completed prior to entering into a contract/agreement with them. Subsequently, the City did complete the search on Sam.gov and retained evidence to support that the contractor was not suspended of debarred, thereby creating no questioned costs. Cause and Effect The City did not have controls to perform the search for suspended or debarred entities prior to entering into a contract or subrecipient agreement, as a result the City did not comply with the requirements under 2 CFR 214. Recommendation We recommend the City implement controls to ensure that complete the search for whether a contractor/subrecipient is suspended or debarred prior to entering into a contract/agreement with a contractor or subrecipient and retain evidence of the results of the search. Views of Responsible Officials and Corrective Action Plan The City of Port Huron will implement a new process for approval of all invoices related to ARPA grant expenses. This includes a check for suspension and debarment prior to any invoices approval and appropriate documentation.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year SLFRP2024 2001 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023 002 Criteria Per 2 CFR 200.214 non federal entities are subject to the non procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition The City could not provide evidence that it performed a check to verify vendors or subrecipients were not suspended or debarred. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context During the fiscal year, the City entered into contracts/agreements with 11 contractors and subrecipients. and was unable to provide evidence that the check for suspension and debarment was completed prior to entering into a contract/agreement with them. Subsequently, the City did complete the search on Sam.gov and retained evidence to support that the contractor was not suspended of debarred, thereby creating no questioned costs. Cause and Effect The City did not have controls to perform the search for suspended or debarred entities prior to entering into a contract or subrecipient agreement, as a result the City did not comply with the requirements under 2 CFR 214. Recommendation We recommend the City implement controls to ensure that complete the search for whether a contractor/subrecipient is suspended or debarred prior to entering into a contract/agreement with a contractor or subrecipient and retain evidence of the results of the search. Views of Responsible Officials and Corrective Action Plan The City of Port Huron will implement a new process for approval of all invoices related to ARPA grant expenses. This includes a check for suspension and debarment prior to any invoices approval and appropriate documentation.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year SLFRP2024 2001 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023 002 Criteria Per 2 CFR 200.214 non federal entities are subject to the non procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition The City could not provide evidence that it performed a check to verify vendors or subrecipients were not suspended or debarred. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context During the fiscal year, the City entered into contracts/agreements with 11 contractors and subrecipients. and was unable to provide evidence that the check for suspension and debarment was completed prior to entering into a contract/agreement with them. Subsequently, the City did complete the search on Sam.gov and retained evidence to support that the contractor was not suspended of debarred, thereby creating no questioned costs. Cause and Effect The City did not have controls to perform the search for suspended or debarred entities prior to entering into a contract or subrecipient agreement, as a result the City did not comply with the requirements under 2 CFR 214. Recommendation We recommend the City implement controls to ensure that complete the search for whether a contractor/subrecipient is suspended or debarred prior to entering into a contract/agreement with a contractor or subrecipient and retain evidence of the results of the search. Views of Responsible Officials and Corrective Action Plan The City of Port Huron will implement a new process for approval of all invoices related to ARPA grant expenses. This includes a check for suspension and debarment prior to any invoices approval and appropriate documentation.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year SLFRP2024 2001 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023 002 Criteria Per 2 CFR 200.214 non federal entities are subject to the non procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition The City could not provide evidence that it performed a check to verify vendors or subrecipients were not suspended or debarred. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context During the fiscal year, the City entered into contracts/agreements with 11 contractors and subrecipients. and was unable to provide evidence that the check for suspension and debarment was completed prior to entering into a contract/agreement with them. Subsequently, the City did complete the search on Sam.gov and retained evidence to support that the contractor was not suspended of debarred, thereby creating no questioned costs. Cause and Effect The City did not have controls to perform the search for suspended or debarred entities prior to entering into a contract or subrecipient agreement, as a result the City did not comply with the requirements under 2 CFR 214. Recommendation We recommend the City implement controls to ensure that complete the search for whether a contractor/subrecipient is suspended or debarred prior to entering into a contract/agreement with a contractor or subrecipient and retain evidence of the results of the search. Views of Responsible Officials and Corrective Action Plan The City of Port Huron will implement a new process for approval of all invoices related to ARPA grant expenses. This includes a check for suspension and debarment prior to any invoices approval and appropriate documentation.