FAC Explorer

Audit 341278

FY End
2024-06-30
Total Expended
$7.72M
Findings
2
Programs
3
Organization: City of Lincoln Park, Michigan (MI)
Year: 2024 Accepted: 2025-02-05
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522008 2024-004 Material Weakness - I
1098450 2024-004 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.57M Yes 1
14.218 Community Development Block Grants/entitlement Grants $1.15M - 0
21.016 Equitable Sharing $6,383 - 0

Contacts

Name Title Type
EHDMMWJY1735 Lisa Griggs Auditee
3133861800 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 the City of Lincoln Park, 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. 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 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 2024-004
Assistance Listing Number, Federal Agency, and Program Name - ALN 21.027, Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP 2024-2001 Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.214, nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180.300 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 complied with the above regulations. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Recipients of federal awards must have procedures in place to verify that a contractor with which they plan to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause and Effect - The City did not have a procedure in place to review contractors and entered into covered agreements without knowing whether the contractors were debarred, suspended, or otherwise excluded. Recommendation - We recommend that an additional internal process be put in place to ensure all vendors utilized with federal funds are not suspended or debarred. Views of Responsible Officials and Corrective Action Plan - The City will ensure that all future contracts awarded under this program are in compliance and will have contractors sign to verify that they are in compliance.
Finding 2024-004
Assistance Listing Number, Federal Agency, and Program Name - ALN 21.027, Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP 2024-2001 Pass-through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.214, nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180.300 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 complied with the above regulations. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Recipients of federal awards must have procedures in place to verify that a contractor with which they plan to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause and Effect - The City did not have a procedure in place to review contractors and entered into covered agreements without knowing whether the contractors were debarred, suspended, or otherwise excluded. Recommendation - We recommend that an additional internal process be put in place to ensure all vendors utilized with federal funds are not suspended or debarred. Views of Responsible Officials and Corrective Action Plan - The City will ensure that all future contracts awarded under this program are in compliance and will have contractors sign to verify that they are in compliance.