FAC Explorer

Audit 342365

FY End
2022-09-30
Total Expended
$921,410
Findings
6
Programs
8
Organization: City of Wyandotte, Michigan (MI)
Year: 2022 Accepted: 2025-02-13
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523087 2022-002 Material Weakness - P
523088 2022-003 Material Weakness - L
523089 2022-002 Material Weakness - P
1099529 2022-002 Material Weakness - P
1099530 2022-003 Material Weakness - L
1099531 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
97.044 Assistance to Firefighters Grant $504,636 Yes 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $125,687 - 2
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $92,551 - 0
14.218 Community Development Block Grants/entitlement Grants $80,468 - 1
10.569 Emergency Food Assistance Program (food Commodities) $79,520 - 0
20.205 Highway Planning and Construction $26,192 - 0
97.067 Homeland Security Grant Program $6,353 - 0
10.664 Cooperative Forestry Assistance $6,003 - 0

Contacts

Name Title Type
VUKBRAEGTYG9 Robert McMahon Auditee
7343244539 Kristin Hunt Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Wyandotte, Michigan (the “City”) under programs of the federal government for the year ended September 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 the 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. 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. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance. The grantee received the following noncash assistance during the year ended September 30, 2022, which is included in the schedule of expenditures of federal awards: See the Notes to the SEFA for chart/table

Finding Details

Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000, and, therefore, a single audit was not needed. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Finding 2022-003
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type: Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - In accordance with the Closeout Agreement dated July 20, 2012, the City is required to annually provide a report to the U.S. Environmental Protection Agency (EPA) on the use of the program income from the Assistance Agreement. Condition - The City did not submit the required annual report related to use of program income. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Program income was generated from an award that was closed out in 2012. The City first used the program income during the fiscal year ending September 30, 2022, with additional program income used during the fiscal year ending September 30, 2023. Cause and Effect - Since the program income was not used for the first ten years after the closeout of the award, the City did not have adequate oversight over original program requirements. As a result, they missed the reporting requirement. Recommendation - We recommend the City implement a process to ensure all reporting requirements are tracked and completed Views of Responsible Officials and Planned Corrective Actions - The City will work with the EPA to determine how to report the use of program income.
Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000, and, therefore, a single audit was not needed. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000, and, therefore, a single audit was not needed. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Finding 2022-003
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type: Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - In accordance with the Closeout Agreement dated July 20, 2012, the City is required to annually provide a report to the U.S. Environmental Protection Agency (EPA) on the use of the program income from the Assistance Agreement. Condition - The City did not submit the required annual report related to use of program income. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Program income was generated from an award that was closed out in 2012. The City first used the program income during the fiscal year ending September 30, 2022, with additional program income used during the fiscal year ending September 30, 2023. Cause and Effect - Since the program income was not used for the first ten years after the closeout of the award, the City did not have adequate oversight over original program requirements. As a result, they missed the reporting requirement. Recommendation - We recommend the City implement a process to ensure all reporting requirements are tracked and completed Views of Responsible Officials and Planned Corrective Actions - The City will work with the EPA to determine how to report the use of program income.
Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000, and, therefore, a single audit was not needed. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.