FAC Explorer

Audit 34471

FY End
2022-12-31
Total Expended
$12.61M
Findings
4
Programs
9
Organization: County of Wexford, Michigan (MI)
Year: 2022 Accepted: 2023-06-27
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30535 2022-001 Significant Deficiency - I
30536 2022-002 Significant Deficiency - L
606977 2022-001 Significant Deficiency - I
606978 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $10.64M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $960,588 Yes 2
15.226 Payments in Lieu of Taxes $137,692 - 0
10.665 Schools and Roads - Grants to States $118,637 - 0
93.563 Child Support Enforcement $44,059 - 0
97.042 Emergency Management Performance Grants $26,502 - 0
97.012 Boating Safety Financial Assistance $8,900 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $4,748 - 0
93.658 Foster Care_title IV-E $3,232 - 0

Contacts

Name Title Type
ELBVKK7YL1T1 Joe Porterfield Auditee
2317799453 Paul Matz, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: COMPONENT UNITS NOT INCLUDED IN THIS REPORT Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the County of Wexford, Michigan (the County) under programs of the federal government for the year ended December 31, 2022. 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 County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. The County's reporting entity is defined in Note 1 of the County's financial statements. The County's financial statements include the operations of four component units that are not included in this report as discussed in Note 4 below. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County'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. Pass-through entity identifying numbers are presented where available. Federal expenditures from the Schedule reconcile to federal grant revenues, a component of intergovernmental grant revenue in the December 31, 2022 basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The basic financial statements of the County include four discretely presented component units that have engaged other auditors to perform the audits of their financial statements. The Cadillac-Wexford Transit Authority, Wexford County Airport Authority, Cadillac-Wexford Public Library and Wexford County Road Commission reported federal revenue of $1,537,002, $247,356, $0 and $877,804, respectively. These amounts are not included on the Schedule, as those organizations were separately audited.
Title: COMMUNITY FACILITIES LOAN Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the County of Wexford, Michigan (the County) under programs of the federal government for the year ended December 31, 2022. 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 County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County. The County's reporting entity is defined in Note 1 of the County's financial statements. The County's financial statements include the operations of four component units that are not included in this report as discussed in Note 4 below. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the County'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. Pass-through entity identifying numbers are presented where available. Federal expenditures from the Schedule reconcile to federal grant revenues, a component of intergovernmental grant revenue in the December 31, 2022 basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The outstanding balance on the Community Facilities Loan was $10,459,000 as of December 31, 2022.

Finding Details

Finding 2022-001
2022-001 ? Suspension and Debarment Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the County. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. Condition. The County did not verify that any of their vendors over $25,000 were not suspended or debarred from doing business with the County. Cause. Management has indicated that it was not aware of the requirement to check vendors participating in federal award programs for active exclusions from federal award work. Effect. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the County verify that any of their vendors over $25,000 spent with federal funds were not suspended or debarred. View of Responsible Officials. We concur with the audit assessment regarding this matter. Moving forward all vendors will be verified.
Finding 2022-002
2022-002 ? Report Reconciliation Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Criteria. As part of annual reporting requirements, grantees are expected to report current period costs that either agree or can be reconciled to the amount reported on the schedule of expenditures of federal awards (SEFA) and the grantee's accounting records. Condition. Annual reporting reviewed was neither in agreement, nor could be reconciled to, the amounts reported on the SEFA or the County's general ledger. Cause. There appears to be a lack of understanding of the proper reporting requirements related to current period cost reporting. Effect. The County is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the County's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the County implement necessary internal controls to ensure reporting agrees or can be reconciled to the accounting records and the SEFA. View of Responsible Officials. We concur with the audit assessment regarding this matter. The State and Local Fiscal Recovery Funds program has been modified after money was allocated. The reporting instructions for claiming revenue loss provisions have been unclear.
Finding 2022-001
2022-001 ? Suspension and Debarment Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Procurement, Suspension and Debarment). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Criteria. A recipient of federal awards is required to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the County. Such procedures are required whenever the amount disbursed to a single vendor in a given year is expected to be at least $25,000. Condition. The County did not verify that any of their vendors over $25,000 were not suspended or debarred from doing business with the County. Cause. Management has indicated that it was not aware of the requirement to check vendors participating in federal award programs for active exclusions from federal award work. Effect. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the County verify that any of their vendors over $25,000 spent with federal funds were not suspended or debarred. View of Responsible Officials. We concur with the audit assessment regarding this matter. Moving forward all vendors will be verified.
Finding 2022-002
2022-002 ? Report Reconciliation Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds (SLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027. Criteria. As part of annual reporting requirements, grantees are expected to report current period costs that either agree or can be reconciled to the amount reported on the schedule of expenditures of federal awards (SEFA) and the grantee's accounting records. Condition. Annual reporting reviewed was neither in agreement, nor could be reconciled to, the amounts reported on the SEFA or the County's general ledger. Cause. There appears to be a lack of understanding of the proper reporting requirements related to current period cost reporting. Effect. The County is exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the County's internal controls. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the County implement necessary internal controls to ensure reporting agrees or can be reconciled to the accounting records and the SEFA. View of Responsible Officials. We concur with the audit assessment regarding this matter. The State and Local Fiscal Recovery Funds program has been modified after money was allocated. The reporting instructions for claiming revenue loss provisions have been unclear.