FAC Explorer

Audit 347702

FY End
2024-09-30
Total Expended
$2.83M
Findings
6
Programs
7
Organization: City of Wyandotte, Michigan (MI)
Year: 2024 Accepted: 2025-03-24
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529736 2024-002 Material Weakness Yes P
529737 2024-002 Material Weakness Yes P
529738 2024-003 Material Weakness Yes L
1106178 2024-002 Material Weakness Yes P
1106179 2024-002 Material Weakness Yes P
1106180 2024-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $522,106 Yes 2
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $148,474 - 1
16.922 Equitable Sharing Program $62,901 - 0
10.569 Emergency Food Assistance Program (food Commodities) $58,495 - 0
16.753 Congressionally Recommended Awards $39,464 - 0
14.218 Community Development Block Grants/entitlement Grants $35,014 - 0
90.404 Hava Election Security Grants $14,597 - 0

Contacts

Name Title Type
VUKBRAEGTYG9 Robert McMahon Auditee
7343244539 Timothy Standrew 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, 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 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 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. 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, 2024 that is included in the schedule of expenditures of federal awards: See the Notes to the SEFA for table.

Finding Details

Finding 2024-002
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 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, 2024, the City expended approximately $2,831,000 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 $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 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, 2024, the City expended approximately $2,831,000 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 $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
Finding 2024-003
Assistance Listing, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP0127 Pass through Entity - State of Michigan Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2023-004 Criteria - In accordance with the City's subrecipient agreement with the State of Michigan, the City is required to submit periodic project and expenditure reports. The state requires the City to submit quarterly reports as well as an annual progress report. Condition - The City submitted the required reports, but the amount reported as current expenditures in two of the quarterly reports submitted and as cumulative expenditures in the annual progress report were incorrect. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The City reported current period expenditures in the March 2024 quarterly report of $360,400, when the actual current period expenditures related to the project were $106,500. The City reported current period expenditures in the September 2024 quarterly report of $1,198,498, when the actual current period expenditures related to the project were $1,954,510. The City reported cumulative expenditures in the September 2024 annual progress report of $1,363,322, when the actual cumulative expenditures related to the project were $2,458,818. Cause and Effect - The City did not have controls in place to review the reports prior to submission. As a result, the reports were submitted with incorrect expenditure amounts. Recommendation - We recommend the City implement a process to ensure reports are reviewed for accuracy prior to submission. Views of Responsible Officials and Planned Corrective Actions - The City will review future reports to ensure the appropriate expenditures are disclosed.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 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, 2024, the City expended approximately $2,831,000 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 $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
Finding 2024-002
Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 21.027 SLFRP0127 Pass through Entity - ALN 21.027 - State of Michigan Finding Type - Material weakness Repeat Finding - Yes 2023-002 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, 2024, the City expended approximately $2,831,000 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 $148,474. ALN 21.027 - The expenditures reported on the SEFA were overstated by $2,078,221. The SEFA was also ovestated by $116,625 related to a non federal program. The errors noted above have been corrected on the SEFA as of September 30, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the overstatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City will review its process for identifying and communicating federal grant expenditures to its auditors.
Finding 2024-003
Assistance Listing, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - SLFRP0127 Pass through Entity - State of Michigan Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2023-004 Criteria - In accordance with the City's subrecipient agreement with the State of Michigan, the City is required to submit periodic project and expenditure reports. The state requires the City to submit quarterly reports as well as an annual progress report. Condition - The City submitted the required reports, but the amount reported as current expenditures in two of the quarterly reports submitted and as cumulative expenditures in the annual progress report were incorrect. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The City reported current period expenditures in the March 2024 quarterly report of $360,400, when the actual current period expenditures related to the project were $106,500. The City reported current period expenditures in the September 2024 quarterly report of $1,198,498, when the actual current period expenditures related to the project were $1,954,510. The City reported cumulative expenditures in the September 2024 annual progress report of $1,363,322, when the actual cumulative expenditures related to the project were $2,458,818. Cause and Effect - The City did not have controls in place to review the reports prior to submission. As a result, the reports were submitted with incorrect expenditure amounts. Recommendation - We recommend the City implement a process to ensure reports are reviewed for accuracy prior to submission. Views of Responsible Officials and Planned Corrective Actions - The City will review future reports to ensure the appropriate expenditures are disclosed.