FAC Explorer

Audit 352186

FY End
2024-09-30
Total Expended
$5.70M
Findings
2
Programs
4
Organization: City of Dowagiac (MI)
Year: 2024 Accepted: 2025-04-01
Auditor: Yeo & Yeo Cpa's and Advisors

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553590 2024-002 Significant Deficiency - P
1130032 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $4.69M Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $300,619 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $291,680 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $61,931 - 0

Contacts

Name Title Type
Z1SEMRBAPDR3 Kate Jefferson Auditee
2697822195 Jamie Rivette Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis and modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City under programs of the federal government for the year ended September 30, 2024. 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 City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
Title: Loans Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis and modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Assistance listing number 10.760 has loan balances of $1,159,963 for the Sewage Disposal System Revenue Bond Series 2022A and $5,073,000 for the Sewage Disposal System Revenue Bond Series 2022B at September 30, 2024.
Title: Reconciliation to the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis and modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. See note 4 on the Notes to the Schedule of Expenditures of Federal Awards for chart
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis and modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. No amounts were provided to subrecipients

Finding Details

Finding 2024-002
Finding 2024-002 - Significant Deficiency and Noncompliance – Lack of Required Uniform Guidance Policies and Procedures Program Information: Water and Waste Disposal Systems for Rural Communities, U.S. Department of Agriculture, 92-06 / 92-07, 2022, ALN #10.760 Criteria: Written procedures specific to federal awards are required to comply with Uniform Guidance, including written procedures for financial management systems, payments, allowable costs, period of performance, matching or cost sharing, program income, procurement, equipment and real property, supplies, copyrights, subawards or debarred and suspended parties, monitoring and reporting program performance, financial reporting, retention and access requirements for records, cash management, and payroll or federal timekeeping. Condition: The City did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Questioned Costs: None. Cause and Effect: The City has not historically received a significant amount of federal funding, therefore they have not implemented written policies and procedures specific to Uniform Guidance. While no noncompliance was noted during the audit, the lack of written federal policies and procedures that are in compliance with Uniform Guidance increases the risk of noncompliance within federal programs. Recommendation: We recommend that the City develop and adopt written policies and procedures that are in compliance with Uniform Guidance. Views of responsible officials: Management is in agreement with the finding. Corrective action plan: See attached.
Finding 2024-002
Finding 2024-002 - Significant Deficiency and Noncompliance – Lack of Required Uniform Guidance Policies and Procedures Program Information: Water and Waste Disposal Systems for Rural Communities, U.S. Department of Agriculture, 92-06 / 92-07, 2022, ALN #10.760 Criteria: Written procedures specific to federal awards are required to comply with Uniform Guidance, including written procedures for financial management systems, payments, allowable costs, period of performance, matching or cost sharing, program income, procurement, equipment and real property, supplies, copyrights, subawards or debarred and suspended parties, monitoring and reporting program performance, financial reporting, retention and access requirements for records, cash management, and payroll or federal timekeeping. Condition: The City did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Questioned Costs: None. Cause and Effect: The City has not historically received a significant amount of federal funding, therefore they have not implemented written policies and procedures specific to Uniform Guidance. While no noncompliance was noted during the audit, the lack of written federal policies and procedures that are in compliance with Uniform Guidance increases the risk of noncompliance within federal programs. Recommendation: We recommend that the City develop and adopt written policies and procedures that are in compliance with Uniform Guidance. Views of responsible officials: Management is in agreement with the finding. Corrective action plan: See attached.