FAC Explorer

Audit 364924

FY End
2024-12-31
Total Expended
$9.28M
Findings
6
Programs
6
Organization: City of Ishpeming, Michigan (MI)
Year: 2024 Accepted: 2025-08-26
Auditor: Anderson Tackman & Company Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574644 2024-002 Material Weakness - ABCI
574645 2024-002 Material Weakness - ABCI
574646 2024-002 Material Weakness - ABCI
1151086 2024-002 Material Weakness - ABCI
1151087 2024-002 Material Weakness - ABCI
1151088 2024-002 Material Weakness - ABCI

Programs

ALN Program Spent Major Findings
10.935 Urban Agriculture and Innovative Production $160,772 - 0
97.044 Assistance to Firefighters Grant $138,163 - 0
66.468 Drinking Water State Revolving Fund $50,000 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $28,346 Yes 1
20.600 State and Community Highway Safety $3,467 - 0
90.404 Hava Election Security Grants $2,923 - 0

Contacts

Name Title Type
MCBCM3RDR859 Grant Getschow Auditee
9064581091 Michael Grentz Auditor
No contacts on file

Notes to SEFA

Title: NOTE D – OVERSIGHT AGENCY: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 position, or cash flows of the City. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: For purposes of charging indirect costs to federal awards, the City has elected not to use the 10-percent de minimis indirect cost rate as permitted by §200.414 of the Uniform Guidance. Oversight agencies are assigned to entities that spend less than $50 million in total federal awards in during the fiscal year. The agency that provides the highest amount of direct awards listing on the Schedule is the Oversight Agency. If less than 25% of the City’s total spending comes from direct awards or there are no direct awards, the Oversight Agency is the agency that provides the highest amount of total funding. Based on this criterion, the Department of Treasury is the current year’s Oversight Agency.
Title: NOTE E – RECONCILIATION TO THE FINANCIAL STATEMENTS: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 position, or cash flows of the City. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: For purposes of charging indirect costs to federal awards, the City has elected not to use the 10-percent de minimis indirect cost rate as permitted by §200.414 of the Uniform Guidance. The following reconciles federal sources reported in the financial statements to the federal expenditures reported in the Schedule: Governmental Funds – Federal Sources $253,110 Proprietary Funds – Federal grant 8,893,514 Reconciling items: Less: Revenue related to prior year expenditures (18,567) Plus: Unavailable revenue 99,160 Plus: DWSRF - Federal loan draws 50,000 Rounding (1) TOTAL FEDERAL EXPENDITURES $9,277,216
Title: NOTE F – AMOUNTS PASSED THROUGH TO SUBRECIPIENTS: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 position, or cash flows of the City. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: For purposes of charging indirect costs to federal awards, the City has elected not to use the 10-percent de minimis indirect cost rate as permitted by §200.414 of the Uniform Guidance. The City had the following amounts passed through to subrecipients for the fiscal year ended December 31, 2024: Assistance Listing Number Program Title / Passed Through To Amount 10.935 COVID-19—Ishpeming Waste Diversion and Soil Rebuilding Initiative Partridge Creek Compost $116,385

Finding Details

Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.
Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.
Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.
Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.
Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.
Finding 2024-002
2024-002 – Written Policies and Procedures Required by the Uniform Guidance Federal Agency: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-through Entity: Michigan Department of Environment, Great Lakes, and Energy (EGLE); Michigan Department of Labor and Economic Opportunity Grant Number: A5823-01; A7708-01; E20240030 Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to: 1) advance payments and reimbursements; 2) determination of allowable costs; 3) compensation (personnel and benefits policies); 4) travel costs; and 5) procurement procedures. Pursuant to 2 CFR 200.303(a), an auditee must maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The City was not able to provide written policies and procedures related to the internal control structure over federal awards as required by 2 CFR section 200. Cause: Turnover of key employees. Effect: The City is not compliant with 2 CFR 200.303. Questioned Costs: None. Identification of How Questioned Costs were Computed: N/A Perspective: The City has processes in place to conform with the requirements of the Uniform Guidance; however, no formal written policies and procedures were able to be located during our audit. Repeat Finding: No. Recommendation: The City should formalize it’s policies and procedures related to federal award through presenting, adopting, and implementing written policies and procedures for internal controls over federal awards. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.