FAC Explorer

Audit 377112

FY End
2025-06-30
Total Expended
$4.90M
Findings
3
Programs
2
Organization: City of Marine City (MI)
Year: 2025 Accepted: 2025-12-22
Auditor: MCBRIDE-MANLEY & COMPANY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1166200 2025-003 Material Weakness Yes I
1166201 2025-003 Material Weakness Yes I
1166202 2025-003 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $4.51M Yes 1
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $1,285 Yes 0

Contacts

Name Title Type
Z2QYRN8EPEY3 Katy Posey Auditee
8106765256 Curtis McBride Auditor
No contacts on file

Notes to SEFA

Designates Major Federal Financial Assistance Program
The Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Marine City and is presented on the accrual basis of accounting. The financial statements for the related funds are reported on the modified-accrual method. See Note 1 to the financial statements for further discussion of the City's accounting policies. The information in this schedule is presented in accordance with the requirements of the Uniform Grant Guidance. Therefore, some amounts presented in this schedule may differ from those amounts presented in, or used in the preparation of, the basic financial statements.
The City of Marine City elects to use the 10% de minimis indirect cost rate where available.

Finding Details

Finding 2025-003
CRITERIA: Nonfederal entities are prohibited from contracting with or making subawards to parties that are suspended or debarred. This includes contracts for goods awarded under a nonprocurement transaction expected to equal or exceed $25,000. CONDITION: The City did not check excluded parties list or seek other confirmation to confirm vendors expected to equal or exceed $25,000 were not suspended or debarred. CAUSE: Management did not carefully review the grant policy for compliance requirements, including changes in accounting processes and procedures. EFFECT: The City could pay a vendor with federal funds who is not eligible for reimbursements with federal funds and be required to return grant funds. RECOMMENDATION: The City should carefully review the new policies and procedures related to purchasing and consider making a checklist or implementing additional workflows in the accounting system to ensure compliance. RESPONSE: The practice of checking the debarment list had occurred in the past; the keeping of a "proof of practice" was not done. Going forward, this practice will be documented.