FAC Explorer

Audit 388372

FY End
2025-06-30
Total Expended
$17.59M
Findings
3
Programs
13
Organization: City of Sault Ste. Marie (MI)
Year: 2025 Accepted: 2026-02-20
Auditor: ROSLUND PRESTAGE & COMPANY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1174809 2025-001 Material Weakness Yes I
1174810 2025-001 Material Weakness Yes I
1174811 2025-001 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $9.90M Yes 0
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $4.30M Yes 0
66.458 CLEAN WATER STATE REVOLVING FUND $779,329 Yes 0
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $660,601 Yes 1
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $71,568 Yes 0
10.664 COOPERATIVE FORESTRY ASSISTANCE $47,381 Yes 0
20.505 METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH $28,772 Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $22,000 Yes 0
20.516 JOB ACCESS AND REVERSE COMMUTE PROGRAM $15,561 Yes 0
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $6,530 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $4,140 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $3,005 Yes 0
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $325 Yes 0

Contacts

Name Title Type
EJBZKKXGV2C5 Kali Perron Auditee
9066325725 Christina Schaub Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of City of Sault Ste. Marie (the City) under programs of the federal government for the year ended June 30, 2025. 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 its financial position or changes in net position of the City.
Federal expenditures are reported as revenues in the following funds in the financial statements of the City: Fund Amount General Fund 147,017 Capital Projects Fund 6,095,169 Road Contingency Fund 22,000 Other Special Revenue Fund 319,930 Sewer Capital Reserve Fund 9,720,121 Water Capital Reserve Fund 429,146 Total federal revenues per financial statements 16,733,383Plus: Loan - 2024 Water supply and sewer disposal system revenue bonds - series 2024 779,329 Plus: Loan - 2025 Water supply and sewer disposal system revenue bonds - series 2025A 1,041,612 Less: Prior year unavailable revenues (963,172) Federal revenues subject to single audit 17,591,152

Finding Details

Finding 2025-001
2025-001 – Suspension and Debarment (repeat comment) Finding Type: Significant deficiency in internal control over compliance Program: ALN 97.044 – Assistance to Firefighters Grant • Grant number EMW-2022-FG-01118 • Grant number EMW-2023-FG-03417 • Grant number EMW-2023-FG-02529 Criteria: As required by 2 CFR 200.214, Non-Federal entities are subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards. Condition: The vendors used for these grants were not checked for suspension and debarment prior to execution of the contract. Cause/Effect: Although a policy has been adopted requiring a check the suspension and debarment status prior to entering into contracts, the internal control over this process was not operating as designed. Questioned Cost: None. Recommendation: We recommend that the City update procedures to ensure that a check of suspension and debarment status is obtained prior to entering into a covered transaction. View of Responsible Official: Management is in agreement with this recommendation.