FAC Explorer

Audit 401866

FY End
2025-06-30
Total Expended
$2.89M
Findings
18
Programs
3
Organization: City Of Wakefield (MI)
Year: 2025 Accepted: 2026-05-20
Auditor: GABRIDGE & CO PLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1215182 2025-006 Material Weakness Yes L
1215183 2025-007 Material Weakness Yes P
1215184 2025-008 Material Weakness Yes L
1215185 2025-006 Material Weakness Yes L
1215186 2025-007 Material Weakness Yes P
1215187 2025-008 Material Weakness Yes L
1215188 2025-006 Material Weakness Yes L
1215189 2025-007 Material Weakness Yes P
1215190 2025-008 Material Weakness Yes L
1215191 2025-006 Material Weakness Yes L
1215192 2025-007 Material Weakness Yes P
1215193 2025-008 Material Weakness Yes L
1215194 2025-006 Material Weakness Yes L
1215195 2025-007 Material Weakness Yes P
1215196 2025-008 Material Weakness Yes L
1215197 2025-006 Material Weakness Yes L
1215198 2025-007 Material Weakness Yes P
1215199 2025-008 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $377,000 Yes 3
66.468 DRINKING WATER STATE REVOLVING FUND $336,000 Yes 3
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $4,000 Yes 3

Contacts

Name Title Type
CM5NHHNKJCL8 Robert Brown Auditee
9062295131 Joe Verlin Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Wakefield (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 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. The City’s reporting entity is defined in Note 1 of the City’s Audited Financial Statements.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the City's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. For USDA direct loan programs (ALN 10.760), the City reports the value of new loan proceeds received during the audit period as determined under 2 CFR 200.502. For the Drinking Water State Revolving Fund (DWSRF) program (ALN 66.468), which is a federal subaward loan passed through the Michigan Department of Environment, Great Lakes, and Energy, the City reports eligible project expenditures incurred under the DWSRF loan during the audit period in accordance with EPA program-specific guidance in the 2025 OMB Compliance Supplement. For FY2025, this includes eligible DWSRF costs incurred and accrued in accounts payable at June 30, 2025, even when the related loan proceeds were received subsequent to year-end, limited to the approved DWSRF loan amount. For purposes of charging indirect costs to federal awards, the City has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. No indirect costs were charged to the federal programs reported in the schedule. The City did not provide federal awards to subrecipients during the year ended June 30, 2025.
The following reconciles federal expenditures reported on the basic financial statements to the amount reported on the Schedule: SEE PAGE 81 OF THE PDF
The City had outstanding federal loan balances as of June 30, 2025, as follows: SEE PAGE 81 OF THE PDF

Finding Details

Finding 2025-006
2025-006 - Preparation of the Schedule of Expenditures of Federal Awards Finding Type: Material weakness in internal control over compliance. Criteria: The Uniform Guidance (2 CFR 200.302 and 2 CFR 200.510(b)) requires that non-Federal entities maintain records that adequately identify the source and application of Federal awards and prepare a Schedule of Expenditures of Federal Awards (SEFA) that is complete and accurate. Condition: The City did not prepare a Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended June 30, 2025. A complete and accurate SEFA was prepared by the external auditor during the audit process. Cause: This condition is the result of the City’s lack of procedures and internal controls to identify, track, and report Federal award activity necessary to prepare the SEFA. Effect: As a result of this condition, the City did not maintain adequate internal control over compliance related to Federal reporting requirements and was not able to ensure that all Federal expenditures were identified and reported in accordance with Uniform Guidance. Recommendation: The City should implement procedures to identify and track Federal awards and expenditures and prepare a complete and accurate SEFA in accordance with Uniform Guidance requirements. Management Response: See Corrective Action Plan.
Finding 2025-007
2025-007 - Lack of Documented Federal Policies and Procedures Finding Type: Material weakness in internal control over compliance. Criteria: The Uniform Guidance (2 CFR 200.303) requires that non-Federal entities establish and maintain effective internal control over Federal awards to provide reasonable assurance that the awards are managed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Federal internal control guidance also contemplates that such controls be documented and maintained. Condition: The City did not maintain documented policies and procedures over its Federal awards as of June 30, 2025. No formal documentation was available to evidence the design and implementation of internal controls over compliance. Cause: This condition is the result of the City’s lack of formal procedures to document and maintain internal controls over compliance for Federal awards. Effect: As a result of this condition, the City did not maintain adequate internal control over compliance to provide reasonable assurance that Federal awards were managed in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recommendation: The City should establish, document, and implement formal policies and procedures over Federal awards to ensure compliance with Uniform Guidance requirements. Management Response: See Corrective Action Plan.
Finding 2025-008
2025-008 - Late Submission of Single Audit Reporting Package and Data Collection Form Finding Type: Noncompliance. Criteria: The Uniform Guidance (2 CFR 200.512(a)(1)) requires that the audit, data collection form, and reporting package be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. For the fiscal year ended June 30, 2025, the required submission deadline was March 31, 2026. Condition: The City did not submit the data collection form and reporting package to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Cause: This condition is the result of delays in completing the audit and finalizing the reporting package for submission to the Federal Audit Clearinghouse. Effect: As a result of this condition, the City was not in compliance with Uniform Guidance reporting requirements. Continued noncompliance may result in increased Federal oversight. Recommendation: The City should implement procedures to ensure that the data collection form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Management Response: See Corrective Action Plan.