FAC Explorer

Audit 405838

FY End
2025-09-30
Total Expended
$1.08M
Findings
1
Programs
1
Organization: LAPEER COUNTY ROAD COMMISSION (MI)
Year: 2025 Accepted: 2026-06-30
Auditor: UHY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1221539 2025-004 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $1.08M Yes 1

Contacts

Name Title Type
N2S7YXLF3JH1 Destain Gingell Auditee
8106646272 Karen Shafik 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 Lapeer County Road Commission (the “Road Commission”) for the year ended September 30, 2025. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. For purposes of charging indirect costs to federal awards, the Road Commission has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Road Commission, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Road Commission.
The following schedule reconciles federal award activity reported in the financial statements to the expenditures of federal awards reported on the Schedule: See Notes to the SEFA for chart/table.

Finding Details

Finding 2025-004
Type: Significant deficiency in internal control over compliance and noncompliance. Criteria: The Uniform Guidance as described in 2 CFR, Part 200.303, non-federal entities receiving federal awards to establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Road Commission did not have formal written federal policies and procedures that document the processes and controls used to administer federal awards, including procedures for compliance with applicable federal program requirements under Uniform Guidance (2 CFR, Part 200.303). Cause: The Road Commission has historically relied on state compliance requirements and MDOT oversight, and has not formalized Federal Uniform Guidance requirements into its written policies and procedures. Management was not fully aware that Uniform Guidance requires entity-specific documented procedures in addition to compliance with state procurement laws. Effect: Without written federal policies and procedures, there is an increased risk that federal award requirements may not be consistently applied, monitored, or retained as institutional knowledge, particularly during changes in personnel or program responsibilities. Perspective: As a condition of accepting a federal award, the Road Commission should have required policies and procedures in place. Questioned Costs: None noted. Initial Year of Finding: 2025 Recommendation: We recommend the Road Commission develop and implement written federal policies and procedures addressing the administration of federal awards to ensure compliance with Uniform Guidance (2 CFR, Part 200). The policies should address the following key compliance areas; allowable costs, cash management, procurement, and conflicts of interest. In addition, we recommend that management review and modify the procedure policy to include all the necessary items outlined in the Uniform Guidance. View of Responsible Officials and Planned Corrective Plan: See corrective action plan.