FAC Explorer

Audit 407449

FY End
2025-12-31
Total Expended
$1.62M
Findings
1
Programs
4
Organization: City of Harper Woods (MI)
Year: 2025 Accepted: 2026-07-20
Auditor: YEO & YEO CPAS & ADVISORS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1224030 2025-002 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
66.468 DRINKING WATER STATE REVOLVING FUND $915,092 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $542,475 Yes 0
20.205 HIGHWAY PLANNING AND CONSTRUCTION $162,506 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $44 Yes 0

Contacts

Name Title Type
ZRAEVR7T6XC7 Maria Nawrocki Auditee
3133432500 Jamie Rivette Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Harper Woods (the City) under programs of the federal government for the year ended December 31, 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.
Assistance listing number 66.468 has loan balances of $915,092 for the Drinking Water State Revolving Fund Loan #7829-01 at December 31, 2025.
The following table describes the reconciliation of the federal revenue per the financial statements to the expenditures reported in the Schedule: Federal revenue per the financial statements Governmental funds $ 679,690 Reconciling items Change in deferred inflows 294,307 DWSRF loan proceeds recognized as debt in the proprietary funds 915,092 Prior year adjustment to federal grants (AL 14.218) (268,972) Total expenditures of federal award per the Schedule $ 1,620,117 The prior year adjustment to federal grants related to assistance listing number 14.218 is due to federal revenue that should have been recorded in the prior fiscal year. Therefore, it is properly excluded from the current year Schedule but is recorded as federal revenue in the current year financial statements.
There were no amounts provided to subrecipients.

Finding Details

Finding 2025-002
Program Information: Drinking Water State Revolving Fund, 7829-01, 2024, ALN #66.468 Criteria: Written procedures specific to federal awards are required to comply with Uniform Guidance, including written procedures for financial management systems, payments, allowable costs, period of performance, matching or cost sharing, program income, procurement, equipment and real property, supplies, copyrights, subawards or debarred and suspended parties, monitoring and reporting program performance, financial reporting, retention and access requirements for records, cash management, and payroll or federal timekeeping. Condition: The City did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Questioned Costs: None. Cause and Effect: The City has not historically received a significant amount of federal funding, therefore they have not implemented written policies and procedures specific to Uniform Guidance. While no noncompliance was noted during the audit, the lack of written federal policies and procedures that are in compliance with Uniform Guidance increases the risk of noncompliance within federal programs. Recommendation: We recommend that the City develop and adopt written policies and procedures that are in compliance with Uniform Guidance. Views of responsible officials: Management is in agreement with the finding. Corrective action plan: See attached.