FAC Explorer

Audit 410257

FY End
2026-02-28
Total Expended
$2.42M
Findings
1
Programs
3
Organization: Village of Breckenridge (MI)
Year: 2026 Accepted: 2026-09-02
Auditor: BOGE WYBENGA & BRADLEY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1228621 2026-002 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $1.40M Yes 1
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $716,379 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $94,617 Yes 0

Contacts

Name Title Type
FMJNNUAR63A3 Bridget McPherson Auditee
9898423109 Adam House 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 Village of Breckenridge under programs of the federal government for the year ended February 28, 2026. 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 Village of Breckenridge, it is not intended to and does not present the financial position, changes in net position or cash flows of the Village of Breckenridge.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Village did not elect to use the 10% de minimis indirect cost rate.
None of the federal expenditures presented on the Schedule were provided to subrecipients.
The Village's total federal loans outstanding at February 28, 2026 were $8,129,196.

Finding Details

Finding 2026-002
Significant Deficiency – Suspended or Debarred Covered Transactions Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR 180.215. Condition: We noted that the Village did not have procedures in place to ensure that the sub-contractors were not suspended or debarred. Cause: This condition was caused by an oversight by management. Effect: As a result of this condition, the Village did not have controls in place to ensure compliance with the federal program. We did note that none of the contractors used on the Village's project were suspended or debarred. Recommendation: We recommend that the Village implement procedures to monitor contractors and subcontractors for any that are suspended or debarred. View of Responsible Officials: The Village will develop further procedures to ensure contractors used on projects are not suspended or debarred and retain documentation of the Village's contractor verifications.