FAC Explorer

Audit 42066

FY End
2022-06-30
Total Expended
$5.93M
Findings
2
Programs
12
Organization: City of Port Huron, Michigan (MI)
Year: 2022 Accepted: 2022-12-08
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49912 2022-002 Material Weakness - I
626354 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.85M Yes 1
59.075 Covid-19 - Shuttered Venue Operators Grant Program $865,460 Yes 0
14.218 Community Development Block Grants/entitlement Grants $275,985 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $51,031 - 0
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $42,849 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $19,789 - 0
14.239 Home Investment Partnerships Program $9,350 - 0
97.067 Homeland Security Grant Program $6,297 - 0
16.607 Bulletproof Vest Partnership Program $3,635 - 0
16.710 Public Safety Partnership and Community Policing Grants $2,282 - 0
20.600 State and Community Highway Safety $1,512 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $98 - 0

Contacts

Name Title Type
GL6FPGJ7MM26 Edward Brennan Auditee
8109849728 David Herrington Auditor
No contacts on file

Notes to SEFA

Title: Disaster Grants Public Assistance Program (ALN 97.036) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activityof the City of Port Huron, Michigan under programs of the federal government for the year ended June 30, 2022.The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theCity of Port Huron, Michigan, it is not intended to and does not present the financial position, changes in netposition or cash flows of the City of Port Huron, Michigan. Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financialstatements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Passthroughentity identifying numbers are presented where available.The City of Port Huron, Michigan has not elected to use the 10-percent de minimus indirect cost rate to recoverindirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Included in the Schedule for the year ended June 30, 2022 is $51,031 of expenditures incurred, under the DisasterGrants Public Assistance grant (ALN 97.036), in a previous fiscal year. The project worksheet for theseexpenditures was approved in the current fiscal year and these expenditures have been reported in the current fiscalyear in accordance with the reporting requirements outlined in the 2022 Compliance Supplement.

Finding Details

Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - ALN 21.027, Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year - SLFRP2024-2001 Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The City should ensure there is a process in place to verify, prior to entering into contracts with vendors, that such vendors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition - We noted during testing that the City had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - From July 1, 2021 through June 30, 2022 any contractor the City entered into a contract with using federal award funds should be verified, that they are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. We selected fourteen contractors for testing, and five lacked any verification. However based on our testing we noted that all five contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300, thereby creating no questioned costs. Cause and Effect - The City is required to verify that any contractor the City plans to enter into a contract with, using federal award funds, is not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Recommendation - We recommend that an internal control be put in place to ensure the verification of contractors occurs. Views of Responsible Officials and Corrective Action Plan - Procedures have already been put into place to ensure that each new contractor is not on the Federal list of suspended and/or debarred contractors. Furthermore, all vendors previously paid have been searched for in the Federal list and none were suspended and/or debarred.
Finding 2022-002
Assistance Listing Number, Federal Agency, and Program Name - ALN 21.027, Coronavirus State and Local Fiscal Recovery Fund Federal Award Identification Number and Year - SLFRP2024-2001 Pass through Entity - Not applicable Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The City should ensure there is a process in place to verify, prior to entering into contracts with vendors, that such vendors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition - We noted during testing that the City had no procedure in place to verify contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300 prior to entering into contracts with award funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - From July 1, 2021 through June 30, 2022 any contractor the City entered into a contract with using federal award funds should be verified, that they are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. We selected fourteen contractors for testing, and five lacked any verification. However based on our testing we noted that all five contractors were not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300, thereby creating no questioned costs. Cause and Effect - The City is required to verify that any contractor the City plans to enter into a contract with, using federal award funds, is not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Recommendation - We recommend that an internal control be put in place to ensure the verification of contractors occurs. Views of Responsible Officials and Corrective Action Plan - Procedures have already been put into place to ensure that each new contractor is not on the Federal list of suspended and/or debarred contractors. Furthermore, all vendors previously paid have been searched for in the Federal list and none were suspended and/or debarred.