Finding 1215206 (2024-006)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-05-20

Audit: 401867

Organization: City Of Wakefield (MI)

Auditor: GABRIDGE & CO PLC

AI Summary

Core Issue: The City failed to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ending June 30, 2024.
Impacted Requirements: This finding indicates a material weakness in internal controls over compliance with Uniform Guidance (2 CFR 200.302 and 2 CFR 200.510(b)).
Recommended Follow-Up: The City needs to establish procedures to effectively identify, track, and report Federal awards to ensure compliance and accurate SEFA preparation.

Finding Text

2024-006 - 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, 2024. 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.

Corrective Action Plan

The City acknowledges the finding. The City will strengthen procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year so that a complete and accurate SEFA can be prepared in a timely manner for future audit periods. Procedures will include maintaining award documentation sufficient to identify the federal agency/program, Assistance Listing number, award or loan identifiers, expenditures or loan proceeds, outstanding federal loan balances, sub-recipient amounts if any, and required SEFA notes.

Other Findings in this Audit

1215200 2024-006

Material Weakness Repeat
1215201 2024-007

Material Weakness Repeat
1215202 2024-008

Material Weakness Repeat
1215203 2024-006

Material Weakness Repeat
1215204 2024-007

Material Weakness Repeat
1215205 2024-008

Material Weakness Repeat
1215207 2024-007

Material Weakness Repeat
1215208 2024-008

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.760	WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES	$40,000
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$21,874