Finding 1237740 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-28
Audit: 412645
Organization: City of Mt Pleasant (MI)

AI Summary

  • Core Issue: The City lacks written policies for managing federal awards as required by 2CFR 200.
  • Impacted Requirements: This includes procurement standards, bidding procedures, and vendor suspension/debarment reviews.
  • Recommended Follow-Up: The City should maintain and regularly update its formal written federal grant policies and procedures.

Finding Text

Condition and Criteria: The City does not have written policies and procedures regarding federal awards required by 2CFR 200. This includes procurement standards, including bidding procedures and review for vendor suspension and debarment. Cause: The City has had minimal federal grant funding in the past and has not implemented written federal grant policies and procedures as required by 2FCR 200. Effect: The City expended federal funds without implementing written federal grant policies and procedures, and did not follow the federal requirements for bidding and review for vendor suspension and debarment. Recommendation: The City should establish formal written federal grant policies and procedures. Management Response: Management established formal written Federal grant policies and procedures as required by 2CFR 200 at year end.

Corrective Action Plan

The City of Mt. Pleasant agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending December 31, 2025. The City does not have written policies and procedures regarding federal awards required by 2CFR200. This includes procurement standards, including bidding procedures and review of vendor suspention and debarment. Implementation and monitoring - The City has verbally discussed and trained the current staff with the required procedures to ensure compliance with the 2CFR 200 requirements, including the verification of the vendor through SAM.gov as soon as this finding was known to the staff. The City has updated the written policies and procedures to ensure the inclusion of the requirements surrounding federal awards as required by 2CFR 200 and provided them to the staff in December 2025. This update included procurement standards, bidding procedures, and the review of the vendors through SAM.gov. It will be the responsibility of the Division Heads, City Manager and Fiannce Director to ensure the policies and procedures are being adhered to. If anyone has questions about the plan, please contact Lauren Pavlowski at 989-779-5376.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1237739 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 CLEAN WATER STATE REVOLVING FUND $1.04M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $533,049
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $217,076
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $9,662