Finding 517071 (2024-005)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-12-28
Audit: 334957
Organization: City of Marine City (MI)

AI Summary

  • Core Issue: The City lacked written procedures for federal awards until October 2024, which is a requirement for receiving federal funding.
  • Impacted Requirements: Without these procedures, the City’s internal controls were insufficient to meet federal compliance standards.
  • Recommended Follow-Up: The City should ensure the newly adopted Federal Grants policy is fully implemented and regularly reviewed to maintain compliance.

Finding Text

Criteria: As a precondition to receive federal awards, recipients must have a system of internal controls over federal awards. Condition: The City did not have written procedures for federal awards until October 2024. Cause: The City was not aware they were required to have written policies and procedures for federal awards and did not receive final grant and award documents until late in the fiscal year. Effect: The City's controls and procedures were not adequate to ensure all federal requirements were met. Recommendation: The City should adopt written policies and procedures for federal awards that ensure all federal requirements are met. Response: The City has created and City Commission approved a city-wide Federal Grants policy and procedure for the receiving of Federal grants or awards. This new policy was adopted in November 2024.

Corrective Action Plan

Response: The City has created and City Commission approved a city-wide Federal Grants policy and procedure for the receiving of Federal grants or awards. This new policy was adopted in November 2024. Timeframe: Complete. Contact Person Responsible for Corrective Action: City Manager Michael Reaves.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517072 2024-005
    Material Weakness
  • 517073 2024-005
    Material Weakness
  • 517074 2024-005
    Material Weakness
  • 517075 2024-005
    Material Weakness
  • 517076 2024-006
    Material Weakness
  • 517077 2024-006
    Material Weakness
  • 517078 2024-006
    Material Weakness
  • 517079 2024-006
    Material Weakness
  • 517080 2024-006
    Material Weakness
  • 1093513 2024-005
    Material Weakness
  • 1093514 2024-005
    Material Weakness
  • 1093515 2024-005
    Material Weakness
  • 1093516 2024-005
    Material Weakness
  • 1093517 2024-005
    Material Weakness
  • 1093518 2024-006
    Material Weakness
  • 1093519 2024-006
    Material Weakness
  • 1093520 2024-006
    Material Weakness
  • 1093521 2024-006
    Material Weakness
  • 1093522 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.00M
97.067 Homeland Security Grant Program $5,945