Finding 517104 (2024-001)

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Requirement
I
Questioned Costs
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Year
2024
Accepted
2024-12-30
Audit: 334982
Organization: City of Belding (MI)

AI Summary

  • Core Issue: The City lacks written policies and procedures for managing Federal awards as required by 2CFR200.
  • Impacted Requirements: Federal funds were spent without the necessary policies in place, violating compliance standards.
  • Recommended Follow-Up: The City should create and implement formal written Federal grant policies and procedures.

Finding Text

Condition and Criteria: The City does not have written policies and procedures provide regarding Federal awards required by 2CFR200. Cause: The City had minimal Federal grant funding in the past and has not implemented written Federal grant policies and procedures as required by 2CFR200. Effect: The City expended Federal funds without implementing Federal grant policies and procedures. Recommendation: The City should establish formal wirtten Federal grant policies and procedures. Management Response: Management will establish formal written federal grant policies and procedures as required by 2CFR200.

Corrective Action Plan

The City of Belding agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending June 30, 2024. The City does not have formal written policies and procedures regarding federal awards which meet all the requirements by 2CFR200. The City followed proper procurement standards and other control procedures for ensuring federal funds were spent in accordance with grant documents, however, the City’s policies and procedures do not include all of the items require to be part of the policy per 2CFR 200. Subsequent to our fiscal year ended June 30, 2024, written Federal policies and procedures were formally approved and adopted by City Council at their December 17, 2024 meeting. The person responsible for the corrective action is Becky Schlienz, Finance Director.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $7.13M
10.766 Community Facilities Loans and Grants $1.30M
21.027 Coronavirus State and Local Fiscal Recovery Funds $149,669
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $118,500
20.509 Formula Grants for Rural Areas and Tribal Transit Program $2,793