Finding 526455 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-03-10
Audit: 345380
Organization: City of Wyandotte, Michigan (MI)

AI Summary

  • Core Issue: The City reported its total award amount instead of actual expenditures in the Project and Expenditure Report.
  • Impacted Requirements: This finding indicates a material weakness and noncompliance with reporting requirements under 31 CFR Part 35.
  • Recommended Follow-Up: The City should establish a review process for report accuracy before submission to prevent future errors.

Finding Text

Assistance Listing, Federal Agency, and Program Name 21.027, U.S. Department of Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria In accordance with 31 CFR Part 35, section IV "Program Administrative Provisions," subsection "H. Reporting," recipients are required to submit periodic Project and Expenditure Reports. Condition The City submitted the required Project and Expenditure Report, but the amount reported in March 2023 as cumulative expenditures was the City's total award amount rather than the amount spent to date. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The total amount reported as cumulative expenditures was $2,612,400.50, which represented the City's total award amount. The actual cumulative expenditures incurred through March 2023 were $92,551. Cause and Effect The City misinterpreted the information required on the form. As a result, they included the total award amount rather than the actual cumulative expenditures. Recommendation We recommend the City implement a process to ensure reports are reviewed for accuracy prior to submission. Views of Responsible Officials and Planned Corrective Actions The City will correct the reports that have been submitted and review future reports to ensure the appropriate expenditures are disclosed.

Corrective Action Plan

Condition: The City submitted the required Project and Expenditure Report, but the amount reported in March 2023 as cumulative expenditures was the City's total award amount rather than the amount spent to date. Planned Corrective Action: The City will correct the reports that have been submitted and review future reports to ensure the appropriate expenditures are disclosed. Contact person responsible for corrective action: Robert McMahon, City Administrator Anticipated Completion Date: 09/30/2025

Categories

Material Weakness Reporting Special Tests & Provisions

Other Findings in this Audit

  • 526452 2023-002
    Material Weakness Repeat
  • 526453 2023-002
    Material Weakness Repeat
  • 526454 2023-003
    Material Weakness Repeat
  • 1102894 2023-002
    Material Weakness Repeat
  • 1102895 2023-002
    Material Weakness Repeat
  • 1102896 2023-003
    Material Weakness Repeat
  • 1102897 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $689,255
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $570,000
14.218 Community Development Block Grants/entitlement Grants $75,192
10.569 Emergency Food Assistance Program (food Commodities) $59,409
16.922 Equitable Sharing Program $58,000
97.067 Homeland Security Grant Program $22,093
97.044 Assistance to Firefighters Grant $10,281
11.419 Coastal Zone Management Administration Awards $7,500
90.404 Hava Election Security Grants $5,285