Finding 572514 (2024-003)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-08-05
Audit: 363672
Organization: City of Mt Pleasant (MI)

AI Summary

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

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 will establish formal written policies and procedures as required by 2CFR 200.

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, 2024. 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 will update the written policies and procedures to ensure the inclusion of the requirements surrounding federal awards as required by 2CFR 200 and provide them to the staff by September 30, 2025. This update will include 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

  • 572515 2024-003
    Material Weakness
  • 1148956 2024-003
    Material Weakness
  • 1148957 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.37M
66.458 Clean Water State Revolving Fund $270,830
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $80,000