EIN: 386004672
UEI: HKZLEBRG1SJ3
Audited by: UHY LLP
Oversight agency: 10 [Department of Agriculture]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 22, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 22, 2023 (1072 days ago).
What is a management decision? →FAC accepted this audit on March 27, 2022 — management decision was due September 27, 2022.
During our testing of compliance with procurement requirements, of the eight vendors selected for testing, we found that seven that had the proper documentation on file for the verification. The contracted grant administrator from Revitalize stated that the eighth verification had been performed but due to staffing changes the documentation was misplaced. Cause: The City?s internal controls did not detect that the verification for suspension or debarment was not on file for one of the contractors. Effect: As a result, if the verification was not performed payments could lead to a contract with a vendor that is prohibited from participating in federal programs. The City could also be required to repay any federal monies it used to cover the costs associated with a vendor that was suspended or debarred. Recommendation: We recommend that the City strengthen existing controls to include maintaining evidence demonstrating that the verification of suspension and debarment was performed for vendors receiving $25,000 or more in federal funds. View of responsible officials and planned corrective action: Management agrees with the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Section III ? Federal Award Program Findings and Questioned Costs: 2021-001: Strengthen Controls for Verifying Suspension and Debarment Type: Significant Deficiency, Internal Control over Compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-Through Grantor, and Pass-Through Name and Grant Number: -Assistance listing #14.228, U.S. Department of Housing and Urban Development, Passed Through the Michigan Strategic Fund, Community Development Block Grant, MSC 217048-FRZ Criteria: Per the Procurement, Suspension, and Debarment compliance requirement, when procuring property and services, awarded entities must follow the procurements standards set out at 2 CFR Sections 200.318 through 200.326. Each procurement made using federal funds must comply with the guidance outlined within the Uniform Guidance. Per Uniform Guidance for Procurement, Suspension, and Debarment, nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. This requirement includes procurement contracts that are expected to exceed $25,000. Condition: During our testing of compliance with procurement requirements, of the eight vendors selected for testing, we found that seven that had the proper documentation on file for the verification. The contracted grant administrator from Revitalize stated that the eighth verification had been performed but due to staffing changes the documentation was misplaced. Cause: The City?s internal controls did not detect that the verification for suspension or debarment was not on file for one of the contractors. Effect: As a result, if the verification was not performed payments could lead to a contract with a vendor that is prohibited from participating in federal programs. The City could also be required to repay any federal monies it used to cover the costs associated with a vendor that was suspended or debarred. Recommendation: We recommend that the City strengthen existing controls to include maintaining evidence demonstrating that the verification of suspension and debarment was performed for vendors receiving $25,000 or more in federal funds. View of responsible officials and planned corrective action: Management agrees with the finding. See corrective action plan.
2021-001: Strengthen Controls for Verifying Suspension and Debarment The City agrees that the internal control finding identified by UHY occurred. Due to multiple staffing changes at all levels of the project, as well as the out of the ordinary working conditions due to the COVID-19 pandemic, a weakness in our internal controls related to the verification of suspension and debarment of project vendors did occur. Not only did the City experience a change in City Managers in the middle of the project, our contracted grant administrator, Revitalize, also changed key personnel during the same time period. Revitalize stated that their original employee assigned to our project did complete the verification process on all vendors but when files were handed over after the staffing changes, verification on one vendor could not be located. The City was not made aware of this until completion of the project. This has been a learning experience for the City. After this weakness was discovered, the City revisited our Federal Awards Administration Policies and Procedures. On October 4, 2021, Durand City Council adopted an updated version of those policies and specifically addressed this weakness. In the future, at the start of any federally funded project, the City Treasurer will be responsible for checking the Excluded Parties List System (EPLS) maintained by the General Services Administration (GSA) for the vendor's name. A potential match will be followed up on immediately. Each vendor searched on EPLS will be initialed on the vendor transaction report and the report will be signed and dated on the first page. The vendor transaction report will be filed in the Federal award file as evidence of the control. If a vendor is found to be suspended or debarred, the City will immediately cease to do business with the vendor. Contact Person: Cameron Horvath, City Manager
FAC accepted this audit on December 17, 2017 — management decision was due June 17, 2018.
FAC accepted this audit on January 15, 2017 — management decision was due July 15, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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