Title
Resolution to Approve Deficit Elimination Plan as of June 30, 2022 for the Major Grants Fund (00MG)
Memorandum
Pursuant to the law of the State of Michigan, the City must prepare and authorize a deficit elimination plan for the Major Grants Fund, which as of June 30, 2022 had a fund deficit of $673,851.00.
On August 15, 2016 the City of Ann Arbor passed a resolution (R-16-331) to accept a phased FEMA Hazard Mitigation Assistance Grant (Project # HMGP P4196) for the Allen Creek Berm opening project. The grant covered 75% of the project costs and required a 25% match, which was to be provided by the City's Stormwater Sewer Fund. As of June 30, 2022, the City has $1,104,677.00 in pending reimbursement requests, resulting in the reported deficit.
Due to the COVID Pandemic, FEMA Grant reimbursements were significantly delayed. The probability and amount of future collections from FEMA was unknown. Resources were not available to substantiate an accrual transaction. Therefore, revenue could not be accrued to cover the deficit for fiscal year 2022. As of November 29, 2022, the reimbursements have been received in full and have been appropriately recorded correcting the deficit.
The City of Ann Arbor is requesting the City Council approve the City's Deficit Elimination Plan for fiscal year ended June 30,2022.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor's Major Grant Fund had a $673,851.00 deficit fund balance on June 30, 2022; and
Whereas,1971 PA 140 requires that a Deficit Elimination Plan be formulated by the local unit of government and filed with the Michigan Department of Treasury;
RESOLVED, The City of Ann Arbor adopts the following table below, which is also included as Attachment 1, as the Major Grants Fund deficit elimination plan; and
RESOLVED, That a certified copy of t...
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