Auditors told the City of Saginaw that the water and sewer enterprise funds were affected by a federal grant of approximately $10,000,000 this fiscal year, which boosted cash inflows and corresponded with increased capital construction spending related to the so-called "Eagle" project.

Jamie Rivett, the audit partner, summarized enterprise fund activity and said cash inflows in the proprietary funds decreased overall by about $1,500,000 year over year but noted an increase in user charges of roughly $1,900,000. She said the water fund’s inflow increase was more significant because of the federal Eagle grant: "you did get a federal grant about 10,000,000 for the Eagle grant this year for your water fund," Rivett said.

Rivett added that the capital outflows also rose because of construction activity tied to the grant, and that the change in pension grant recognition also played into the year-to-year comparisons. She said auditors tested three major federal programs under single-audit rules and found no findings on the Community Development Block Grant, an EDC initiative special project and ARPA funds.

The transcript uses the name "Eagle" for the federal grant; auditors did not provide a grant program number or a sponsoring federal agency in the remarks recorded in this transcript. The city’s water utilities and finance staff will carry the capital work forward in the months after the audit presentation.