FAC Explorer

Audit 13892

FY End
2023-06-30
Total Expended
$1.55M
Findings
6
Programs
12
Organization: Elk Rapids Schools (MI)
Year: 2023 Accepted: 2024-01-26
Auditor: Dennis Gartland & Niergarth

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10231 2023-006 Material Weakness - B
10232 2023-006 Material Weakness - B
10233 2023-006 Material Weakness - B
586673 2023-006 Material Weakness - B
586674 2023-006 Material Weakness - B
586675 2023-006 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $161,202 Yes 1
84.010 Title I Grants to Local Educational Agencies $137,483 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $45,792 - 0
10.553 School Breakfast Program $40,498 - 0
84.367 Improving Teacher Quality State Grants $23,800 - 0
84.173 Special Education_preschool Grants $19,276 - 0
10.559 Summer Food Service Program for Children $6,032 - 0
93.778 Medical Assistance Program $4,640 - 0
10.185 Local Food for Schools $3,680 - 0
84.424 Student Support and Academic Enrichment Program $2,950 - 0
10.555 National School Lunch Program $2,757 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
CP9CUXKKDHH9 Laurie McCann Auditee
2312646538 Trina Ochs Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the School District, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2 Management has reported that expenditures in this Schedule of Expenditures of Federal Awards are equal to those amounts reported in the annual or final cost reports. Unallowed differences, if any, have been disclosed to the auditor. Note 3 The financial reports, including claims for advances and reimbursements and amounts claimed or used for matching are timely, complete, accurate and contain information that is supported by the books and records from which the basic financial statements have been prepared. Grant receipts reported on the Schedule of Expenditures of Federal Awards, as passed through the Michigan Department of Education, reconcile to the Grant Auditor's Report (R7120). Unreconciled differences have been disclosed to the auditor. Note 4 The School District did not use the 10% de-minimus cost rate under the Uniform Administrative Requirements. Note 5 A reconciliation of expenditures on the Schedule of Expenditures of Federal Awards with Federal sources reported on the financial statements are as follows: Federal expenditures per schedule of expenditures of federal awards $ 1,547,509 Child Care Stabilization Funds 111,426 Total federal sources per financial statements $ 1,658,935 Note 6 Pass-through entities, where applicable, have been identified in the schedule with an abbreviation, defined as follows: Pass-Through Agency Abbreviation Pass-Through Agency Name MDE Michigan Department of Education NES Northwest Education Services De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de-minimus cost rate under the Uniform Administrative Requirements.

Finding Details

Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.
Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.
Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.
Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.
Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.
Finding 2023-006
Finding Number 2023-006 Assistance Listing Number 84.425 - Education Stabilization Fund Allowable Costs/Cost Principles - Documentation of Employee Time and Effort Material Weakness in Internal Control over Compliance Material Noncompliance Criteria: Per Federal regulations CFR Title 2, Part 200 Section 200.430 (i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The School District did not maintain time and effort distribution records for two employees whose salaries, wages and benefits were charged to the federal award program. Cause: Accounting department turnover lead to incomplete record keeping and lack of knowledge on the federal requirement requiring accounting records to support salary, wage and benefit allocations. Effect: As a result of this condition, salaries, wages and benefits may be charged to the federal award program that are not supported by time and effort distributions. Questioned Costs: Known questioned costs are $77,244, and likely questioned costs are $130,610. Context: This finding relates to two employees whose salary, wages and benefits are charged 100% to this federal award program, however, the School District simply did not obtain an after-the-fact determination of their time and effort in accordance with the federal requirements. Recommendation: Salaries, wages and benefits allocations must be supported by time and effort documentation. This can be accomplished by obtaining semi-annual certifications, personal activity reports or weekly timecards from employees. We recommend management review employee allocations to ensure an after-the-fact determination of actual time spent is obtained from all employees charged to federal award programs.