FAC Explorer

Audit 14327

FY End
2023-06-30
Total Expended
$6.28M
Findings
12
Programs
12
Organization: Marshall Public Schools (MI)
Year: 2023 Accepted: 2024-01-30
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10656 2023-001 Significant Deficiency - B
10657 2023-001 Significant Deficiency - B
10658 2023-001 Significant Deficiency - B
10659 2023-002 Material Weakness - N
10660 2023-002 Material Weakness - N
10661 2023-002 Material Weakness - N
587098 2023-001 Significant Deficiency - B
587099 2023-001 Significant Deficiency - B
587100 2023-001 Significant Deficiency - B
587101 2023-002 Material Weakness - N
587102 2023-002 Material Weakness - N
587103 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.29M - 0
84.425 Education Stabilization Fund $676,164 Yes 2
10.553 School Breakfast Program $301,381 Yes 0
32.009 Emergency Connectivity Fund Program $184,826 - 0
84.424 Student Support and Academic Enrichment Program $82,590 - 0
84.367 Improving Teacher Quality State Grants $75,574 - 0
10.559 Summer Food Service Program for Children $43,950 Yes 0
10.555 National School Lunch Program $28,622 Yes 0
10.582 Fresh Fruit and Vegetable Program $13,995 Yes 0
10.185 Local Food for Schools $11,786 - 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0
10.558 Child and Adult Care Food Program $666 - 0

Contacts

Name Title Type
L2HLXP15AV28 Rebecca L. Jones Auditee
2697817757 Nathan C. Baldermann, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH AGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marshall Public Schools (the “District”) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the District's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been included and all grant requirements have been met. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the financial reports. The amounts reported on the Grant Auditor Report reconcile with this Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the District has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The District receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: “See the Notes to the SEFA for chart/table."
Title: RECONCILIATION TO FEDERAL REVENUES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marshall Public Schools (the “District”) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the District's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been included and all grant requirements have been met. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the financial reports. The amounts reported on the Grant Auditor Report reconcile with this Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the District has not elected to use the 10 percent de minimis cost rate as permitted by §200.414 of the Uniform Guidance. A reconciliation of revenues from federal sources reported in the governmental funds financial statements and expenditures reported in the Schedule of Expenditures of Federal Awards is as follows: “See the Notes to the SEFA for chart/table."

Finding Details

Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles – Timesheets Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Controls over Compliance Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires the District to support payroll charged to federal cost objectives with adequate documentation in accordance with the District's payroll policies, which require timesheets include signature by the individual and evidence of approval by the individual's supervisor. Condition. Two out of forty disbursements selected for testing did not include the required documentation by the employee and approvals by their supervisor. Cause. Management did not consistently follow its documented payroll policies related to timesheet documentation during the year. Effect. As a result of this condition, the District was exposed to increased risk that payroll charges of federal awards could be made for unallowable costs. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District review its written policies and procedures over federal awards to ensure that all timesheets have the appropriate documentation and evidence of review and approval prior to payment. View of Responsible Officials. The business office will be reviewing that all timesheets are signed by employees and approved by their supervisor prior to payment. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024
Finding 2023-002
2023-002 – Special Tests and Provisions – Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education -  COVID-19 - Education Stabilization Fund (ALN 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. Condition. Three of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $706,521. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Business Manager Estimated Completion Date. June 30, 2024