FAC Explorer

Audit 1694

FY End
2023-06-30
Total Expended
$1.08M
Findings
2
Programs
11
Organization: Breckenridge Community Schools (MI)
Year: 2023 Accepted: 2023-10-30
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
915 2023-001 Significant Deficiency - A
577357 2023-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $349,068 Yes 1
84.010 Title I Grants to Local Educational Agencies $192,126 - 0
32.009 Emergency Connectivity Fund Program $80,011 - 0
10.553 School Breakfast Program $52,452 - 0
84.367 Improving Teacher Quality State Grants $31,138 - 0
84.358 Rural Education $16,638 - 0
84.424 Student Support and Academic Enrichment Program $13,206 - 0
93.778 Medical Assistance Program $2,678 - 0
10.185 Local Food for Schools Cooperative Agreement $2,626 - 0
10.555 National School Lunch Program $1,094 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
XJW3AFX6M527 Stacey Haag Auditee
9898755101 Christina Schaub Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The District has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Breckenridge Community School District (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 (CFR) 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 its financial position or changes in net position of the District. Management has utilized the Nexsys cash management system and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: RECONCILIATION WITH AUDITED FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. The District has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Federal expenditures are reported as revenues in the following funds in the financial statements of the District: Fund Amount General Fund 1,020,917 Food Service Fund 268,737 Total federal revenues per financial statements 1,289,654Less: Federal revenues not subject to single audit act (211,167) Federal revenues subject to single audit act 1,078,487

Finding Details

Finding 2023-001
2023-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES Program: ALN 84.425 Education Stabilization Fund, COVID-19 - ESSER III - Formula Type: Significant deficiency in Internal Control / Immaterial non-compliance Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants, it was noted that payments for 6 laptops were charged to the grant but were not authorized by the grant. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant. View of Responsible Official: Management is in agreement with this recommendation
Finding 2023-001
2023-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES Program: ALN 84.425 Education Stabilization Fund, COVID-19 - ESSER III - Formula Type: Significant deficiency in Internal Control / Immaterial non-compliance Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants, it was noted that payments for 6 laptops were charged to the grant but were not authorized by the grant. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant. View of Responsible Official: Management is in agreement with this recommendation