Audit 18655

FY End
2022-06-30
Total Expended
$838,571
Findings
8
Programs
10
Organization: Arts Academy in the Woods (MI)
Year: 2022 Accepted: 2022-11-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
21241 2022-001 Significant Deficiency - N
21242 2022-001 Significant Deficiency - N
21243 2022-001 Significant Deficiency - N
21244 2022-001 Significant Deficiency - N
597683 2022-001 Significant Deficiency - N
597684 2022-001 Significant Deficiency - N
597685 2022-001 Significant Deficiency - N
597686 2022-001 Significant Deficiency - N

Programs

Contacts

Name Title Type
NAQ2RMXKKQK1 Cindy Schwark Auditee
5862283362 Laura Claeys Auditor
No contacts on file

Notes to SEFA

Title: Grant Auditor Report Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Arts Academy in the Woods (the Academy) under programs of the federal government for the year ended June 30, 2022. The information in the 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. Expenditures reported in the Schedule are reported on the same basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement and frequently asked questions, as outlined in the 2020 Compliance Supplement Addendum. 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. The pass through entity identifying numbers are presented where available. The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report (GAR) in preparing the schedule of expenditures of federal awards. Differences, if any, between the GAR and the schedule of expenditures of federal awards relate to the timing of payments and the fiscal year to which the payments relate
Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Arts Academy in the Woods (the Academy) under programs of the federal government for the year ended June 30, 2022. The information in the 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. Expenditures reported in the Schedule are reported on the same basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement and frequently asked questions, as outlined in the 2020 Compliance Supplement Addendum. 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. The pass through entity identifying numbers are presented where available. The Academy has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance.

Finding Details

ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.
ALN, Federal Agency, and Program Name - Education Stabilization Fund - U.S. Department of the Treasury - ALN 84.425U - ESSER III Fund- Formula Federal Award Identification Number and Year - 213713-2122 Pass through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - Entities who engage contractors with federal funds are required to include clauses in such contracts to require prevailing wages to be paid and verify that the contractor supplied the appropriate certified payroll information for each payroll period. Condition - The Academy engaged a contractor with the appropriate prevailing wage wording in the contract language. However, the contractor did not provide the certified payroll information as required, and the Academy was unable to obtain it. Questioned Costs - None Identification of How Questioned Costs Were Computed - The contractor provided the hours and the wage rate paid but not the certified payrolls, and the total amounts were approximately $9,000. Context - Of the total capital expenditures during the period of approximately $371,000, only $9,000 related to payroll related items, subject to prevailing wage provisions. Cause and Effect - As a new grant and provision, the Academy did not have a control in place that identified the certified payrolls needed to be obtained. As a result, although the contract language indicated prevailing wages needed to be paid, the documentation required to support the amounts were not obtained timely. Recommendation - We recommend the Academy communicate to the contractors that any further activity associated with payroll must accompany the certified payroll information as required under the grant language, regardless of whether the contract indicates such information is provided. Since the contract language indicates prevailing wages must be paid, requiring the contractor to prove such payments appears to be within the contract provisions. Views of Responsible Officials and Corrective Action Plan - The Academy agrees that they did not receive the certified payroll information as required by the grant and will obtain such information to the extent any further dollars are expended for wages covered by the certified payroll provisions.