FAC Explorer

Audit 28808

FY End
2022-06-30
Total Expended
$10.02M
Findings
2
Programs
13
Organization: School District of the City of Wyandotte (MI)
Year: 2022 Accepted: 2022-11-07
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28702 2022-002 Material Weakness - P
605144 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $2.27M - 0
10.555 National School Lunch Program $1.72M - 0
84.010 Title I Grants to Local Educational Agencies $550,936 - 0
10.553 School Breakfast Program $305,499 - 0
84.425 Education Stabilization Fund $161,614 Yes 0
84.367 Improving Teacher Quality State Grants $133,482 - 0
84.173 Special Education_preschool Grants $47,414 - 0
93.778 Medical Assistance Program $46,163 - 0
10.559 Summer Food Service Program for Children $29,671 - 0
84.424 Student Support and Academic Enrichment Program $19,060 - 0
21.019 Coronavirus Relief Fund $10,265 - 0
10.558 Child and Adult Care Food Program $3,946 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
DDHRXGH46WU5 Ken Laub Auditee
7343341300 Michael A. Georges, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Reconciliation to the 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 the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See Note 3 in Notes to the Schedule of Expenditures of Federal Awards for the reconciliation.
Title: Note 4 - Subrecipients 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 the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No amounts were provided to subrecipients.
Title: Note 5 - Michigan Department of Education Disclosures 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 the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See Note 5 in Notes to the Schedule of Expenditures of Federal Awards for the reconciliation.

Finding Details

Finding 2022-002
Finding 2022-002: Wage Rate Requirements Program Name: Education Stabilization Fund ? Assistance Listing 84.425D Awarding Agency: U.S. Department of Education, passed through Michigan Department of Education Finding Type: Material Weakness on Internal Controls over Compliance Questioned Cost Amount: Unknown ? from $0 to $60,000 Context / Criteria: All construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act as supplemented by Department of Labor regulations. Condition: The School District did not have controls in place to ensure construction contracts in excess of $2,000 included provisions for compliance with the Davis-Bacon Act. Cause / Effect: The School District entered into a contract with a construction manager for a project not funded by federal funds. Subsequent to the agreement being placed into effect, a change order was added to include a HVAC project that would be funded by federal funds. The original contract and the change order did not include a provision for compliance with the Davis-Bacon Act. As a result, the School District entered into a construction contract that was not in compliance with 2 CFR Part 176 Subpart C. Recommendation: We recommend management implement procedures to ensure construction contracts entered into that utilize federal funding are reviewed for compliance with federal requirements. Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying Corrective Action Plan.
Finding 2022-002
Finding 2022-002: Wage Rate Requirements Program Name: Education Stabilization Fund ? Assistance Listing 84.425D Awarding Agency: U.S. Department of Education, passed through Michigan Department of Education Finding Type: Material Weakness on Internal Controls over Compliance Questioned Cost Amount: Unknown ? from $0 to $60,000 Context / Criteria: All construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act as supplemented by Department of Labor regulations. Condition: The School District did not have controls in place to ensure construction contracts in excess of $2,000 included provisions for compliance with the Davis-Bacon Act. Cause / Effect: The School District entered into a contract with a construction manager for a project not funded by federal funds. Subsequent to the agreement being placed into effect, a change order was added to include a HVAC project that would be funded by federal funds. The original contract and the change order did not include a provision for compliance with the Davis-Bacon Act. As a result, the School District entered into a construction contract that was not in compliance with 2 CFR Part 176 Subpart C. Recommendation: We recommend management implement procedures to ensure construction contracts entered into that utilize federal funding are reviewed for compliance with federal requirements. Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying Corrective Action Plan.