FAC Explorer

Audit 3016

FY End
2023-06-30
Total Expended
$6.61M
Findings
4
Programs
15
Organization: The School District of the City of Harper Woods (MI)
Year: 2023 Accepted: 2023-11-13
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1740 2023-002 Material Weakness - B
1741 2023-002 Material Weakness - B
578182 2023-002 Material Weakness - B
578183 2023-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.68M Yes 0
84.027 Special Education_grants to States $583,184 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $336,000 - 0
84.367 Improving Teacher Quality State Grants $86,114 - 0
84.048 Career and Technical Education -- Basic Grants to States $75,643 - 0
84.424 Student Support and Academic Enrichment Program $49,660 - 0
10.558 Child and Adult Care Food Program $37,560 - 0
10.553 School Breakfast Program $36,614 - 0
84.010 Title I Grants to Local Educational Agencies $23,060 Yes 0
10.555 National School Lunch Program $22,263 - 0
84.173 Special Education_preschool Grants $10,461 - 0
93.778 Medical Assistance Program $5,385 - 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0
10.559 Summer Food Service Program for Children $2,627 - 0
84.365 English Language Acquisition State Grants $1,500 - 0

Contacts

Name Title Type
EURJNGF199U7 Dr. Hannah Jaber Auditee
5862092400 Alan Panter Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA 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 School District of the City of Harper Woods has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of The School District of the City of Harper Woods 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 School District of the City of Harper Woods, it is not intended to and does not present the financial position or changes in financial position of The School District of the City of Harper Woods.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures reported on the SEFA 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 School District of the City of Harper Woods has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal revenues of $8,199,196 less the prior year unavailable revenue of $1,609,084 and rounding differences of $1, addition of the current year unavailable revenue of $23,060 agrees to the SEFA balance of $6,613,171.
Title: Funds Transferred to Subrecipients Accounting Policies: Expenditures reported on the SEFA 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 School District of the City of Harper Woods has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schools District did not transfer any federal funds to subrecipients during the fiscal year.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the SEFA 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 School District of the City of Harper Woods has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Management has reported the expenditures in the SEFA equal to those amounts reported in the annual or final cost reports that have been submitted for that particular grant year. The federal amounts reported on the CMS Grant Auditor Report (GAR) Subrecipient Schedule are in agreement with the SEFA. The amounts reported on the Recipient Entitlement Balance Report (PAL Report) agree with the SEFA for USDA donated food commodities.

Finding Details

Finding 2023-002
Finding 2023-002 – Material Weakness & Material Noncompliance – Allowable Costs/Cost Principles related to Title I, Part A – Grants to Local Education Agencies, Assistance Listing Number 84.010A, Award Number 231530 and the Education Stabilization Fund, Assistance Listing Number 84.425D, Award Number 213712 Criteria: Management is responsible for complying with the specific compliance requirements set forth by the Uniform Guidance, the U.S. Department of Education, and the District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. 2 CFR 200.403 requires that costs be charged appropriately according to budget and that costs be necessary and reasonable for the performance of the grant. Condition: As a result of our audit procedures, we identified that function and object codes allocated to the Title I, Part A – Grants to Local Education Agencies were materially over the budget approved by MDE or not within the approved budget. The Education Stabilization Fund had a similar budgetary issue, however, it was not material to the grant. These grants were not overspent in total, nor would the grant expenditures tested have been considered unallowable if they had been within budget. Cause and Effect: The District’s internal control over grant compliance, along with budgetary review, were not sufficient to detect and correct errors in a timely manner. The effect was that actual costs exceeded the approved grant budget by function. Questioned Costs: Title I - The District exceeded budget by $127,769, calculated by comparing functional amounts charged to the budget by function. In addition, the District initially recorded $78,440 as a grant expenditure within the incorrect function compared to the approved budget and was subsequently reclassified to the correct function. Education Stabilization Fund - The District exceeded budget beyond the 10% allowable by function without a budget amendment by $91,851. In addition, the District initially recorded $8,761 as a grant expenditure that was not approved within the budget and was subsequently reclassified to the General Fund. Recommendation: We recommend the District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2023-002
Finding 2023-002 – Material Weakness & Material Noncompliance – Allowable Costs/Cost Principles related to Title I, Part A – Grants to Local Education Agencies, Assistance Listing Number 84.010A, Award Number 231530 and the Education Stabilization Fund, Assistance Listing Number 84.425D, Award Number 213712 Criteria: Management is responsible for complying with the specific compliance requirements set forth by the Uniform Guidance, the U.S. Department of Education, and the District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. 2 CFR 200.403 requires that costs be charged appropriately according to budget and that costs be necessary and reasonable for the performance of the grant. Condition: As a result of our audit procedures, we identified that function and object codes allocated to the Title I, Part A – Grants to Local Education Agencies were materially over the budget approved by MDE or not within the approved budget. The Education Stabilization Fund had a similar budgetary issue, however, it was not material to the grant. These grants were not overspent in total, nor would the grant expenditures tested have been considered unallowable if they had been within budget. Cause and Effect: The District’s internal control over grant compliance, along with budgetary review, were not sufficient to detect and correct errors in a timely manner. The effect was that actual costs exceeded the approved grant budget by function. Questioned Costs: Title I - The District exceeded budget by $127,769, calculated by comparing functional amounts charged to the budget by function. In addition, the District initially recorded $78,440 as a grant expenditure within the incorrect function compared to the approved budget and was subsequently reclassified to the correct function. Education Stabilization Fund - The District exceeded budget beyond the 10% allowable by function without a budget amendment by $91,851. In addition, the District initially recorded $8,761 as a grant expenditure that was not approved within the budget and was subsequently reclassified to the General Fund. Recommendation: We recommend the District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2023-002
Finding 2023-002 – Material Weakness & Material Noncompliance – Allowable Costs/Cost Principles related to Title I, Part A – Grants to Local Education Agencies, Assistance Listing Number 84.010A, Award Number 231530 and the Education Stabilization Fund, Assistance Listing Number 84.425D, Award Number 213712 Criteria: Management is responsible for complying with the specific compliance requirements set forth by the Uniform Guidance, the U.S. Department of Education, and the District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. 2 CFR 200.403 requires that costs be charged appropriately according to budget and that costs be necessary and reasonable for the performance of the grant. Condition: As a result of our audit procedures, we identified that function and object codes allocated to the Title I, Part A – Grants to Local Education Agencies were materially over the budget approved by MDE or not within the approved budget. The Education Stabilization Fund had a similar budgetary issue, however, it was not material to the grant. These grants were not overspent in total, nor would the grant expenditures tested have been considered unallowable if they had been within budget. Cause and Effect: The District’s internal control over grant compliance, along with budgetary review, were not sufficient to detect and correct errors in a timely manner. The effect was that actual costs exceeded the approved grant budget by function. Questioned Costs: Title I - The District exceeded budget by $127,769, calculated by comparing functional amounts charged to the budget by function. In addition, the District initially recorded $78,440 as a grant expenditure within the incorrect function compared to the approved budget and was subsequently reclassified to the correct function. Education Stabilization Fund - The District exceeded budget beyond the 10% allowable by function without a budget amendment by $91,851. In addition, the District initially recorded $8,761 as a grant expenditure that was not approved within the budget and was subsequently reclassified to the General Fund. Recommendation: We recommend the District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2023-002
Finding 2023-002 – Material Weakness & Material Noncompliance – Allowable Costs/Cost Principles related to Title I, Part A – Grants to Local Education Agencies, Assistance Listing Number 84.010A, Award Number 231530 and the Education Stabilization Fund, Assistance Listing Number 84.425D, Award Number 213712 Criteria: Management is responsible for complying with the specific compliance requirements set forth by the Uniform Guidance, the U.S. Department of Education, and the District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. 2 CFR 200.403 requires that costs be charged appropriately according to budget and that costs be necessary and reasonable for the performance of the grant. Condition: As a result of our audit procedures, we identified that function and object codes allocated to the Title I, Part A – Grants to Local Education Agencies were materially over the budget approved by MDE or not within the approved budget. The Education Stabilization Fund had a similar budgetary issue, however, it was not material to the grant. These grants were not overspent in total, nor would the grant expenditures tested have been considered unallowable if they had been within budget. Cause and Effect: The District’s internal control over grant compliance, along with budgetary review, were not sufficient to detect and correct errors in a timely manner. The effect was that actual costs exceeded the approved grant budget by function. Questioned Costs: Title I - The District exceeded budget by $127,769, calculated by comparing functional amounts charged to the budget by function. In addition, the District initially recorded $78,440 as a grant expenditure within the incorrect function compared to the approved budget and was subsequently reclassified to the correct function. Education Stabilization Fund - The District exceeded budget beyond the 10% allowable by function without a budget amendment by $91,851. In addition, the District initially recorded $8,761 as a grant expenditure that was not approved within the budget and was subsequently reclassified to the General Fund. Recommendation: We recommend the District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.