FAC Explorer

Audit 305967

FY End
2023-06-30
Total Expended
$24.52M
Findings
24
Programs
16
Organization: Hamtramck Public Schools (MI)
Year: 2023 Accepted: 2024-05-10
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396391 2023-004 Material Weakness - B
396392 2023-005 Material Weakness - P
396393 2023-004 Material Weakness - B
396394 2023-005 Material Weakness - P
396395 2023-003 Material Weakness - B
396396 2023-003 Material Weakness - B
396397 2023-003 Material Weakness - B
396398 2023-003 Material Weakness - B
396399 2023-006 Material Weakness - C
396400 2023-006 Material Weakness - C
396401 2023-006 Material Weakness - C
396402 2023-006 Material Weakness - C
972833 2023-004 Material Weakness - B
972834 2023-005 Material Weakness - P
972835 2023-004 Material Weakness - B
972836 2023-005 Material Weakness - P
972837 2023-003 Material Weakness - B
972838 2023-003 Material Weakness - B
972839 2023-003 Material Weakness - B
972840 2023-003 Material Weakness - B
972841 2023-006 Material Weakness - C
972842 2023-006 Material Weakness - C
972843 2023-006 Material Weakness - C
972844 2023-006 Material Weakness - C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.99M Yes 2
84.010 Title I Grants to Local Educational Agencies $931,049 Yes 2
10.559 Summer Food Service Program for Children $310,579 - 0
84.002 Adult Education - Basic Grants to States $246,994 - 0
10.555 National School Lunch Program $172,934 - 0
10.582 Fresh Fruit and Vegetable Program $98,850 - 0
84.365 English Language Acquisition State Grants $82,061 - 0
10.553 School Breakfast Program $69,938 - 0
84.424 Student Support and Academic Enrichment Program $63,871 - 0
84.367 Improving Teacher Quality State Grants $55,428 - 0
84.048 Career and Technical Education -- Basic Grants to States $44,682 - 0
93.778 Medical Assistance Program $12,248 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $10,000 - 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0
84.027 Special Education_grants to States $2,707 - 0
10.558 Child and Adult Care Food Program $1,331 - 0

Contacts

Name Title Type
KWSBJWV1NJ47 Jim Larson-Shidler Auditee
3138729270 Brian Dixon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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. De Minimis Rate Used: N Rate Explanation: The School District 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 (the Schedule) includes the federal award activity of Hamtramck Public Schools (the School 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 School District, it is not intended to and does not present the financial position or changes in fund balance or net position of the School District.
Title: Reconciliation to the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal revenues per the financial statements reconcile the schedule of expenditures of federal awards as follows: Expenditures per SEFA: $24,523,675 Amounts reported on the current year SEFA that did not meet the District's revenue recognition requirements and were therefore deferred in the fund statements: Fresh Fruit and Vegetable Program: ($14,539), Federal Adult Ed English Literacy Civics: ($246,994), Career and Technical Education - Basic Grants to States: ($12,903), Title I: ($503,509), Title II: ($20,093), Title III: ($6,157), Title IV: (35,799), ESSER II: ($1,358,486), Amounts reported on the prior year SEFA that did not meet the District's revenue recognition requirements and were therefore deferred in the fund statements in the prior year and recorded in the fund statements in the current year: Title I: $279,669, Title II: $33,714, Title III: $22,513, Title IV: $23,362, GEER: $26,000, Total revenues reported on the District's fund statements: $22,710,453.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District did not transfer any federal funds to subrecipients during the year.
Title: Adjustments Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. An adjustment to the schedule of expenditures of federal awards of $16,928 was made between grants 220900 Summer Food Service program for Children and 210904 COVID-19 Summer Food Service Program (AL #10.559) for expenditures that had been included under the wrong grant number on the 2022 SEFA.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the Schedule are reported on the 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. 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal amounts reported on the grant auditor report are in agreement with the schedule of expenditures of federal awards, except for the grants that reconcile due to timing differences: See Notes to the SEFA for the chart/table. The amounts reported on the recipient entitlement balance report agree with the schedule of expenditures of federal awards for U.S.D.A. donated food commodities.

Finding Details

Finding 2023-004
2023-004 – Material Weakness and Material Noncompliance – Title I Budgets - Allowability Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the Title I Part A grant, the district budgeted completed a budget within MEGS+, however, the amount that was approved in the districts final board approved budget amendment did not match the amounts by function in MEGS+. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-005
2023-005 – Material Weakness and Material Noncompliance – Compliance Areas Documentation Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The school district should maintain proper documentation to support that it is in compliance with applicable compliance areas related to the Title I Grant Condition: For the following compliance sections, the district was not able to find documentation to support compliance with the applicable standards for the year ended June 30, 2023: - Eligibility – Schoolwide plans and Comparability - Earmarking – Carryover Waiver - Special Tests – Assessment System Security As a result, the organization was not able to prove that they were in compliance with the applicable requirements of the Title I Part A grant. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office and curriculum department at year end, resulting in a lack of skills, knowledge, and experience related to proper documentation of grant compliance. Recommendation: We recommend that the organization reviews all compliance requirements of the Title I grant and reviews the documentation that they currently have on hand to be sure that going forward, all documentation is properly maintained. Additionally, we recommend that the district reviews compliance standards of the grants with all applicable staff to ensure that they understand the importance of maintaining proper documentation. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-004
2023-004 – Material Weakness and Material Noncompliance – Title I Budgets - Allowability Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the Title I Part A grant, the district budgeted completed a budget within MEGS+, however, the amount that was approved in the districts final board approved budget amendment did not match the amounts by function in MEGS+. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-005
2023-005 – Material Weakness and Material Noncompliance – Compliance Areas Documentation Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The school district should maintain proper documentation to support that it is in compliance with applicable compliance areas related to the Title I Grant Condition: For the following compliance sections, the district was not able to find documentation to support compliance with the applicable standards for the year ended June 30, 2023: - Eligibility – Schoolwide plans and Comparability - Earmarking – Carryover Waiver - Special Tests – Assessment System Security As a result, the organization was not able to prove that they were in compliance with the applicable requirements of the Title I Part A grant. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office and curriculum department at year end, resulting in a lack of skills, knowledge, and experience related to proper documentation of grant compliance. Recommendation: We recommend that the organization reviews all compliance requirements of the Title I grant and reviews the documentation that they currently have on hand to be sure that going forward, all documentation is properly maintained. Additionally, we recommend that the district reviews compliance standards of the grants with all applicable staff to ensure that they understand the importance of maintaining proper documentation. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-004
2023-004 – Material Weakness and Material Noncompliance – Title I Budgets - Allowability Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the Title I Part A grant, the district budgeted completed a budget within MEGS+, however, the amount that was approved in the districts final board approved budget amendment did not match the amounts by function in MEGS+. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-005
2023-005 – Material Weakness and Material Noncompliance – Compliance Areas Documentation Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The school district should maintain proper documentation to support that it is in compliance with applicable compliance areas related to the Title I Grant Condition: For the following compliance sections, the district was not able to find documentation to support compliance with the applicable standards for the year ended June 30, 2023: - Eligibility – Schoolwide plans and Comparability - Earmarking – Carryover Waiver - Special Tests – Assessment System Security As a result, the organization was not able to prove that they were in compliance with the applicable requirements of the Title I Part A grant. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office and curriculum department at year end, resulting in a lack of skills, knowledge, and experience related to proper documentation of grant compliance. Recommendation: We recommend that the organization reviews all compliance requirements of the Title I grant and reviews the documentation that they currently have on hand to be sure that going forward, all documentation is properly maintained. Additionally, we recommend that the district reviews compliance standards of the grants with all applicable staff to ensure that they understand the importance of maintaining proper documentation. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-004
2023-004 – Material Weakness and Material Noncompliance – Title I Budgets - Allowability Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the Title I Part A grant, the district budgeted completed a budget within MEGS+, however, the amount that was approved in the districts final board approved budget amendment did not match the amounts by function in MEGS+. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-005
2023-005 – Material Weakness and Material Noncompliance – Compliance Areas Documentation Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The school district should maintain proper documentation to support that it is in compliance with applicable compliance areas related to the Title I Grant Condition: For the following compliance sections, the district was not able to find documentation to support compliance with the applicable standards for the year ended June 30, 2023: - Eligibility – Schoolwide plans and Comparability - Earmarking – Carryover Waiver - Special Tests – Assessment System Security As a result, the organization was not able to prove that they were in compliance with the applicable requirements of the Title I Part A grant. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office and curriculum department at year end, resulting in a lack of skills, knowledge, and experience related to proper documentation of grant compliance. Recommendation: We recommend that the organization reviews all compliance requirements of the Title I grant and reviews the documentation that they currently have on hand to be sure that going forward, all documentation is properly maintained. Additionally, we recommend that the district reviews compliance standards of the grants with all applicable staff to ensure that they understand the importance of maintaining proper documentation. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-003
2023-003 – Material Weakness and Material Noncompliance – ESSER Budgets - Allowability Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to properly budget for all funds by function that are expected to be spent. Condition: For the ESSER II formula grant, the district budgeted for the full amount spent in the current year, all under one function. Additionally, we noted that the district had completed a budget for the ESSER III program within MEGS+, however, they failed to include the budgeted amount within their year end approved final budget. Questioned costs: None Cause and effect: This was caused due to significant turnover in the business office at year end, resulting in a lack of skills, knowledge, and experience, related to amending the year end final budget. Recommendation: We recommend that the district ensures that the budget is properly completed and amended before year end, and that the district monitors the budget throughout the year to ensure that items are being properly budgeted for. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2023-006
2023-006 – Material Weakness and Material Noncompliance – Cash Management Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses. Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired. Questioned costs: None Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end. Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.