FAC Explorer

Audit 319370

FY End
2023-06-30
Total Expended
$2.24M
Findings
6
Programs
9
Organization: Madison-Carver Academy (MI)
Year: 2023 Accepted: 2024-09-11
Auditor: The Clairmount Group Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496448 2023-001 Material Weakness Yes P
496449 2023-002 Material Weakness Yes P
496450 2023-003 Material Weakness Yes P
1072890 2023-001 Material Weakness Yes P
1072891 2023-002 Material Weakness Yes P
1072892 2023-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.07M Yes 3
84.010 Title I Grants to Local Educational Agencies $393,529 - 0
84.027 Special Education_grants to States $128,576 - 0
10.553 School Breakfast Program $76,557 - 0
84.367 Improving Teacher Quality State Grants $17,810 - 0
10.565 Commodity Supplemental Food Program $17,527 - 0
10.555 National School Lunch Program $4,600 - 0
84.424 Student Support and Academic Enrichment Program $2,251 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
RL22K6GR3YR7 Mary Anne Johnson Auditee
2483302557 Lashanda Thomas Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - GRANT AUDITOR’S REPORT Accounting Policies: The accompanying schedule of federal awards (the “Schedule”) includes the federal grant activity of Madison- Carver Academy under programs of the federal government for the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the same basis of accounting as the general purpose financial statements. 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Because the Schedule presents only a selected portion of the operations of Madison-Carver Academy, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows, if appli le, of Madison-Carver Academy. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Management has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Management has utilized the Cash Management System (CMS) Grant Auditor’s Report in preparing the schedule of expenditure of federal awards. There were no exceptions due to the timing of cash receipts.
Title: NOTE 3 - NONCASH ASSISTANCE Accounting Policies: The accompanying schedule of federal awards (the “Schedule”) includes the federal grant activity of Madison- Carver Academy under programs of the federal government for the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the same basis of accounting as the general purpose financial statements. 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Because the Schedule presents only a selected portion of the operations of Madison-Carver Academy, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows, if appli le, of Madison-Carver Academy. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Management has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The value of noncash assistance received was determined in accordance with the provisions of Uniform Guidance.

Finding Details

Finding 2023-001
Criteria The Academy’s internal control structure should ensure that the accounting data is appropriately calculated, reconciled, and reported in accordance with generally accepted accounting principles. Condition The Academy’s accounts required significant adjustments to the general ledger to properly reflect the appropriate balance after the books and records were presented for audit. Cause/Effect While the accounts were reconciled throughout the year, the reconciliations completed had certain instances where the year-end reconciliation process didn’t match to the general ledger. Recommendation The Academy should institute monthly and yearly closing procedures to ensure that all accounts are reconciled and match the general ledger.
Finding 2023-002
Criteria The Academy should have appropriate overall monitoring of the general ledger to ensure timely and accurate financial statements. Condition The Academy lacked appropriate overall monitoring of account balances during the year to compile complete and accurate financial reports that resulted in many auditor-proposed journal entries. Cause/Effect The Academy did not identify the resources necessary to ensure general ledger accounts were monitored and analyzed by appropriate individuals, including taking an overview of fund activity to finalize the accounting records. As a result of the lack of appropriate overall monitoring procedures, there we many auditor-proposed journal entries. Recommendation The Academy should develop an overall monitoring procedure to ensure that all fund activity is complete, accurate, and logical. This includes assigning an appropriate individual to each general ledger account and several individuals be responsible for the entire general ledger and financial statements to perform monitoring, analytical analysis, and adjustment as needed.
Finding 2023-003
Criteria Internal control structure should show the custody over cash is segregated and accounted for to prevent thief and ensure accounting data is recorded correctly. Condition Of the items selected for testing cash receipt controls, there was no documentation of individuals handling cash, nor physical deposits logged. Cause/Effect While cash receipts were recorded in the ledger throughout the year, the supporting documentation did not present controls over cash. The effect was to cause missing documentation and unable to trace and agree on testing items to the deposit log. Recommendation The receivable process should be revamped to include a weekly deposit log that tracks and dates the individual collecting, the amount of money collected, the individual who deposited the funds, the purpose/reason for the funds, and includes account coding. After the deposit is made, all documents should be filed away together. If documented and the process is entirely followed by all those individuals handling cash, then receipts will be properly and easily recorded to ensure fairly statement monthly financial statements
Finding 2023-001
Criteria The Academy’s internal control structure should ensure that the accounting data is appropriately calculated, reconciled, and reported in accordance with generally accepted accounting principles. Condition The Academy’s accounts required significant adjustments to the general ledger to properly reflect the appropriate balance after the books and records were presented for audit. Cause/Effect While the accounts were reconciled throughout the year, the reconciliations completed had certain instances where the year-end reconciliation process didn’t match to the general ledger. Recommendation The Academy should institute monthly and yearly closing procedures to ensure that all accounts are reconciled and match the general ledger.
Finding 2023-002
Criteria The Academy should have appropriate overall monitoring of the general ledger to ensure timely and accurate financial statements. Condition The Academy lacked appropriate overall monitoring of account balances during the year to compile complete and accurate financial reports that resulted in many auditor-proposed journal entries. Cause/Effect The Academy did not identify the resources necessary to ensure general ledger accounts were monitored and analyzed by appropriate individuals, including taking an overview of fund activity to finalize the accounting records. As a result of the lack of appropriate overall monitoring procedures, there we many auditor-proposed journal entries. Recommendation The Academy should develop an overall monitoring procedure to ensure that all fund activity is complete, accurate, and logical. This includes assigning an appropriate individual to each general ledger account and several individuals be responsible for the entire general ledger and financial statements to perform monitoring, analytical analysis, and adjustment as needed.
Finding 2023-003
Criteria Internal control structure should show the custody over cash is segregated and accounted for to prevent thief and ensure accounting data is recorded correctly. Condition Of the items selected for testing cash receipt controls, there was no documentation of individuals handling cash, nor physical deposits logged. Cause/Effect While cash receipts were recorded in the ledger throughout the year, the supporting documentation did not present controls over cash. The effect was to cause missing documentation and unable to trace and agree on testing items to the deposit log. Recommendation The receivable process should be revamped to include a weekly deposit log that tracks and dates the individual collecting, the amount of money collected, the individual who deposited the funds, the purpose/reason for the funds, and includes account coding. After the deposit is made, all documents should be filed away together. If documented and the process is entirely followed by all those individuals handling cash, then receipts will be properly and easily recorded to ensure fairly statement monthly financial statements