FAC Explorer

Audit 320292

FY End
2023-06-30
Total Expended
$2.34M
Findings
6
Programs
10
Organization: Cornerstone Jefferson-Douglass Academy (MI)
Year: 2023 Accepted: 2024-09-22
Auditor: The Clairmount Group Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497548 2023-001 Material Weakness Yes P
497549 2023-002 Material Weakness Yes P
497550 2023-003 Material Weakness Yes A
1073990 2023-001 Material Weakness Yes P
1073991 2023-002 Material Weakness Yes P
1073992 2023-003 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.31M Yes 3
84.010 Title I Grants to Local Educational Agencies $329,476 - 0
10.553 School Breakfast Program $139,062 - 0
84.027 Special Education_grants to States $84,952 - 0
10.565 Commodity Supplemental Food Program $22,263 - 0
84.424 Student Support and Academic Enrichment Program $14,786 - 0
10.555 National School Lunch Program $6,070 - 0
84.367 Improving Teacher Quality State Grants $3,888 - 0
10.185 Local Food for School $1,315 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
QM7QAG58A984 Mary Anne Johnson Auditee
2483302557 Lashanda Thomas Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - GRANT AUDITOR’S REPORT Accounting Policies: Because the Schedule presents Academy, it is not intended to, a flows, if applicable, of Cornersto 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 to prepare the schedule of expenditures of federal awards. There were certain amounts that we he prior year Grant Auditor’s Report and included in the current year’s schedule due to timing.
Title: NOTE 3 - NONCASH ASSISTANCE Accounting Policies: Because the Schedule presents Academy, it is not intended to, a flows, if applicable, of Cornersto 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 in accordance with the provisions of Uniform Guidance.
Title: Note 4 – Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards Accounting Policies: Because the Schedule presents Academy, it is not intended to, a flows, if applicable, of Cornersto 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. Reconciliation of Basic Financial Statements Federal Revenue with Schedule of Expenditures of Federal Awards

Finding Details

Finding 2023-001
Finding Type: Material Weakness (Repeat Finding) 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 account balances 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 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
Finding Type: Material Weakness (Repeat Finding)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
Finding Type: Material Weakness and Material Noncompliance (Repeat Finding) Criteria There should be a process in place to ensure that the Academy complies with laws and regulations. Condition There were instances identified where the Academy was not in compliance with laws and regulations. State School Aid Act MCL 388.1718 requires that annual audits are submitted by November 1 to the Michigan Department of Education. Cause/Effect There was a change in staff and staff shortages which led to noncompliance with MCL 388.1718. Recommendation We recommend that the Academy implement a process that identifies specific individuals for identifying and monitoring applicable compliance requirements throughout the year.
Finding 2023-001
Finding Type: Material Weakness (Repeat Finding) 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 account balances 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 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
Finding Type: Material Weakness (Repeat Finding)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
Finding Type: Material Weakness and Material Noncompliance (Repeat Finding) Criteria There should be a process in place to ensure that the Academy complies with laws and regulations. Condition There were instances identified where the Academy was not in compliance with laws and regulations. State School Aid Act MCL 388.1718 requires that annual audits are submitted by November 1 to the Michigan Department of Education. Cause/Effect There was a change in staff and staff shortages which led to noncompliance with MCL 388.1718. Recommendation We recommend that the Academy implement a process that identifies specific individuals for identifying and monitoring applicable compliance requirements throughout the year.