FAC Explorer

Audit 326829

FY End
2024-06-30
Total Expended
$2.60M
Findings
2
Programs
9
Organization: Shepherd Public School District (MI)
Year: 2024 Accepted: 2024-10-31
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504302 2024-002 Significant Deficiency - A
1080744 2024-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $436,844 - 0
84.010 Title I Grants to Local Educational Agencies $257,619 Yes 1
10.553 School Breakfast Program $179,747 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $79,889 - 0
10.555 National School Lunch Program $63,186 Yes 0
84.424 Student Support and Academic Enrichment Program $28,533 - 0
93.778 Medical Assistance Program $14,127 - 0
84.425 Education Stabilization Fund $12,746 - 0
84.365 English Language Acquisition State Grants $103 - 0

Contacts

Name Title Type
YEZJY3LXN2N5 Carl Seiter Auditee
9898285520 Christina Schaub Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Shepherd Public School District (the District) under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 District, it is not intended to and does not present its financial position or changes in net position of the District. Management has utilized the Nexsys cash management system and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards
Title: RECONCILIATION WITH AUDITED 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance Federal expenditures are reported as revenues in the following funds in the financial statements of the District: Fund Amount General Fund 1,917,924 Food Service Fund 873,204 Total federal revenues per financial statements 2,791,128Plus: Current year unavailable federal revenue 262,981 Less: Prior year unavailable federal revenue (452,945) Federal revenues subject to single audit 2,601,164

Finding Details

Finding 2024-002
Finding 2024-002 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES Type: Significant Deficiency in Internal Control / Noncompliance Program: Title I (ALN 84.010) Condition: Expenditures charged to the grant were over amounts authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Grant budget was not amended for increases in planned expenditures. Effect: Unallowed costs were charged to the grant based on / compared to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-002
Finding 2024-002 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES Type: Significant Deficiency in Internal Control / Noncompliance Program: Title I (ALN 84.010) Condition: Expenditures charged to the grant were over amounts authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Grant budget was not amended for increases in planned expenditures. Effect: Unallowed costs were charged to the grant based on / compared to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.