Audit 326950

FY End
2024-06-30
Total Expended
$7.37M
Findings
18
Programs
16
Organization: Alpena Public Schools (MI)
Year: 2024 Accepted: 2024-11-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
504381 2024-001 Significant Deficiency - B
504382 2024-001 Significant Deficiency - B
504383 2024-001 Significant Deficiency - B
504384 2024-001 Significant Deficiency - B
504385 2024-001 Significant Deficiency - B
504386 2024-002 Significant Deficiency - G
504387 2024-002 Significant Deficiency - G
504388 2024-002 Significant Deficiency - G
504389 2024-002 Significant Deficiency - G
1080823 2024-001 Significant Deficiency - B
1080824 2024-001 Significant Deficiency - B
1080825 2024-001 Significant Deficiency - B
1080826 2024-001 Significant Deficiency - B
1080827 2024-001 Significant Deficiency - B
1080828 2024-002 Significant Deficiency - G
1080829 2024-002 Significant Deficiency - G
1080830 2024-002 Significant Deficiency - G
1080831 2024-002 Significant Deficiency - G

Contacts

Name Title Type
Q435QVKS6VS3 Mary Lyon Auditee
9893585009 Chelsea McConnell 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 principals contained in the Uniform Guidance, wherein 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. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. Alpena Public Schools has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. De Minimis Rate Used: N Rate Explanation: Alpena Public Schools has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards and Schedule of Federal Financial Assistance provided to Subrecipients (the Schedule) includes the federal award activity of Alpena Public Schools 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 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 Alpena Public Schools it is not intended to and does not present the financial position, changes in net assets, or cash flows of Alpena Public Schools.
Title: Relationship to Governmental Fund 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 principals contained in the Uniform Guidance, wherein 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. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. Alpena Public Schools has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. De Minimis Rate Used: N Rate Explanation: Alpena Public Schools has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Revenues from federal sources are reported in the School District's financial statements as follows:
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein 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. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. Alpena Public Schools has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. De Minimis Rate Used: N Rate Explanation: Alpena Public Schools has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education’s NexSys Grant Auditor Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the recipient entitlement balance report, or PAL Report, agree with the Schedule of Expenditures of Federal Awards for U.S.D.A. donated food commodities.
Title: Adjustments and Transfers Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein 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. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. Alpena Public Schools has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. De Minimis Rate Used: N Rate Explanation: Alpena Public Schools has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The School District had accrued $685 of expenditures against grant #84.425W (211012 2122) during the fiscal year of 2022-2023. During the current fiscal year, the Michigan Department of Education had adjusted the prior year to post against grant #84.425W (211010 2122) through the Grant Auditor Report. The School District adjusted the prior year accrual to reconcile to the current year Grant Auditor Report.
Title: Reconciliation to Michigan Department of Education’s NexSys Grant Auditor Report Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein 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. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. Alpena Public Schools has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. De Minimis Rate Used: N Rate Explanation: Alpena Public Schools has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The following shows a reconciliation of current year receipts per the Schedule of Expenditures of Federal Awards to current payments per Michigan Department of Education NexSys Grant Auditor Report:

Finding Details

2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-001 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Budget Allocation. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and #84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124; and American Rescue Plan Act, Homeless Children and Youth II (COVID-19), ALN # 84.425W, Award Number 211012 2122 Federal Agency: U.S. Department of Education 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. Title 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 function and object codes misallocated in comparison to the grant budget approved by MDE. Neither grant misallocations were material to the grants. 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 were not recorded accurately with the grant budget by either function or object codes. Questioned Costs – None. The grants were not overspent in total, nor would the grant expenditure tests have been considered unallowable if they had been correctly allocated with the budget. Career and Technical Education had five instances. American Rescue Plan Act, Homeless Children and Youth II had one instance which was adjusted and corrected. Recommendation – We recommend the School District expand its internal control over budgetary review of its grants, particularly in regard to reviewing MDE approved budgeted amounts to actual expenditures. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124 Federal Agency: U.S. Department of Education Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds. Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested. Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system. Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance. Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants. View of Responsible Officials – The School District agrees with our finding and recommendation. Planned Corrective Actions – See corrective action plan, annexed.