FAC Explorer

Audit 327675

FY End
2024-06-30
Total Expended
$115.35M
Findings
4
Programs
34
Organization: School District of the City of Dearborn, Michigan (MI)
Year: 2024 Accepted: 2024-11-07
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504923 2024-001 Material Weakness - B
504924 2024-001 Material Weakness - B
1081365 2024-001 Material Weakness - B
1081366 2024-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $30.21M Yes 0
84.268 Federal Direct Student Loans $14.22M Yes 0
84.010 Title I Grants to Local Educational Agencies $11.51M Yes 1
10.553 School Breakfast Program - Cash Assistance $1.88M - 0
84.048 Career and Technical Education -- Basic Grants to States $1.73M - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $1.13M - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.12M - 0
84.365 English Language Acquisition State Grants $1.02M - 0
84.007 Federal Supplemental Educational Opportunity Grants $950,160 Yes 0
84.424 Student Support and Academic Enrichment Program $543,086 - 0
10.555 National School Lunch Program - Cash Assistance $479,656 - 0
84.425 Covid-19 - Education Stabilization Fund $434,090 - 0
84.002 Adult Education - Basic Grants to States $390,180 - 0
10.582 Fresh Fruit and Vegetable Program $272,404 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $243,018 - 0
84.173 Special Education Preschool Grants $203,595 - 0
10.559 Summer Food Service Program for Children $199,371 - 0
84.033 Federal Work-Study Program $191,192 Yes 0
93.778 Medical Assistance Program $136,320 - 0
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $65,103 - 0
17.285 Registered Apprenticeship $55,845 - 0
17.268 H-1b Job Training Grants $47,775 - 0
93.860 Emerging Infections Sentinel Networks $38,947 - 0
93.310 Trans-Nih Research Support $25,850 - 0
10.558 Child and Adult Care Food Program $22,652 - 0
17.258 Wioa Adult Program $18,476 - 0
84.027 Special Education Grants to States $13,681 - 0
84.184 School Safely National Activities $12,000 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $10,000 - 0
47.076 Stem Education (formerly Education and Human Resources) $5,221 - 0
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $5,188 - 0
10.555 National School Lunch Program - Commodities $2,907 - 0
93.859 Biomedical Research and Research Training $1,024 - 0
81.U01 Battery Workforce Challenge - Argonne National Labs Subaward $304 - 0

Contacts

Name Title Type
MCNTVJKULZE1 Thomas Wall Auditee
3138270304 Jeffrey C. Higgins Auditor
No contacts on file

Notes to SEFA

Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of School District of the City of Dearborn, Michigan (the “School District ”) under programs of the federal government for the year ended June 30, 2024. 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 (the “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, changes in net position, or cash flows of the School District. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. The pass through entity identifying numbers are presented where available. The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. During the year ended June 30, 2024, there was an adjustment made to the Local Food for Schools grant (ALN 10.185) passed through the Michigan Department of Education for $3,846, resulting from a reduction in the previously approved award amount. As allowable and in accordance with federal regulations issued by the U.S. Department of Education, the School District carried forward $68,738 of the 2022-2023 Federal Supplemental Educational Opportunity Grants (SEOG) (84.007) award, which it spent in the 2023-2024 award year. The School District also carried forward $2,932 of the 2023-2024 SEOG award and $61,435 of the 2023-2024 Federal Work-Study Program (FWS) (84.033), which will be spent in the 2024-2025 award year. In addition, the School District transferred $153,589 of the 2023-2024 FWS award to the SEOG award, which it expended in the 2023-2024 award year.
Title: Grant Auditor Report Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of School District of the City of Dearborn, Michigan (the “School District ”) under programs of the federal government for the year ended June 30, 2024. 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 (the “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, changes in net position, or cash flows of the School District. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. The pass through entity identifying numbers are presented where available. The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report (GAR) in preparing the schedule of expenditures of federal awards. Differences, if any, between the GAR and the schedule of expenditures of federal awards relate to the timing of payments and the fiscal year to which the payments relate. Unreconciled differences, if any, have been disclosed to the auditor.
Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of School District of the City of Dearborn, Michigan (the “School District ”) under programs of the federal government for the year ended June 30, 2024. 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 (the “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, changes in net position, or cash flows of the School District. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. The pass through entity identifying numbers are presented where available. The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance and is reported on the schedule of federal expenditures.

Finding Details

Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 84.010 - Title I Grants to Local Education Agencies Federal Award Identification Number and Year - 231530, 241530 Pass through Entity - Michigan Department of Education Finding Type - Material weakness Repeat Finding - No Criteria - The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, paragraph C.2. The indirect cost rate is approved by the Michigan Department of Education. Condition - The School District did not accurately apply the approved indirect cost rate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Proper segregation of duties and review functions are critical key internal control functions to prevent errors or irregularities in financial reporting. The indirect cost allocation for the Title I program included an error in the indirect cost rate applied as identified during the audit. Management reduced the indirect costs charged to the Title I program by $615,547 to correct the error. Cause and Effect - The School District calculated indirect costs using an inaccurate rate. The School District reported indirect costs in excess of the approved rate for the federal program. Recommendation - We recommend that a review of the indirect cost calculations occur to detect errors in the indirect cost rates applied. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and is in the process of enhancing procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 84.010 - Title I Grants to Local Education Agencies Federal Award Identification Number and Year - 231530, 241530 Pass through Entity - Michigan Department of Education Finding Type - Material weakness Repeat Finding - No Criteria - The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, paragraph C.2. The indirect cost rate is approved by the Michigan Department of Education. Condition - The School District did not accurately apply the approved indirect cost rate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Proper segregation of duties and review functions are critical key internal control functions to prevent errors or irregularities in financial reporting. The indirect cost allocation for the Title I program included an error in the indirect cost rate applied as identified during the audit. Management reduced the indirect costs charged to the Title I program by $615,547 to correct the error. Cause and Effect - The School District calculated indirect costs using an inaccurate rate. The School District reported indirect costs in excess of the approved rate for the federal program. Recommendation - We recommend that a review of the indirect cost calculations occur to detect errors in the indirect cost rates applied. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and is in the process of enhancing procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 84.010 - Title I Grants to Local Education Agencies Federal Award Identification Number and Year - 231530, 241530 Pass through Entity - Michigan Department of Education Finding Type - Material weakness Repeat Finding - No Criteria - The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, paragraph C.2. The indirect cost rate is approved by the Michigan Department of Education. Condition - The School District did not accurately apply the approved indirect cost rate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Proper segregation of duties and review functions are critical key internal control functions to prevent errors or irregularities in financial reporting. The indirect cost allocation for the Title I program included an error in the indirect cost rate applied as identified during the audit. Management reduced the indirect costs charged to the Title I program by $615,547 to correct the error. Cause and Effect - The School District calculated indirect costs using an inaccurate rate. The School District reported indirect costs in excess of the approved rate for the federal program. Recommendation - We recommend that a review of the indirect cost calculations occur to detect errors in the indirect cost rates applied. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and is in the process of enhancing procedures.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 84.010 - Title I Grants to Local Education Agencies Federal Award Identification Number and Year - 231530, 241530 Pass through Entity - Michigan Department of Education Finding Type - Material weakness Repeat Finding - No Criteria - The School District applies the simplified method to determine indirect costs for the Title I program. The allocation of indirect costs and the computation of an indirect cost rate may be accomplished through simplified allocation procedures described in 2 CFR Part 200, Appendix VII, paragraph C.2. The indirect cost rate is approved by the Michigan Department of Education. Condition - The School District did not accurately apply the approved indirect cost rate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Proper segregation of duties and review functions are critical key internal control functions to prevent errors or irregularities in financial reporting. The indirect cost allocation for the Title I program included an error in the indirect cost rate applied as identified during the audit. Management reduced the indirect costs charged to the Title I program by $615,547 to correct the error. Cause and Effect - The School District calculated indirect costs using an inaccurate rate. The School District reported indirect costs in excess of the approved rate for the federal program. Recommendation - We recommend that a review of the indirect cost calculations occur to detect errors in the indirect cost rates applied. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and is in the process of enhancing procedures.