Audit 327697

FY End
2024-06-30
Total Expended
$9.40M
Findings
2
Programs
24
Organization: Oak Park School District (MI)
Year: 2024 Accepted: 2024-11-08
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
504946 2024-002 Material Weakness - N
1081388 2024-002 Material Weakness - N

Contacts

Name Title Type
NEWCHR58KNA6 Sharrece Farris Auditee
2483367714 Michael Rolka Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Oak Park School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Oak Park School 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 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 Oak Park School District, it is not intended to and does not present the financial position or changes in financial position of Oak Park School District.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Oak Park School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal sources revenue per the financial statements: $10,554,534, Reconciling items: Current year deferred inflows of resources: $344,287, Prior year deferred inflows of resources: ($1,497,453), Total expenditures of federal awards: $9,401,368
Title: Funds Transferred to Subrecipients Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Oak Park School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schools District did not transfer any federal funds to subrecipients during the fiscal year.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Oak Park School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal amounts reported on the grant auditor report are in agreement with the SEFA. The amounts reported on the recipient retitlement balance report agree with the SEFA for U.S.D.A. donated food commodities.
Title: Adjustments Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Oak Park School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Adjustments represent prior year amounts that have been unobligated or for which the Michigan Department of Education has applied funds to other grants based on prior year amounts overdrawn.

Finding Details

Finding 2024-002 – Material Weakness & Material Noncompliance – Special Tests and Provisions related to the Education Stabilization Fund, Assistance Listing Number 84.425U, Award Number 213713/2122 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 School District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. Condition: As a result of our audit procedures, we identified that there was no prevailing wage clause in the construction contracts that the School District charged to the Education Stabilization Fund grant. Cause and Effect: The School District entered into a construction contract and paid a total of $443,281 related to the contract. The amount paid includes both labor and materials in the amount of $212,410 and $230,871, respectively. There was no prevailing wage clause within the contract, and the contractors have indicated that prevailing wage rates were not paid. The effect is noncompliance related to special tests and provisions because prevailing wages were not paid. Questioned Costs: Questioned costs cannot be determined because we do not know the related prevailing wage rates applicable to this type of work. The maximum questioned costs are $212,410 as that is the installation cost (labor charges). Recommendation: We recommend the School District take a team approach with finance and operations to expand its control over grant compliance, particularly in regard to reviewing construction contracts that are charged to grants to ensure all applicable compliance requirements are included. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2024-002 – Material Weakness & Material Noncompliance – Special Tests and Provisions related to the Education Stabilization Fund, Assistance Listing Number 84.425U, Award Number 213713/2122 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 School District’s pass-through entity Michigan Department of Education (MDE), as it relates to federally funded grants. Condition: As a result of our audit procedures, we identified that there was no prevailing wage clause in the construction contracts that the School District charged to the Education Stabilization Fund grant. Cause and Effect: The School District entered into a construction contract and paid a total of $443,281 related to the contract. The amount paid includes both labor and materials in the amount of $212,410 and $230,871, respectively. There was no prevailing wage clause within the contract, and the contractors have indicated that prevailing wage rates were not paid. The effect is noncompliance related to special tests and provisions because prevailing wages were not paid. Questioned Costs: Questioned costs cannot be determined because we do not know the related prevailing wage rates applicable to this type of work. The maximum questioned costs are $212,410 as that is the installation cost (labor charges). Recommendation: We recommend the School District take a team approach with finance and operations to expand its control over grant compliance, particularly in regard to reviewing construction contracts that are charged to grants to ensure all applicable compliance requirements are included. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.