Audit 327909

FY End
2024-06-30
Total Expended
$2.20M
Findings
12
Programs
10
Organization: Brandywine Community Schools (MI)
Year: 2024 Accepted: 2024-11-11

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
505279 2024-002 Material Weakness - P
505280 2024-003 Significant Deficiency Yes A
505281 2024-002 Material Weakness - P
505282 2024-003 Significant Deficiency Yes A
505283 2024-002 Material Weakness - P
505284 2024-003 Significant Deficiency Yes A
1081721 2024-002 Material Weakness - P
1081722 2024-003 Significant Deficiency Yes A
1081723 2024-002 Material Weakness - P
1081724 2024-003 Significant Deficiency Yes A
1081725 2024-002 Material Weakness - P
1081726 2024-003 Significant Deficiency Yes A

Contacts

Name Title Type
JKQHCE8NV1D8 Ray Wilburn Auditee
2696847150 Alex Schaeffer Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported in the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals 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. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimus indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.

Finding Details

Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.
Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.
Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.