Audit 328620

FY End
2024-06-30
Total Expended
$2.05M
Findings
14
Programs
13
Organization: Marquette Area Public Schools (MI)
Year: 2024 Accepted: 2024-11-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
508166 2024-001 Significant Deficiency - BI
508167 2024-001 Significant Deficiency - BI
508168 2024-001 Significant Deficiency - BI
508169 2024-001 Significant Deficiency - BI
508170 2024-001 Significant Deficiency - BI
508171 2024-001 Significant Deficiency - BI
508172 2024-001 Significant Deficiency - BI
1084608 2024-001 Significant Deficiency - BI
1084609 2024-001 Significant Deficiency - BI
1084610 2024-001 Significant Deficiency - BI
1084611 2024-001 Significant Deficiency - BI
1084612 2024-001 Significant Deficiency - BI
1084613 2024-001 Significant Deficiency - BI
1084614 2024-001 Significant Deficiency - BI

Contacts

Name Title Type
PHXTEXD2MHH9 James Lampman Auditee
9062255323 Michael Grentz Auditor
No contacts on file

Notes to SEFA

Title: NOTE D – OVERSIGHT AGENCY: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the 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. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts on the schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: The School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Department of Education is the current year’s oversight agency for the single audit as determined by the agency providing the largest share of the School District’s federal financial assistance.
Title: NOTE E – FINAL COST REPORT – FORM DS4044: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the 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. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts on the schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: The School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The final cost reports are not due until 60 days after the end of the grant period. The reports for the current year were not completed as of the date of our report. However, we reviewed the reports filed for the prior year grants and noted that they agreed with either the prior year audited figures or the prior year and current audit figures combined.
Title: NOTE F – SCHEDULE OF FEDERAL AWARDS: Accounting Policies: NOTE A – BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School District for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the 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. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts on the schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST RATE: The School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts reported as current payments on the R7120, Grant Section Auditors Report, reconcile with the Schedule of Federal Awards as follows: Current Payments per Grant Auditor Report: $4,351,470 Plus: Payments not on Grant Auditor Report: Passed through MARESA $133,203 Passed through USAC 72,877 Title VII 113,185 Food distribution commodities 112,432 431,697 Less: Accrued revenue at the beginning of the year: MARESA (107,210) Michigan Department of Education (3,429,172) Title VII (55,928) (3,592,310) Plus: Accrued (deferred) revenue at the end of the year: MARESA 98,389 Michigan Department of Education 764,989 Title VII - 863,378 Rounding - PER THE SCHEDULE OF FEDERAL EXPENDITURES $2,054,235 A reconciliation of expenditures on the Schedule of Federal Awards to federal revenue recognized is as follows: Total Federal Revenue Sources reported in the financial statements: General Fund $1,050,954 School Lunch Fund 1,003,281 Reconciling Items: Child Care Relief Fund federal revenue not reported on SEFA - Rounding - TOTAL FEDERAL AWARD EXPENDITURES REPORTED IN THE SCHEDULE OF FEDERAL AWARDS $2,054,235

Finding Details

2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.
2024-001 – Payments to Vendors Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster ALN(s): 10.553, 10.555, 10.559 Pass-through Agency: Michigan Department of Education Grant Number(s): 231970, 241970, 240910, 231960, 241960, 230900, 240900 Criteria: Board Police 6111 states that “internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and federal reports.” Payments to vendors should be substantiated by appropriate invoices that include details of the service provided for whom, when, how much, and other details required by the contracts and purchase orders. Condition: One transaction selected for testing included an invoice related to another entity; this invoice was erroneously paid in conjunction with an appropriate invoice. Cause: The vendor erroneously sent an incorrect invoice to the School District and the error was not noticed when the payment was authorized or when the payment was processed. Effect: The School District made a payment to a vendor for an unallowable expenditure. Perspective: The invoice erroneously paid totaled $144.14. This is approximately one percent error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $1,305. Recommendation: The School District should follow up with the vendor to correct the billing and review its invoice approval and payment process to ensure that only legitimate bills get processed.