FAC Explorer

Audit 328887

FY End
2024-06-30
Total Expended
$3.59M
Findings
10
Programs
12
Organization: Oakridge Public Schools (MI)
Year: 2024 Accepted: 2024-11-19
Auditor: Brickley Delong PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
508325 2024-001 Significant Deficiency - L
508326 2024-001 Significant Deficiency - L
508327 2024-001 Significant Deficiency - L
508328 2024-001 Significant Deficiency - L
508329 2024-001 Significant Deficiency - L
1084767 2024-001 Significant Deficiency - L
1084768 2024-001 Significant Deficiency - L
1084769 2024-001 Significant Deficiency - L
1084770 2024-001 Significant Deficiency - L
1084771 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $512,185 - 0
10.553 School Breakfast Program $322,002 Yes 1
84.027 Special Education Grants to States $252,180 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $59,483 - 0
10.558 Child and Adult Care Food Program $52,292 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $39,439 - 0
10.559 Summer Food Service Program for Children $32,665 Yes 1
84.424 Student Support and Academic Enrichment Program $31,395 - 0
84.425 Education Stabilization Fund $9,027 - 0
93.778 Medical Assistance Program $4,172 - 0
84.365 English Language Acquisition State Grants $2,985 - 0
10.555 National School Lunch Program $759 Yes 1

Contacts

Name Title Type
RVE6FL9ENM88 Todd Hronek Auditee
2317887109 Jennifer Wheeler Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District.
Title: 2 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 3 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: 4 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accrued revenues at July 1, 2023 and prior year expenditures were increased for the following grant: See Notes to SEFA for accompanying table.
Title: 5 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Reconciliation of revenues from federal sources per governmental funds financial statements and expenditures per single audit report Schedule of Expenditures of Federal Awards. See Notes to SEFA for accompanying table.

Finding Details

Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.
Finding 2024-001
Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.