FAC Explorer

Audit 329348

FY End
2024-06-30
Total Expended
$1.66M
Findings
24
Programs
9
Organization: Cornerstone Jefferson-Douglass Academy (MI)
Year: 2024 Accepted: 2024-11-21
Auditor: Uhy LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509688 2024-004 Material Weakness - C
509689 2024-005 Material Weakness - L
509690 2024-006 Material Weakness - AB
509691 2024-007 Material Weakness - P
509692 2024-004 Material Weakness - C
509693 2024-005 Material Weakness - L
509694 2024-006 Material Weakness - AB
509695 2024-007 Material Weakness - P
509696 2024-004 Material Weakness - C
509697 2024-005 Material Weakness - L
509698 2024-006 Material Weakness - AB
509699 2024-007 Material Weakness - P
1086130 2024-004 Material Weakness - C
1086131 2024-005 Material Weakness - L
1086132 2024-006 Material Weakness - AB
1086133 2024-007 Material Weakness - P
1086134 2024-004 Material Weakness - C
1086135 2024-005 Material Weakness - L
1086136 2024-006 Material Weakness - AB
1086137 2024-007 Material Weakness - P
1086138 2024-004 Material Weakness - C
1086139 2024-005 Material Weakness - L
1086140 2024-006 Material Weakness - AB
1086141 2024-007 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.425U Education Stabilization Fund (esf) $656,053 Yes 4
84.010 Title I Grants to Local Educational Agencies $366,249 - 0
10.553 School Breakfast Program $144,764 - 0
84.027 Special Education Grants to States $93,078 - 0
84.424 Student Support and Academic Enrichment Program $51,001 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $39,420 Yes 4
10.555 National School Lunch Program $16,692 - 0
10.559 Summer Food Service Program for Children $13,082 - 0
84.425W Education Stabilization Fund (esf) $260 Yes 4

Contacts

Name Title Type
QM7QAG58A984 Mary Ann Johnson Auditee
2483302557 Karen Shafik Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Cornerstone Jefferson-Douglass Academy (the "Academy") for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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). Revenue has been accrued at June 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. USDA commodities have been recognized as revenue and expenditures when received by the Academy. For purposes of charging indirect costs to federal awards, the Academy has not elected to use the 10% de minimus cost rate. The Academy administers a number of federal grants, which are paid under reimbursement arrangements in which the Academy bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds of the Academy. Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. De Minimis Rate Used: N Rate Explanation: Auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Cornerstone Jefferson-Douglass Academy (the "Academy") for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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). Revenue has been accrued at June 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue, USDA commodities have been recognized as revenue and expenditures when received by the Academy. For purposes of charging indirect costs to federal awards, the Academy has not elected to use the 10% de minimus cost rate. The Academy administers a number of federal grants, which are paid under reimbursement arrangements in which the Academy bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds of the Academy. Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy.
Title: NONE 2 - NONCASH ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Cornerstone Jefferson-Douglass Academy (the "Academy") for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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). Revenue has been accrued at June 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. USDA commodities have been recognized as revenue and expenditures when received by the Academy. For purposes of charging indirect costs to federal awards, the Academy has not elected to use the 10% de minimus cost rate. The Academy administers a number of federal grants, which are paid under reimbursement arrangements in which the Academy bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds of the Academy. Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. De Minimis Rate Used: N Rate Explanation: Auditee did not use the de minimis cost rate. The value of the noncash assistance (commodities) received was determined in accordance with the provisions of the Uniform Guidance. The Receipient Entitle Balance Report is utilized to determine the value of commodities distributed to the Academy.
Title: NOTE 3 - CASH MANAGEMENT SYSTEM AND GRANT AUDITOR REPORT UTILIZATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Cornerstone Jefferson-Douglass Academy (the "Academy") for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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). Revenue has been accrued at June 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. USDA commodities have been recognized as revenue and expenditures when received by the Academy. For purposes of charging indirect costs to federal awards, the Academy has not elected to use the 10% de minimus cost rate. The Academy administers a number of federal grants, which are paid under reimbursement arrangements in which the Academy bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds of the Academy. Because the Schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Academy. De Minimis Rate Used: N Rate Explanation: Auditee did not use the de minimis cost rate. The Academy utilized the MDE NexSys and Grant Auditor Report (GAR) in preparing the Schedule.

Finding Details

Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Internal controls over cash management compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for cash management, it was noted that 2 out of 2 drawdown requests selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Drawdown requests did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Internal controls over reporting compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for reporting, it was noted that 1 out of 1 report selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Internal controls over activities allowed or unallowed and allowable cost and cost principles compliance requirements to be reviewed Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness in internal control over compliance Repeat Finding: No Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides 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 guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our testing for activities allowed or unallowed, allowable costs/cost principles, it was noted that 6 out of 6 payroll related disbursements selected for testing did not have evidence of review and approval. Cause: Management did not fully implement their internal control policies and procedures as there was no evidence of review and approvals, nor was documentation retained. Effect: Payroll related reports did not have evidence of review and approval. Recommendation: We recommend that management review its procedures and controls in place to ensure that reports and supporting documentation are retained and have proper evidence of review and approval. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.
Finding 2024-007
Data collection to be completed timely Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.425, Department of Education, Education Stabilization Fund and 84.367, Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) Federal Award Identification Number and Year: 213713 & 240520 Pass-through Entity: Michigan Department of Education Finding Type: Material weakness over compliance and internal controls over compliance Criteria: Per 2 CFR 200.512(a)(1), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501(b), a non­ Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition: The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2023. Cause: The Academy's books and records for the 2023 fiscal year were not reconciled or closed in a timely manner. The data collection forms were not submitted within the required time. Effect: Data collection forms were not submitted on time. Recommendation: We recommend that the Academy develop a reliable system to close the financial records in a timely manner. View of responsible officials and planned corrective action plan: Management agrees with the finding. See corrective action plan.