FAC Explorer

Audit 341580

FY End
2024-06-30
Total Expended
$5.63M
Findings
2
Programs
14
Organization: School District of the City of Hazel Park (MI)
Year: 2024 Accepted: 2025-02-07
Auditor: Uhy LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522305 2024-002 Significant Deficiency - G
1098747 2024-002 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
84.027 Special Education Grants to States $937,167 Yes 0
84.010A Title I Grants to Local Educational Agencies $639,344 Yes 1
10.553 School Breakfast Program $546,882 - 0
84.367A Wioa Adult Program $77,601 - 0
10.558 Child and Adult Care Food Program $60,238 - 0
10.582 Fresh Fruit and Vegetable Program $55,745 - 0
84.424 Student Support and Academic Enrichment Program $54,118 - 0
93.778 Medical Assistance Program $39,902 - 0
84.365 English Language Acquisition State Grants $22,988 - 0
10.559 Summer Food Service Program for Children $16,836 - 0
84.173 Special Education Preschool Grants $11,224 Yes 0
10.579 Child Nutrition Discretionary Grants Limited Availability $10,000 - 0
84.425 Education Stabilization Fund $7,522 - 0
10.555 National School Lunch Program $994 - 0

Contacts

Name Title Type
WUTWHMJLM7L5 Matt Miller Auditee
2484176617 Amber Sutter Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District.
Title: NOTE 2 - SUMMARY OF SIGNIFCIANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or 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 pass-through entity identifying numbers are presented where available. The School District has not elected to use the 10% de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance.
Title: NOTE 3 - GRANT AUDITOR REPORT Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. Management has utilized the Michigan Department of Education (MDE) NexSys Grant Auditor Report (GAR) in preparing the Schedule. Differences, if any, between the GAR and the Schedule relate to the timing of payments and the fiscal year to which the payments relate.
Title: NOTE 4 - NONCASH ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. The value of the noncash assistance received was determined in accordance with the provisions of the Uniform Guidance and is reported on the Schedule.
Title: NOTE 5 - ADJUSTMENTS AND TRANSFERS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. During the year ended June 30, 2024, there were adjustments within the Title I, Part A program related to the Improving Basic Programs (ALN 84.010 A), Title III, Part A program related to English Learners (ALN 84.365), Title IV, Part A program related to Student Support & Academic Enrichment (ALN 84.424), & Education Stabilization Fund program related to Elementary and Secondary School Emergency Relief III (ALN 84.425U).
Title: NOTE 6 - RECONCILIATION OF REVENUE WITH EXPENDITURES OF FEDERAL AWARD PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the School District of the City of Hazel Park (the “School District”) for the year ended June 30, 2024. The information reported in the 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 (the “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 and changes in net position of the School District. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. See the Notes to the SEFA for Chart/Table

Finding Details

Finding 2024-002
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.010 A, Department of Education, Title I A, Improving Basic Programs Federal Award Identification Number and Year: 241530 Pass-through Entity: Michigan Department of Education Finding Type: Significant deficiency in internal control over compliance and noncompliance with parental involvement spending requirement. 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). Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.010 A, Department of Education, Title I A, Improving Basic Programs Federal Award Identification Number and Year: 241530 Pass-through Entity: Michigan Department of Education Finding Type: Significant deficiency in internal control over compliance and noncompliance with parental involvement spending requirement. 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: The School District is required to spend the 1% allocation of Parental Involvement for the Title I grant award. The allocation was properly recorded in the budget, but the School District did not spend the entire budgeted allocation required on Parental involvement during the fiscal year ended. Identification of How Questioned Costs Were Computed: N/A Questioned Costs: None Cause: Management did not properly monitor the parental involvement spending. The funds spent for parental involvement did not match the 1% allocation from the budget for the Federal award. The School Districts internal control policies and procedures did not ensure the proper amount of funds were spent on parental involvement.   Condition: The School District is required to spend the 1% allocation of Parental Involvement for the Title I grant award. The allocation was properly recorded in the budget, but the School District did not spend the entire budgeted allocation required on Parental involvement during the fiscal year ended. Identification of How Questioned Costs Were Computed: N/A Questioned Costs: None Cause: Management did not properly monitor the parental involvement spending. The funds spent for parental involvement did not match the 1% allocation from the budget for the Federal award. The School Districts internal control policies and procedures did not ensure the proper amount of funds were spent on parental involvement. Effect: The entire parental involvement allocation was not spent during the fiscal year ended. Recommendation: We recommend that management review its procedures and controls in place to ensure that parental Involvement spend matches the allocated amount per the budget reports and the supporting documentation are retained and have proper evidence of review. View of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.010 A, Department of Education, Title I A, Improving Basic Programs Federal Award Identification Number and Year: 241530 Pass-through Entity: Michigan Department of Education Finding Type: Significant deficiency in internal control over compliance and noncompliance with parental involvement spending requirement. 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). Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 84.010 A, Department of Education, Title I A, Improving Basic Programs Federal Award Identification Number and Year: 241530 Pass-through Entity: Michigan Department of Education Finding Type: Significant deficiency in internal control over compliance and noncompliance with parental involvement spending requirement. 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: The School District is required to spend the 1% allocation of Parental Involvement for the Title I grant award. The allocation was properly recorded in the budget, but the School District did not spend the entire budgeted allocation required on Parental involvement during the fiscal year ended. Identification of How Questioned Costs Were Computed: N/A Questioned Costs: None Cause: Management did not properly monitor the parental involvement spending. The funds spent for parental involvement did not match the 1% allocation from the budget for the Federal award. The School Districts internal control policies and procedures did not ensure the proper amount of funds were spent on parental involvement.   Condition: The School District is required to spend the 1% allocation of Parental Involvement for the Title I grant award. The allocation was properly recorded in the budget, but the School District did not spend the entire budgeted allocation required on Parental involvement during the fiscal year ended. Identification of How Questioned Costs Were Computed: N/A Questioned Costs: None Cause: Management did not properly monitor the parental involvement spending. The funds spent for parental involvement did not match the 1% allocation from the budget for the Federal award. The School Districts internal control policies and procedures did not ensure the proper amount of funds were spent on parental involvement. Effect: The entire parental involvement allocation was not spent during the fiscal year ended. Recommendation: We recommend that management review its procedures and controls in place to ensure that parental Involvement spend matches the allocated amount per the budget reports and the supporting documentation are retained and have proper evidence of review. View of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See corrective action plan.