FAC Explorer

Audit 345702

FY End
2024-06-30
Total Expended
$23.93M
Findings
14
Programs
15
Organization: Hamtramck Public Schools (MI)
Year: 2024 Accepted: 2025-03-12
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
526690 2024-003 Significant Deficiency - B
526691 2024-003 Significant Deficiency - B
526692 2024-003 Significant Deficiency - B
526693 2024-003 Significant Deficiency - B
526694 2024-002 Significant Deficiency - B
526695 2024-002 Significant Deficiency - B
526696 2024-002 Significant Deficiency - B
1103132 2024-003 Significant Deficiency - B
1103133 2024-003 Significant Deficiency - B
1103134 2024-003 Significant Deficiency - B
1103135 2024-003 Significant Deficiency - B
1103136 2024-002 Significant Deficiency - B
1103137 2024-002 Significant Deficiency - B
1103138 2024-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $747,540 - 0
84.027 Special Education Grants to States $370,082 Yes 0
84.365 English Language Acquisition State Grants $212,900 - 0
84.002 Adult Education - Basic Grants to States $190,009 - 0
84.010 Title I Grants to Local Educational Agencies $180,241 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $133,510 - 0
10.582 Fresh Fruit and Vegetable Program $89,772 - 0
84.048 Career and Technical Education -- Basic Grants to States $88,581 - 0
84.424 Student Support and Academic Enrichment Program $88,333 - 0
93.778 Medical Assistance Program $22,702 - 0
10.559 Summer Food Service Program for Children $20,334 - 0
10.558 Child and Adult Care Food Program $17,464 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $7,006 - 0
84.425 Education Stabilization Fund $5,068 Yes 1
10.555 National School Lunch Program $321 - 0

Contacts

Name Title Type
KWSBJWV1NJ47 Jim Larson-Shidler Auditee
3138729270 Brian Dixon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 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 Hamtramck Public Schools (the School District) under programs of the federal government for the year ended June 30, 2023. 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 changes in fund balance or net position of the School District.
Title: Reconciliation to the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal revenues per the financial statements reconcile the schedule of expenditures of federal awards as follows: Expenditures per SEFA $ 23,929,948 Amounts reported on the current year SEFA that did not meet the District's revenue recognition requirements and were therefore deferred in the fund statements: Fresh Fruit and Vegetable Program ( 27,398) Special Education Cluster - Grants to States ( 776,243) Career and Technical Education - Basic Grants to States ( 82,282) Title I ( 1,491,110) Title II ( 112,312) Title III ( 90,957) ESSER III ( 7,609,695) ESSER II - Homeless ( 5,068) Amounts reported on the prior year SEFA that did not meet the District's revenue recognition requirements and were therefore deferred in the fund statements in the prior year and recorded in the fund statements in the current year: Fresh Fruit and Vegetable Program 1 4,539 Federal Adult Ed English Literacy Civics 2 46,994 Career and Technical Education - Basic Grants to States 1 2,903 Title I 5 03,509 Title II 2 0,093 Title III 6 ,157 Title IV 3 5,799 ESSER II 1 ,358,486 Adjustments ( 307,867) Total revenues reported on the District's fund statements $ 15,625,496
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The School District did not transfer any federal funds to subrecipients during the year.
Title: Adjustments Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Adjustments to the schedule of expenditures of federal awards were made for $117,110 was made between grants 231530, Title I grants to Local Educational Agencies, and Title I RAG 22/23 (AL #84.010) for expenditures that had been included under the wrong grant number on the 2023 SEFA. An adjustment of $46,285 was made to project 230750, Title IV Student Support & Academic Enrichment for expenditures that were disallowed. An adjustment of $261,582 was also made to project 213712 COVID-19 ESSER II Formula for expenditures that were disallowed.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where 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. De Minimis Rate Used: N Rate Explanation: The School District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal amounts reported on the grant auditor report are in agreement with the schedule of expenditures of federal awards.

Finding Details

Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-003
Significant Deficiency and Noncompliance – Title I Allowable Costs Program information: Title I Grants to Local Educational Agencies, Title I Part I Imp Basic Programs. U.S. Department of Education, Passed through Michigan Department of Education, AL #84.010. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the Title I grant, we noted 3 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Questioned costs: $42,841 determined based on actual questioned costs of $1,930 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.
Finding 2024-002
Significant Deficiency and Noncompliance – ESSER Allowable Cost Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D. Criteria: The School District has a responsibility to implement proper controls over the payroll processes related to the grant. Condition: For the ESSER III formula grant, we noted 1 out of 40 payroll transactions, for which, the district was not able to produce the time sheet supporting the employees hours. Additionally, we noted 1 out of 40 payroll transactions for which the time sheet was not filled out, therefore making it impossible to support the amount that the employee was paid and charged to the grant. Questioned costs: $30,736 determined based on actual questioned costs of $1,044 extrapolated to the sample population Cause and effect: This was caused due to significant turnover in the business office and payroll department, resulting in a lack of controls being followed. Recommendation: We recommend that the district reviews payroll processes with all employees and supervisors to ensure that all time sheets are being properly filled out and maintained. Views of responsible officials: Management agrees with the finding. Corrective action plan: See attached corrective action plan.