FAC Explorer

Audit 36480

FY End
2022-06-30
Total Expended
$4.62M
Findings
12
Programs
13
Organization: Airport Community Schools (MI)
Year: 2022 Accepted: 2022-12-01
Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37803 2022-003 Material Weakness - N
37804 2022-003 Material Weakness - N
37805 2022-003 Material Weakness - N
37806 2022-003 Material Weakness - N
37807 2022-003 Material Weakness - N
37808 2022-003 Material Weakness - N
614245 2022-003 Material Weakness - N
614246 2022-003 Material Weakness - N
614247 2022-003 Material Weakness - N
614248 2022-003 Material Weakness - N
614249 2022-003 Material Weakness - N
614250 2022-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $455,209 - 0
84.425 Education Stabilization Fund $438,462 Yes 1
84.010 Title I Grants to Local Educational Agencies $437,406 - 0
10.559 Summer Food Service Program for Children $127,171 - 0
84.367 Improving Teacher Quality State Grants $88,771 - 0
10.555 National School Lunch Program $60,900 - 0
84.048 Career and Technical Education -- Basic Grants to States $28,558 - 0
10.558 Child and Adult Care Food Program $25,703 - 0
84.424 Student Support and Academic Enrichment Program $19,597 - 0
93.778 Medical Assistance Program $9,413 - 0
84.365 English Language Acquisition State Grants $5,088 - 0
84.047 Trio_upward Bound $3,100 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
WJWWENEB46L1 Theresa Carrell Auditee
7346542414 Nathan C. Baldermann, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION TO BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Airport Community Schools (the District) under programs of the federal government for the year ended June 30, 2022. 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 District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the District's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the financial reports. The amounts reported on the Grant Auditor Report reconcile with this Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for table

Finding Details

Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023
Finding 2022-003
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023