FAC Explorer

Audit 375991

FY End
2025-06-30
Total Expended
$2.63M
Findings
4
Programs
11
Organization: Ecorse Public Schools (MI)
Year: 2025 Accepted: 2025-12-18
Auditor: YEO & YEO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165375 2025-002 Material Weakness Yes A
1165376 2025-002 Material Weakness Yes A
1165377 2025-002 Material Weakness Yes A
1165378 2025-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
10.555 NATIONAL SCHOOL LUNCH PROGRAM $539,961 Yes 0
84.027 SPECIAL EDUCATION GRANTS TO STATES $301,906 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $235,293 Yes 0
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $58,979 Yes 0
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $49,148 Yes 0
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $48,162 Yes 0
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $24,609 Yes 1
93.778 MEDICAL ASSISTANCE PROGRAM $15,715 Yes 0
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $13,146 Yes 0
10.558 CHILD AND ADULT CARE FOOD PROGRAM $2,730 Yes 0
84.425 EDUCATION STABILIZATION FUND $2,000 Yes 0

Contacts

Name Title Type
DYLVRC3ACAK4 Sarah Khan Auditee
3132944750 Timothy Crosson Jr. Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of Ecorse Public Schools under programs of the federal government for the year ended June 30, 2025. 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 Ecorse Public Schools, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Ecorse Public Schools.
The School District’s federal revenues per the financial statements did not agree to the schedule of expenditures of federal awards due to the following: Expenditures per the schedule of expenditures of federal awards $ 2,626,713 Title IV, Part A - Stronger Connections not received within 60 days (58,979) Federal revenues per the financial statements $ 2,567,734
The amounts reported on the recipient entitlement balance report agree with the schedule of expenditures of federal awards for U.S.D.A. donated food commodities. The federal amounts reported on the CMS Grant Auditor Report (GAR) were not in agreement with the SEFA as shown by the following: Federal Grantor Program Title Federal Assistance Listing Number Grant Number Reported on Schedule of Expenditures of Federal Awards Adjustments Due to Refund of Disallowed Expenditures Variance Due to Timing of Receivables Reported on Grant Auditor Report National School Lunch Program 10.555 251960 $ 442,891 $ - $ 9 7,070 $ 539,961 School Breakfast Program 10.553 251970 194,429 - 4 0,865 235,294 CACFP Cash-in-Lieu of Commodities 10.558 252010 2,380 - 1 08 2,488 CACFP Meals Reimbursement 10.558 251920 34,822 - 7 ,404 42,226 Title I, Part A Improving Basic Programs 84.010 231530 - (22,765) - (22,765) Title I, Part A Improving Basic Programs 84.010 241530 97,375 (4,765) (97,375) (4,765)
Adjustments for the Medicaid Cluster on the SEFA in the amount of $2,437 are cash receipts received in fiscal year June 30, 2025 that were not included in accounts receivable at June 30, 2024. Adjustments for Title I, Part A in the amount of $27,530 for amounts determined to be taken back by the Michigan Department of Education.
No amounts were provided to subrecipients.

Finding Details

Finding 2025-002
Allowable Activities – Allocable Wages, Chart of Accounts, and Budget Monitoring Program Name: Title I Grants to Local Educational Agencies – Assistance Listing 84.010 Awarding Agency: U.S. Department of Education, passed through Michigan Department of Education Finding Type: Material Weakness on Internal Controls over Compliance and Material Noncompliance Questioned Cost Amount: $156,818 removed from Title I expenditures Context / Criteria: The School District should maintain internal controls to document wages that accurately reflect the work performed based on 2CFR200.430(i). The internal controls should provide reasonable assurance that the charges are accurate, allowable, and properly allocated as to account and period. Additionally, transactions need to be recorded based on the Michigan School Accounting Manual. The manual has the appropriate account classification with regard to account code dimensions (fund, function, and object code). Condition: The School District improperly charged salaries to the Title I grant. Noted there was one employee that was overcharged to the grant based upon the budget. Cause / Effect: Management has not developed or implemented a control to sufficiently accumulate and document the individuals charged to Title I resulting in inaccuracies in financial reporting and overcharging of the grant. Additionally, the School District did not have adequate controls in place to ensure transactions were being recorded to the proper accounts based on fund, function, and object code. The lack of consistency caused unnecessary variations between the accounting records and supporting documentation. Recommendation: We recommend management implement procedures to document the employees charged throughout the year to ensure they are following the budget, and the School District review the Michigan School Accounting Manual and follow the guidelines for recording transactions with appropriate account classifications. Views of Responsible Officials and Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.