Audit 376550

FY End
2025-06-30
Total Expended
$3.84M
Findings
4
Programs
14
Organization: Cadillac Area Public Schools (MI)
Year: 2025 Accepted: 2025-12-19
Auditor: UHY LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1165754 2025-001 Material Weakness Yes N
1165755 2025-001 Material Weakness Yes N
1165756 2025-001 Material Weakness Yes N
1165757 2025-001 Material Weakness Yes N

Programs

Contacts

Name Title Type
K724KHSJ7A28 Emily Kearney Auditee
2318765009 Scott Hunter Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Cadillac Area 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Cadillac Area Public Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Cadillac Area Public Schools. The District does not pass through federal awards.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule 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. Cadillac Area Public Schools has elected to not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
See the Notes to the SEFA table instead
See the Notes to the SEFA table instead
U.S. Department of Education Adjustments were made for Assistance Listing #10.553 ($1,187) and #10.555 ($3,018) related to questionable costs of federal expenditures that were recaptured by MDE.

Finding Details

2025-001 Significant Deficiency in Internal Control (Reporting) Federal Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Pass-Through Entity: Michigan Department of Education Pass-Through Number: 251970, 241970, 251980, 251960, 241960, 250904, 940900 & Entitlement Commodities Federal Award Year: July 1, 2024 to September 30, 2025 Criteria: In accordance with OMB requirements, the District can only request funds for meal reimbursements based on total meals served, no more or no less. Condition: The District had one month of meal claims under the school nutrition program where the supporting documentation did not agree with the meal claim. Cause: The District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. Effect: The District’s internal controls were found to be ineffective as they claimed less meals than they should have, resulting in less revenue for the District. Questioned Costs: No questioned costs as the District did not claim more meals than they were supposed to during the year. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Identification of Repeat Findings: None Recommendation: The District should have an additional level of review as it relates to submitting meal claims to ensure the correct amount is submitted based on the supporting documentation. View of Responsible Officials: Per discussion with Aaron Burnett, Food Service Director, and Emily Kearney, CFO on September 9, 2025, the District recognized this one time issue and is implementing additional procedures to ensure that funds requested for meal reimbursements agree to total meals served.