FAC Explorer

Audit 376652

FY End
2025-06-30
Total Expended
$1.50M
Findings
1
Programs
12
Organization: Baraga Area Schools (MI)
Year: 2025 Accepted: 2025-12-19
Auditor: ANDERSON TACKMAN & COMPANY PLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165810 2025-003 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
84.041 IMPACT AID $1.03M Yes 0
10.555 NATIONAL SCHOOL LUNCH PROGRAM $126,393 Yes 0
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $122,042 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $49,412 Yes 0
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $43,462 Yes 0
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $15,888 Yes 0
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $14,416 Yes 0
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,000 Yes 0
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $7,228 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $5,674 Yes 0
84.425 EDUCATION STABILIZATION FUND $4,954 Yes 0
84.358 RURAL EDUCATION $46 Yes 0

Contacts

Name Title Type
QLKKCMMF8YE7 Tracy Laplante Auditee
9063536664 Michael A. Grentz, CPA Auditor
No contacts on file

Notes to SEFA

The Department of Education is the current year’s oversight agency for the single audit as determined by the agency providing the largest share of the School District’s federal financial assistance.
The final cost reports are not due until 60 days after the end of the grant period. The reports for the current year were not completed as of the date of our report. However, we reviewed the reports filed for the prior year grants and noted that they agreed with either the prior year audited figures or the prior year and current audit figures combined.
The amounts reported as current payments on the R7120, Grant Section Auditors Report, reconcile with the Schedule of Federal Awards as follows: Current Payments per Grant Auditor Report: $380,442 Plus: Payments not on Grant Auditor Report: Direct programs $1,110,224 Food distribution commodities 19,697 1,129,921 Less: Accrued (deferred) revenue at the beginning of the year: Michigan Department of Education (43,111) Plus: Accrued (deferred) revenue at the end of the year: Michigan Department of Education 33,723 Rounding - PER THE SCHEDULE OF FEDERAL EXPENDITURES $1,500,975 A reconciliation of expenditures on the Schedule of Federal Awards to federal revenue recognized is as follows: Total Federal Revenue Sources reported in the financial statements: General Fund $1,273,838 School Lunch Fund 227,137 Rounding - TOTAL FEDERAL AWARD EXPENDITURES REPORTED IN THE SCHEDULE OF FEDERAL AWARDS $1,500,975

Finding Details

Finding 2025-003
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROLS AND NON-COMPLIANCE 2025-003 – UNALLOWABLE COSTS Federal Agency: U.S. Department of Agriculture Program Name: Child Nutrition Cluster Assistance Listing Number(s): 10.582 Pass-through Entity: Michigan Department of Education Grant Number(s): 250950 Criteria: Grant agreements describe both allowable and unallowable costs. It is the responsibility of the School District to have internal controls in place to ensure grant spending is properly monitored and expenses are allowable. Condition: The School District used grant funds to purchase frozen fruits and vegetables, which is unallowable under the Fresh Fruits and Vegetables Program grant agreement. Cause: The Fresh Fruits and Vegetables Program grant was new to the School District in the current year. The School District’s staff did not fully retain all the allowed and unallowed expenses under the grant when provided with the grant guidelines. Effect: The School District is not in compliance with the grant agreement. Questioned Costs: $2,178.68 Identification of How Questioned Costs were Computed: At the request of the Michigan Department of Education, the School District reviewed all invoices related to the Fresh Fruits and Vegetables Program for the grant year and determined the total unallowed costs were $2,178.68. Perspective: Two months of expenses were selected for testing from the Fresh Fruits and Vegetables Program. It was noted on the selected invoices that $1,080.07 of frozen foods were purchased. This is approximately a 44% error rate within the sample selection, which extrapolated out to the total population tested equates to approximately $3,180.32. However, the client reviewed all invoices and determined the total unallowed costs to be $2,178.68. Repeat Finding: No. Recommendation: Procedures should be put in place to ensure staff is aware of all the allowable and unallowable expenses under each grant. Food service staff should complete additional training, especially when a new grant is obtained. Views of Responsible Officials: Management agrees with the finding and has taken corrective action.