FAC Explorer

Audit 4071

FY End
2023-06-30
Total Expended
$5.83M
Findings
4
Programs
13
Organization: East China School District (MI)
Year: 2023 Accepted: 2023-11-27
Auditor: McBride-Manley & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2379 2023-002 Significant Deficiency - P
2380 2023-002 Significant Deficiency - P
578821 2023-002 Significant Deficiency - P
578822 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $367,926 - 0
10.553 School Breakfast Program $191,561 - 0
84.367 Improving Teacher Quality State Grants $174,080 - 0
84.027 Special Education_grants to States $110,047 Yes 0
84.425 Education Stabilization Fund $87,595 Yes 1
84.424 Student Support and Academic Enrichment Program $28,169 - 0
93.778 Medical Assistance Program $28,013 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $9,857 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $5,500 - 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0
10.559 Summer Food Service Program for Children $2,438 - 0
10.555 National School Lunch Program $1,675 - 0
84.173 Special Education_preschool Grants $772 Yes 0

Contacts

Name Title Type
MLUKPGAD7296 Angela Gleason Auditee
8106761005 Curtis McBride Auditor
No contacts on file

Notes to SEFA

Title: N/A Accounting Policies: Revenues and expenditures are recognized on the modified-accrual basis of accounting. Under this method, expenditures are recognized when incurred. Revenues are recognized if the expenditures have been incurred and cash was received within 60 days of year-end. Any excess or deficiency of revenue received is recorded as deferred and accrued revenue, respectively, at year-end. De Minimis Rate Used: N Rate Explanation: The District uses the indirect cost rate determined and approved by the Michigan Department of Education. N/A

Finding Details

Finding 2023-002
Program Name: Education Stabilization Fund - American Rescue Plan - Elementary and Secondary School Emergency Relief Fund - CFDA #84.425U. Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency in Internal Control over Compliance. Condition: Textbook and workbook orders were paid in advance and charged to the federal program for periods that extend beyond the award period. Perspective/Context: Of $2,314,999 charged to the program, $248,781 is related to expenditures for fiscal years beyond the grant period. Questioned Cost: None. Per Michigan Department of Education, the District has the ability to amend their award budget before September 30, 2024 to correct the error. Criteria: Grantees should have written policies and procedures to assure only allowable costs are charged to the federal program and all expenditures are within the grant period of availability. Cause: The District lacks oversight over federal programs to identify expenditures that extend multiple years to assure only those in the grant period are charged to the federal program. Effect: The District could be paying for goods or services with federal funds prior to receiving the goods or services. Recommendation: The District should review the current policies and procedures related to federal awards and review all related controls to identify these types of transactions before they are charged to grant programs for proper review, approval, and consideration. Management's Response: Management will work with the grants department to review current policy and procedures related to federal awards. The team will maintain controls to review grants in the planning process to ensure the plans include allowable expenditures that fall within the grant expenditure period.
Finding 2023-002
Program Name: Education Stabilization Fund - American Rescue Plan - Elementary and Secondary School Emergency Relief Fund - CFDA #84.425U. Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency in Internal Control over Compliance. Condition: Textbook and workbook orders were paid in advance and charged to the federal program for periods that extend beyond the award period. Perspective/Context: Of $2,314,999 charged to the program, $248,781 is related to expenditures for fiscal years beyond the grant period. Questioned Cost: None. Per Michigan Department of Education, the District has the ability to amend their award budget before September 30, 2024 to correct the error. Criteria: Grantees should have written policies and procedures to assure only allowable costs are charged to the federal program and all expenditures are within the grant period of availability. Cause: The District lacks oversight over federal programs to identify expenditures that extend multiple years to assure only those in the grant period are charged to the federal program. Effect: The District could be paying for goods or services with federal funds prior to receiving the goods or services. Recommendation: The District should review the current policies and procedures related to federal awards and review all related controls to identify these types of transactions before they are charged to grant programs for proper review, approval, and consideration. Management's Response: Management will work with the grants department to review current policy and procedures related to federal awards. The team will maintain controls to review grants in the planning process to ensure the plans include allowable expenditures that fall within the grant expenditure period.
Finding 2023-002
Program Name: Education Stabilization Fund - American Rescue Plan - Elementary and Secondary School Emergency Relief Fund - CFDA #84.425U. Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency in Internal Control over Compliance. Condition: Textbook and workbook orders were paid in advance and charged to the federal program for periods that extend beyond the award period. Perspective/Context: Of $2,314,999 charged to the program, $248,781 is related to expenditures for fiscal years beyond the grant period. Questioned Cost: None. Per Michigan Department of Education, the District has the ability to amend their award budget before September 30, 2024 to correct the error. Criteria: Grantees should have written policies and procedures to assure only allowable costs are charged to the federal program and all expenditures are within the grant period of availability. Cause: The District lacks oversight over federal programs to identify expenditures that extend multiple years to assure only those in the grant period are charged to the federal program. Effect: The District could be paying for goods or services with federal funds prior to receiving the goods or services. Recommendation: The District should review the current policies and procedures related to federal awards and review all related controls to identify these types of transactions before they are charged to grant programs for proper review, approval, and consideration. Management's Response: Management will work with the grants department to review current policy and procedures related to federal awards. The team will maintain controls to review grants in the planning process to ensure the plans include allowable expenditures that fall within the grant expenditure period.
Finding 2023-002
Program Name: Education Stabilization Fund - American Rescue Plan - Elementary and Secondary School Emergency Relief Fund - CFDA #84.425U. Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency in Internal Control over Compliance. Condition: Textbook and workbook orders were paid in advance and charged to the federal program for periods that extend beyond the award period. Perspective/Context: Of $2,314,999 charged to the program, $248,781 is related to expenditures for fiscal years beyond the grant period. Questioned Cost: None. Per Michigan Department of Education, the District has the ability to amend their award budget before September 30, 2024 to correct the error. Criteria: Grantees should have written policies and procedures to assure only allowable costs are charged to the federal program and all expenditures are within the grant period of availability. Cause: The District lacks oversight over federal programs to identify expenditures that extend multiple years to assure only those in the grant period are charged to the federal program. Effect: The District could be paying for goods or services with federal funds prior to receiving the goods or services. Recommendation: The District should review the current policies and procedures related to federal awards and review all related controls to identify these types of transactions before they are charged to grant programs for proper review, approval, and consideration. Management's Response: Management will work with the grants department to review current policy and procedures related to federal awards. The team will maintain controls to review grants in the planning process to ensure the plans include allowable expenditures that fall within the grant expenditure period.