Audit 41538

FY End
2022-06-30
Total Expended
$4.43M
Findings
2
Programs
11
Year: 2022 Accepted: 2022-11-28
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
47091 2022-001 Material Weakness - P
623533 2022-001 Material Weakness - P

Programs

Contacts

Name Title Type
FE1AVLHLFS67 Lonnie Draper Auditee
7342859666 Jamie Rivette Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Riverview Community School District (the School 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 School District, it is not intended to and does not present the financial position, changes in financial positions of the School District.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal revenues per the financial statements are in agreement with the schedule of expenditures of federal awards.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No amounts were provided to subrecipients.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal amounts reported on the grant auditor report are in agreement with the schedule of expenditures of federal awards except as follows: Program or Cluster Title: Title I, Part A - Improving Basic Programs, Grant/Project Number: 221530, Report on Grant Auditor Report: $179,287, Reported on Schedule of Expenditures of Federal Awards: $98,824, Variance $80,463, Reason for Variance: Timing of deposit. Program or Cluster Title: Title II, Part A - Supporting Effective Instruction State Grants, Grant/Project Number: 220520, Report on Grant Auditor Report: $26,830, Reported on Schedule of Expenditures of Federal Awards: $13,107, Variance $13,723, Reason for Variance: Timing of deposit. Program or Cluster Title: Title IV, Part A - Student Support and Academic Enrichment, Grant/Project Number: 220750, Report on Grant Auditor Report: $14,640, Reported on Schedule of Expenditures of Federal Awards: $4,399, Variance $10,241, Reason for Variance: Timing of deposit. 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.

Finding Details

Finding 2022-001: Wage Rate Requirements Program Name: Education Stabilization Fund ? Assistance Listing 84.425D Awarding Agency: U.S. Department of Education Finding Type: Material Weakness on Internal Controls over Compliance Questioned Cost Amount: N/A Context / Criteria: All construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act as supplemented by Department of Labor regulations. Condition: The School District did not have controls in place to ensure construction contracts in excess of $2,000 included provisions for compliance with the Davis-Bacon Act. Cause / Effect: The School District entered into a contract with a construction manager for a project not funded by federal funds. Subsequent to the agreement being placed into effect, a change order was added to include a HVAC project that would be funded by federal funds. The original contract and the change order did not include a provision for compliance with the Davis-Bacon Act. As a result, the School District entered into a construction contract that was not in compliance with 2 CFR Part 176 Subpart C. Recommendation: We recommend management implement procedures to ensure construction contracts entered into that utilize federal funding are reviewed for compliance with federal requirements. Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying Corrective Action Plan.
Finding 2022-001: Wage Rate Requirements Program Name: Education Stabilization Fund ? Assistance Listing 84.425D Awarding Agency: U.S. Department of Education Finding Type: Material Weakness on Internal Controls over Compliance Questioned Cost Amount: N/A Context / Criteria: All construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act as supplemented by Department of Labor regulations. Condition: The School District did not have controls in place to ensure construction contracts in excess of $2,000 included provisions for compliance with the Davis-Bacon Act. Cause / Effect: The School District entered into a contract with a construction manager for a project not funded by federal funds. Subsequent to the agreement being placed into effect, a change order was added to include a HVAC project that would be funded by federal funds. The original contract and the change order did not include a provision for compliance with the Davis-Bacon Act. As a result, the School District entered into a construction contract that was not in compliance with 2 CFR Part 176 Subpart C. Recommendation: We recommend management implement procedures to ensure construction contracts entered into that utilize federal funding are reviewed for compliance with federal requirements. Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying Corrective Action Plan.