FAC Explorer

Audit 4753

FY End
2023-06-30
Total Expended
$1.23M
Findings
4
Programs
11
Organization: Boyne City Public Schools (MI)
Year: 2023 Accepted: 2023-11-30
Auditor: Uhy LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2748 2023-002 Significant Deficiency - AB
2749 2023-002 Significant Deficiency - AB
579190 2023-002 Significant Deficiency - AB
579191 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $348,043 - 0
84.425 Education Stabilization Fund $190,144 Yes 1
84.010 Title I Grants to Local Educational Agencies $106,280 - 0
10.553 School Breakfast Program $82,879 - 0
84.367 Improving Teacher Quality State Grants $26,309 - 0
84.060 Indian Education_grants to Local Educational Agencies $14,115 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $10,000 - 0
93.778 Medical Assistance Program $977 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $90 - 0

Contacts

Name Title Type
FHG5QKCXVPB7 Irene Byrne Auditee
2314398192 Melissa Wells Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of Boyne City Public Schools under programs of the federal government for the year ended June 30, 2023. 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 Boyne City Public Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Boyne City Public Schools.
Title: Summary of Significant Accounting Policies Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable 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. Boyne City Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Reconciliation of Revenues with Expenditures for Federal Financial Assistance Programs Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable See the Notes to the SEFA table instead
Title: Reconciliation of Grant Auditor Report with Schedule of Expenditures of Federal Awards Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable See the Notes to the SEFA table instead

Finding Details

Finding 2023-002
Documentation of Allocation of Employee Compensation to Federal Awards Type: Significant Deficiency in Internal Control over Major Program, Immaterial Noncompliance Criteria: Under the cost principles contained in Title 2 US Code of Federal Regulations Part 200.430, allowable direct costs chargeable to federal awards include compensation of employees for the time devoted and identified specific to the performance of these awards. When an employee spends time among specific activities or cost objectives, the School District should maintain support for the distribution of time. Budget estimates (i.e. estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed. (B) Significant changes in the corresponding work activity (as defined by the nonfederal entity’s written policies) are identified and entered into the records in a timely manner. Short-term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term. (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim changes made to a federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition and Context: Per School District policy, all federal employees are required to have personnel activity reports (PARs) or semi-annual certifications. It was noted during payroll tested that these items were not maintained for all federal employees. There were no questioned costs and all payroll expenses appeared to be allocated correctly. Cause: Incorrect implementation of District policy caused the condition to exist. Effect: As a result of this condition, it is possible the District does not fully comply with Department of Education requirements. Recommendation: We recommend the District closely monitor its personnel documentation, specifically related to PARs and semi-annual certifications to ensure that compliance is sufficiently documented. View of Responsible Officials: The CFO is going to ensure the District’s policy of maintaining PARs and semi-annual certifications is followed in subsequent years.
Finding 2023-002
Documentation of Allocation of Employee Compensation to Federal Awards Type: Significant Deficiency in Internal Control over Major Program, Immaterial Noncompliance Criteria: Under the cost principles contained in Title 2 US Code of Federal Regulations Part 200.430, allowable direct costs chargeable to federal awards include compensation of employees for the time devoted and identified specific to the performance of these awards. When an employee spends time among specific activities or cost objectives, the School District should maintain support for the distribution of time. Budget estimates (i.e. estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed. (B) Significant changes in the corresponding work activity (as defined by the nonfederal entity’s written policies) are identified and entered into the records in a timely manner. Short-term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term. (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim changes made to a federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition and Context: Per School District policy, all federal employees are required to have personnel activity reports (PARs) or semi-annual certifications. It was noted during payroll tested that these items were not maintained for all federal employees. There were no questioned costs and all payroll expenses appeared to be allocated correctly. Cause: Incorrect implementation of District policy caused the condition to exist. Effect: As a result of this condition, it is possible the District does not fully comply with Department of Education requirements. Recommendation: We recommend the District closely monitor its personnel documentation, specifically related to PARs and semi-annual certifications to ensure that compliance is sufficiently documented. View of Responsible Officials: The CFO is going to ensure the District’s policy of maintaining PARs and semi-annual certifications is followed in subsequent years.
Finding 2023-002
Documentation of Allocation of Employee Compensation to Federal Awards Type: Significant Deficiency in Internal Control over Major Program, Immaterial Noncompliance Criteria: Under the cost principles contained in Title 2 US Code of Federal Regulations Part 200.430, allowable direct costs chargeable to federal awards include compensation of employees for the time devoted and identified specific to the performance of these awards. When an employee spends time among specific activities or cost objectives, the School District should maintain support for the distribution of time. Budget estimates (i.e. estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed. (B) Significant changes in the corresponding work activity (as defined by the nonfederal entity’s written policies) are identified and entered into the records in a timely manner. Short-term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term. (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim changes made to a federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition and Context: Per School District policy, all federal employees are required to have personnel activity reports (PARs) or semi-annual certifications. It was noted during payroll tested that these items were not maintained for all federal employees. There were no questioned costs and all payroll expenses appeared to be allocated correctly. Cause: Incorrect implementation of District policy caused the condition to exist. Effect: As a result of this condition, it is possible the District does not fully comply with Department of Education requirements. Recommendation: We recommend the District closely monitor its personnel documentation, specifically related to PARs and semi-annual certifications to ensure that compliance is sufficiently documented. View of Responsible Officials: The CFO is going to ensure the District’s policy of maintaining PARs and semi-annual certifications is followed in subsequent years.
Finding 2023-002
Documentation of Allocation of Employee Compensation to Federal Awards Type: Significant Deficiency in Internal Control over Major Program, Immaterial Noncompliance Criteria: Under the cost principles contained in Title 2 US Code of Federal Regulations Part 200.430, allowable direct costs chargeable to federal awards include compensation of employees for the time devoted and identified specific to the performance of these awards. When an employee spends time among specific activities or cost objectives, the School District should maintain support for the distribution of time. Budget estimates (i.e. estimates determined before the services are performed) alone do not qualify as support for charges to federal awards, but may be used for interim accounting, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed. (B) Significant changes in the corresponding work activity (as defined by the nonfederal entity’s written policies) are identified and entered into the records in a timely manner. Short-term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term. (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim changes made to a federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition and Context: Per School District policy, all federal employees are required to have personnel activity reports (PARs) or semi-annual certifications. It was noted during payroll tested that these items were not maintained for all federal employees. There were no questioned costs and all payroll expenses appeared to be allocated correctly. Cause: Incorrect implementation of District policy caused the condition to exist. Effect: As a result of this condition, it is possible the District does not fully comply with Department of Education requirements. Recommendation: We recommend the District closely monitor its personnel documentation, specifically related to PARs and semi-annual certifications to ensure that compliance is sufficiently documented. View of Responsible Officials: The CFO is going to ensure the District’s policy of maintaining PARs and semi-annual certifications is followed in subsequent years.