Audit 5290

FY End
2023-06-30
Total Expended
$1.64M
Findings
10
Programs
14
Organization: St. Ignace Area School District (MI)
Year: 2023 Accepted: 2023-12-05

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
3382 2023-004 Significant Deficiency - F
3383 2023-004 Significant Deficiency - F
3384 2023-004 Significant Deficiency - F
3385 2023-004 Significant Deficiency - F
3386 2023-003 Material Weakness - N
579824 2023-004 Significant Deficiency - F
579825 2023-004 Significant Deficiency - F
579826 2023-004 Significant Deficiency - F
579827 2023-004 Significant Deficiency - F
579828 2023-003 Material Weakness - N

Contacts

Name Title Type
H7D9NWKFMAJ8 Kari Visnaw Auditee
9066438145 Kim Lindsay, Cpa, Cgma Auditor
No contacts on file

Notes to SEFA

Title: RECONCILIATION TO THE BASIC FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of St. Ignace Area Schools (the "District") under programs of the federal government for the year ended June 30, 2023. The information in the 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 District, it is not intended to and does not present the financial position, or changes in net position of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the District's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the financial reports. The amounts reported on the Grant Auditor Report reconcile with this Schedule. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the District has not elected to use the 10% de minimis cost rate as permitted by §200.414 of the Uniform Guidance. See the Notes to the SEFA for chart/table

Finding Details

The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. The District did not include the federal wage rate requirements in their contracts and did not obtain the required certified payrolls for its contractors subject to the federal rate requirements. The District did not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. As a result of this condition, District did not follow federal requirements to include the prevailing wage rate provision in its contract. The total charges that were not supported by appropriate prevailing wage documentation amount to $134,000. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires entities that purchase equipment and real property to maintain records which indicate which of those assets were purchased with federal funds, and to conduct a physical inventory of equipment purchased with federal funds at least once every two years. The District has not conducted a physical inventory of equipment in accordance with the requirements. This condition was caused by a lack of complete understanding of the requirements associated with equipment and real property management. The District did not comply with the requirements of the Uniform Guidance, which could also result in further noncompliance when equipment and real property are disposed in future years as a result of not having inventory taking. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. We recommend that the District take physical inventory counts of all equipment and real property purchased with federal funds at least once every two years.
The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors. The District did not include the federal wage rate requirements in their contracts and did not obtain the required certified payrolls for its contractors subject to the federal rate requirements. The District did not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. As a result of this condition, District did not follow federal requirements to include the prevailing wage rate provision in its contract. The total charges that were not supported by appropriate prevailing wage documentation amount to $134,000. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained.