FAC Explorer

Audit 9835

FY End
2023-06-30
Total Expended
$1.60M
Findings
4
Programs
15
Organization: Tri County Area Schools (MI)
Year: 2023 Accepted: 2024-01-05
Auditor: Miller Brussell Ebben and Glaeske LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7534 2023-002 Significant Deficiency Yes P
7535 2023-003 Significant Deficiency Yes P
583976 2023-002 Significant Deficiency Yes P
583977 2023-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $751,766 Yes 2
10.555 National School Lunch Program $213,233 - 0
84.010 Title I Grants to Local Educational Agencies $169,721 - 0
84.027 Special Education_grants to States $150,781 - 0
93.778 Medical Assistance Program $102,852 - 0
10.553 School Breakfast Program $68,461 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $24,589 - 0
84.358 Rural Education $22,267 - 0
84.367 Improving Teacher Quality State Grants $20,515 - 0
84.424 Student Support and Academic Enrichment Program $13,125 - 0
10.582 Fresh Fruit and Vegetable Program $10,548 - 0
10.559 Summer Food Service Program for Children $9,102 - 0
84.048 Career and Technical Education -- Basic Grants to States $6,001 - 0
84.173 Special Education_preschool Grants $4,946 - 0
84.365 English Language Acquisition State Grants $1,000 - 0

Contacts

Name Title Type
EJDNFUWSJ6K8 Jamie Delikowski Auditee
7153356366 Craig Corning Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Tri-County Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Tri-County Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Note 2 Special Education and School Age Parents Program Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Tri-County Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. 2022-2023 eligible costs under the State Special Education Program are $685,664.
Title: Note 3 De Minimis Cost Rate Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Tri-County Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. The District has elected not to use the 10% de minimis cost rate.

Finding Details

Finding 2023-002
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities of a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education's and management's knowledge of matters relating to the District's operations.
Finding 2023-003
Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single audit report for the District. Criteria: Having staff with expertise in state reporting to prepare the District's single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District's single audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including single audit reports, the District's system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District's single audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District's single audit report.
Finding 2023-002
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities of a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education's and management's knowledge of matters relating to the District's operations.
Finding 2023-003
Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single audit report for the District. Criteria: Having staff with expertise in state reporting to prepare the District's single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District's single audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including single audit reports, the District's system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District's single audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District's single audit report.