FAC Explorer

Finding 1164835 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2025-12-15
Audit: 374660
Organization: Chippewa Hills School District (MI)
Auditor: ROSLUND PRESTAGE & COMPANY PC

AI Summary

  • Core Issue: The District improperly charged costs for a loading dock to the food service fund without prior approval from the Michigan Department of Education.
  • Impacted Requirements: This violates 2 CFR 200.439(b)(1), which mandates prior written approval for capital expenditures.
  • Recommended Follow-Up: The District should update procedures to ensure all equipment purchases are either on the approved list or have received necessary approvals before buying.

Finding Text

2025-002 Type: Significant Deficiency in Internal Control / Noncompliance Program: Child Nutrition Cluster Condition: The District charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Criteria: As detailed in 2 CFR 200.439(b)(1), “Capital expenditures for general purpose equipment, buildings, and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity.” Cause: Management oversight. Effect: Amounts charged to the food service fund may be considered unallowed. Context: The District charged the cost of the loading dock to the food service fund. Questioned Costs: Amount charged to the food service fund is below $25,000. Recommendation: We recommend that the District review/update procedures to ensure that equipment purchased from the food service fund is either on the approved equipment list, or approval from Michigan Department of Education has been obtained prior to purchase. Management’s Resp: We are in agreement with this finding.

Corrective Action Plan

Federal Award - Finding Number: 2025-002 Responsible Person: Director of Finance Condition: The district charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Corrective Action Plan: All food service fund asset purchases made going forward will be compared to the approved equipment list or approved by the Michigan Department of Education prior to purchase. Anticipated Correction Date: Immediate and Ongoing

Categories

School Nutrition Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency Equipment & Real Property Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1164827 2025-002
    Material Weakness Repeat
  • 1164828 2025-002
    Material Weakness Repeat
  • 1164829 2025-002
    Material Weakness Repeat
  • 1164830 2025-002
    Material Weakness Repeat
  • 1164831 2025-002
    Material Weakness Repeat
  • 1164832 2025-002
    Material Weakness Repeat
  • 1164833 2025-002
    Material Weakness Repeat
  • 1164834 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $551,475
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $330,364
10.553 SCHOOL BREAKFAST PROGRAM $241,068
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $73,692
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $44,443
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $34,140
10.555 NATIONAL SCHOOL LUNCH PROGRAM $22,525
84.425 EDUCATION STABILIZATION FUND $21,443
93.778 MEDICAL ASSISTANCE PROGRAM $21,160
10.558 CHILD AND ADULT CARE FOOD PROGRAM $5,682