Finding 1166652 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-12-24
Audit: 377623

AI Summary

  • Core Issue: The District lacks formal written policies for payments, cost allowability, and compensation as required by the Uniform Grant Guidance.
  • Impacted Requirements: Compliance with federal guidelines for grants from the U.S. Department of Education, specifically regarding written policies for managing federal funds.
  • Recommended Follow-Up: The District should finalize and implement the necessary written policies by the end of the next fiscal year to ensure compliance.

Finding Text

Written Policies Required by the Uniform Grant Guidance (Repeat) Finding Type. Immaterial noncompliance Federal program(s). U.S. Department of Education - Title I, Part A - Improving Basic Programs (ALN 84.010); passed through the Michigan Department of Education; All project numbers. U.S. Department of Education -Special Education Cluster (ALN 84.027 and 84.173); passed through the Wayne County Regional Educational Service Agency; All project numbers. Criteria. The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to: 1) Payments (draws of federal funds and how to minimize the time lapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302(6)); 2) Allowability of costs charged to federal programs (§200.302(7)); and 3) Compensation (personnel and benefits policy) (§200.430 and §200.431). Condition. Although the District has processes in place to cover these areas, there are no formal written policies covering payments, allowability of costs, and compensation. Cause. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect. As a result of this condition, the District did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We are aware that the District is evaluating options using internal and external resources to take corrective action. We recommend that the District proceed with its selected option as soon as practical, but no later than the end of the next fiscal year. View of Responsible Officials. As noted, the District has processes in place that cover all grant guidelines related to federal funds. However, upon bringing it to our attention that these policies should be in writing, we are making every endeavor to comply. The District is currently working on drafting policies that will meet the criteria set out in the Uniform Guidance.

Corrective Action Plan

Auditor Description of Condition and Effect: Although the District has processes in place to cover these areas, there are no formal written policies covering payments, allowability of costs, and compensation. As a result of this condition, the District did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation: We are aware that the District is evaluating options using internal and external resources to take corrective action. We recommend that the District proceed with its selected option as soon as practical, but no later than the end of the next fiscal year. Corrective Action: As noted, the District has processes in place that cover all grant guidelines related to federal funds. However, upon bringing it to our attention that these policies should be in writing, we are making every endeavor to comply. The District is currently working on drafting policies that will meet the criteria set out in the Uniform Guidance. Responsible Person: Maria Gistinger, Interim Chief Financial Officer Anticipated Completion Date: June 30, 2026

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1166644 2025-001
    Material Weakness Repeat
  • 1166645 2025-001
    Material Weakness Repeat
  • 1166646 2025-002
    Material Weakness Repeat
  • 1166647 2025-002
    Material Weakness Repeat
  • 1166648 2025-002
    Material Weakness Repeat
  • 1166649 2025-002
    Material Weakness Repeat
  • 1166650 2025-002
    Material Weakness Repeat
  • 1166651 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $870,915
84.425 EDUCATION STABILIZATION FUND $623,585
10.553 SCHOOL BREAKFAST PROGRAM $400,722
93.778 MEDICAL ASSISTANCE PROGRAM $334,519
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $112,026
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $60,845
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $42,250
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $40,243
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $36,283
84.027 SPECIAL EDUCATION GRANTS TO STATES $8,914
10.558 CHILD AND ADULT CARE FOOD PROGRAM $3,980
10.555 NATIONAL SCHOOL LUNCH PROGRAM $3,254