Finding 178344 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2022-10-31
Audit: 176603
Organization: Farwell Area Schools (MI)

AI Summary

  • Core Issue: Payments charged to the grant were not authorized, leading to non-compliance with federal cost principles.
  • Impacted Requirements: Violations of 2 CFR 200.402 regarding allowable costs for federal awards.
  • Recommended Follow-Up: Review grant agreements and strengthen internal controls to ensure only allowable costs are charged.

Finding Text

2022-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES Program: ALN 84.425 Education Stabilization Fund, ESSER II - Formula Type: Material Weakness in Internal Control / Non-Compliance Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants it was noted that payments were charged to the grant but were not authorized by the grant. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Questioned Cost: $104,101 Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant. View of Responsible Official: Management is in agreement with this recommendation

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 178341 2022-001
    Material Weakness
  • 178342 2022-001
    Material Weakness
  • 178343 2022-001
    Material Weakness
  • 754783 2022-001
    Material Weakness
  • 754784 2022-001
    Material Weakness
  • 754785 2022-001
    Material Weakness
  • 754786 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $636,337
84.027 Special Education_grants to States $323,431
84.367 Improving Teacher Quality State Grants $80,614
84.424 Student Support and Academic Enrichment Program $42,461
10.553 School Breakfast Program $29,713
84.358 Rural Education $18,298
93.778 Medical Assistance Program $16,848
84.425 Education Stabilization Fund $10,500
10.555 National School Lunch Program $6,881
10.559 Summer Food Service Program for Children $6,466
10.649 Pandemic Ebt Administrative Costs $3,063
10.558 Child and Adult Care Food Program $54