FAC Explorer

Finding 504259 (2024-001)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2024-10-31
Audit: 326782
Organization: Breckenridge Community Schools (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: Payments for 8 projectors were charged to the grant without proper authorization, indicating a misunderstanding of allowable costs.
  • Impacted Requirements: This finding violates 2 CFR 200.402, which outlines the criteria for allowable costs under federal awards.
  • Recommended Follow-Up: The District should review grant agreements to clarify allowable costs and enhance internal controls to prevent future non-compliance.

Finding Text

2024-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES (repeat comment) Program: ALN 84.425 Education Stabilization Fund, COVID-19 - ESSER III - Formula Type: Significant deficiency in Internal Control / Immaterial 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 for 8 projectors 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. 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

Corrective Action Plan

Breckenridge Community Schools Corrective Action Plan for audit finding number (2024-001) Responsible party: Amber Hinterman — LEA Business Manager and Wade Slavik — Superintendent Expected completion date: July 2024, immediately going forward Condition: During testing of amounts charged to the grants, it was noted that payments for 8 projectors were charged to the grant but were not authorized by the grant. To Whom it May Concern, The Business Manager will review detail budget lines in grant agreements and compare those detail budget lines against documentation that supports general ledger entries to ensure costs charged to federal grants are stated in grant agreements. Thank you, Amber Hinterman LEA Business Manager

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1080701 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.04M
84.010 Title I Grants to Local Educational Agencies $183,285
10.553 School Breakfast Program $116,940
10.555 National School Lunch Program $28,794
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $23,624
84.358 Rural Education $18,791
84.424 Student Support and Academic Enrichment Program $9,373
10.579 Child Nutrition Discretionary Grants Limited Availability $7,248
10.185 Local Food for Schools Cooperative Agreement Program $2,616
93.778 Medical Assistance Program $1,514