Finding 579951 (2023-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2023-12-06
Audit: 5522
Organization: Marysville Public Schools (MI)
Auditor: Uhy LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over federal awards, affecting the accuracy of the Schedule of Expenditures of Federal Awards (SEFA).
  • Impacted Requirements: The SEFA must accurately reflect all federal awards, including indirect costs and receivables, as per SAS 115 and Uniform Guidance.
  • Recommended Follow-Up: Implement a reconciliation template for federal grant activity to ensure timely and accurate reporting in the general ledger.

Finding Text

Material Adjusting Entries and Potential Impact on SEFA Accuracy Program Federal awards internal control deficiency that could impact the accuracy and completeness of federal awards reported on the Schedule of Expenditures of Federal Awards and have an impact on determination of major programs. Type: Material Weakness in Internal Control over federal awards. Criteria: The Schedule of Expenditures of Federal Awards is considered a required element of external financial reporting under SAS 115 and supplementary information required by Uniform Guidance. It is used by grantors and pass-through grantors to monitor federal awards and by auditee auditors to select major programs. Condition: The District’s listing of grants to prepare the SEFA was not accurately reported due to exclusion of indirect costs and unrecorded receivables and deferrals for certain federal awards. Context: The federal grants identified on the District’s listing of grants was understated by $1,078,725. Cause: Due in part to turnover in the Director of Business and Finance position and lack of appropriate and timely monthly close process, the reconciliations were not completed in a timely manner. Effect: Material misstatement of the SEFA is more than probable. Recommendation: The District should create a template to reconcile federal grant activity to the general ledger revenue, expenditure and deferral balances. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3506 2023-004
    Material Weakness
  • 3507 2023-004
    Material Weakness
  • 3508 2023-004
    Material Weakness
  • 3509 2023-004
    Material Weakness
  • 579948 2023-004
    Material Weakness
  • 579949 2023-004
    Material Weakness
  • 579950 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund $1.34M
84.027 Special Education_grants to States $491,455
84.010 Title I Grants to Local Educational Agencies $234,512
10.555 National School Lunch Program $79,751
10.553 School Breakfast Program $67,603
84.027 Covid-19 Special Education_grants to States $32,000
84.173 Special Education_preschool Grants $20,399
93.778 Medical Assistance Program $20,123
10.558 Child and Adult Care Food Program $13,999
10.579 Child Nutrition Discretionary Grants Limited Availability $7,538
84.424 Student Support and Academic Enrichment Program $6,430
10.649 Pandemic Ebt Administrative Costs $3,135
84.367A School Leader Reservation Grants $1,924