FAC Explorer

Finding 915 (2023-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2023-10-30
Audit: 1694
Organization: Breckenridge Community Schools (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: Payments for 6 laptops were charged to the grant without proper authorization.
  • Impacted Requirements: This violates the cost principles outlined in 2 CFR 200.402 regarding allowable costs.
  • Recommended Follow-Up: The District should review grant agreements and strengthen internal controls to ensure only allowable costs are charged.

Finding Text

2023-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES 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 6 laptops 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

The Business Manager will review all grant agreements to gain a thorough understanding of allowable costs and then establish and modify or amend grant budgets appropriately to assure that only allowable costs are charged to federal grants. The Superintendent will review all federal budget amendments. We will put this into effect immediately going forward in all future grant agreements.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 577357 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $349,068
84.010 Title I Grants to Local Educational Agencies $192,126
32.009 Emergency Connectivity Fund Program $80,011
10.553 School Breakfast Program $52,452
84.367 Improving Teacher Quality State Grants $31,138
84.358 Rural Education $16,638
84.424 Student Support and Academic Enrichment Program $13,206
93.778 Medical Assistance Program $2,678
10.185 Local Food for Schools Cooperative Agreement $2,626
10.555 National School Lunch Program $1,094
10.649 Pandemic Ebt Administrative Costs $628