Brandywine Community Schools

Finding Type Material Weakness in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance) Criteria The District is required to provide an accurate listing of federal grants to prepare the District’s Schedule Expenditures of Federal Awards. Condition During the audit, the District provided a listing of federal grants that was incorrect to the District’s external auditors. By doing this the District’s federal grants listing was incomplete and incorrect causing the auditor’s preliminary major program determination to be incorrect. If this was not discovered by the District’s external auditors, the incorrect major program would have been tested creating an audit failure. Questioned Costs None Cause The District had multiple mispostings in the federal award accounts which affected the District’s preliminary Schedule Expenditures of Federal Awards. Effect Without the correct federal expenditures listing, there is a risk that a major program would be missed. Recommendation We recommend that the District review the federal revenue accounts compared to the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents while preparing the District’s Schedule Expenditures of Federal Awards. The District should also compare the District’s federal expenditures in the District’s general ledger. Any reconciling items between the revenue and expenses should be reconciled and accounted for. District’s Response The District plans on reviewing federal revenue accounts with the District’s Grant Auditor Report, Berrien RESA report, and other federal grant documents and reconcile to federal grant expenditures in the District’s general ledger when preparing the District’s Schedule of Federal Awards.

Finding Type Significant Deficiency in Internal Control Over Compliance and Noncompliance with Laws and Regulations and Other Matters (Uniform Guidance). Criteria The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition The District incurred the expenditures but was unable to bridge the accounting records supporting the transactio ns requested by the auditor in a timely manner. Questioned Costs None Context The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response The District is improving their current policy for support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.

Finding: 2023-003 – Federal Assistance Listing Number, Federal Agency, and Program Name – 84.425C, 84.425U & 84.425D, Education Stabilization Fund, U.S. Department of Education Finding Type – Significant Deficiency (Uniform Guidance). Criteria – The District is required to spend on allowable activities and related costs for which expenditures have been incurred prior to making the request for grant monies. Condition – The District incurred the expenditures but was unable to bridge the accounting records supporting the transactions requested upon by the auditor in a timely manner. Questioned Costs – None Context – The District could not provide a general ledger detail or schedule identifying the expenditures that were allocated towards the District’s federal grant draws when requested. The District had the support in multiple places and it took some time to get the support needed for the request. Cause – The District could not provide grant detail in a timely manner when requested by the District’s auditors. Effect – Without the proper documentation, there is a risk expenditures were not properly drawn for that grant. Recommendation – For each draw, the Business Office personnel should attach expenditure detail to support the draw. By doing this the District would have support readily available when it is requested. It should be noted, that the detail that eventually was provided to the District’s auditors was in line with the grant activity related to the grant and the draw. District’s Response – The District has already implemented a policy that the support for any federal draw is immediately attached to the federal request. This will make the information readily available when requested.

Finding: 2020-001 ? CFDA Number, Federal Agency, and Program Name ? 10.553, 10.555, 10.559 Child Nutrition Cluster, U.S. Department of Agriculture Finding Type ? Material noncompliance with laws and regulations (Government Auditing Standards) and material weakness (Uniform Guidance). Criteria ? The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses. If an excess fund balance should occur, the School Food Authority (?SFA?) will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. As a result, this allows the SFA to use those excess funds to further improve the school meals program operations. The school food service account is a non-profit account which means that the excess funds cannot be used to profit the general fund. It must be used for a specific purpose in the School Meals Program. Condition ? The District?s fund equity in the Food Service Fund exceeded the allowable three-months of expenditures threshold. Questioned Costs ? None Context ? The District?s fund equity of $324,326 at fiscal year-end exceeded the allowable three-months of expenditures threshold by $79,836. Cause and Effect ? During the 2020 fiscal year, the District?s revenues exceeded expenditures, such that, when added to the opening fund balance, the final fund balance caused the fund to be in non-compliance. Without proper monitoring, the District could see and adverse effect of funding from federal sources. Recommendation ? The District has already reviewed the circumstances surrounding this occurrence and is cognizant of the corrective action. Views of the Responsible Officials and Planned Corrective Actions ? The District will use up fund balance with the purchase of a new equipment. We will keep an eye on the fund balance throughout the 2020-21 school year to ensure the fund balance does not exceed the state limits.

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