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Carrollton Public Schools Carrollton, Michigan Single Audit Report June 30, 2010


CONTENTS

Page Single Audit Report Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

1

Independent Auditors’ Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133

3

Schedule of Expenditures of Federal Awards

5

Notes to the Schedule of Expenditures of Federal Awards

8

Schedule of Findings and Questioned Costs

9

Summary Schedule of Prior Audit Findings

11


Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

Members of the Board of Education Carrollton Public Schools Saginaw, Michigan We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Carrollton Public Schools as of and for the year ended June 30, 2010, which collectively comprise Carrollton Public School’s basic financial statements and have issued our report thereon dated September 8, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered Carrollton Public School’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Carrollton Public School’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Carrollton Public School’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether Carrollton Public School’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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This report is intended solely for the information and use of management, Board of Education, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Saginaw, Michigan September 8, 2010

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Independent Auditors’ Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 Members of the Board of Education Carrollton Public Schools Saginaw, Michigan Compliance We have audited Carrollton Public School’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Carrollton Public Schools major federal programs for the year ended June 30, 2010. Carrollton Public School’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Carrollton Public School’s management. Our responsibility is to express an opinion on Carrollton Public School’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Carrollton Public School’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Carrollton Public School’s compliance with those requirements. In our opinion, Carrollton Public Schools complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2010. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying schedule of findings and questioned costs as item 2010-1. Internal Control Over Compliance Management of Carrollton Public Schools is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Carrollton Public School’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Carrollton Public School’s internal control over compliance. 3


A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditure of Federal Awards We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Carrollton Public Schools as of and for the year ended June 30, 2010, and have issued our report thereon dated September 8, 2010. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise Carrollton Public School's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Carrollton Public School’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit Carrollton Public School’s response and, accordingly, we express no opinion on the response. This report is intended solely for the information and use of management, Board of Education, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Saginaw, Michigan September 8, 2010

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Carrollton Public Schools Schedule of Expenditures of Federal Awards Year Ended June 30, 2010

Federal Grantor Pass Through Grantor Program Title Grant Number U.S. Department of Agriculture Child Nutrition Cluster Passed through Michigan Department of Education Non-cash assistance (commodities) Entitlement Bonus

5

Cash assistance 091970 National School Lunch - Breakfast 101970 National School Lunch - Breakfast 091950 NSL Section 4 Lunches 101950 NSL Section 4 Lunches 091960 NSL Section 11 - Free and Reduced 101960 NSL Section 11 - Free and Reduced 091980 Snacks 101980 Snacks 091940 National School Lunch Special Milk 101940 National School Lunch Special Milk

Federal CFDA Number

10.555

10.553 10.555

10.556

Approved Grant Amount

$

31,173 857

157,637 176,914 46,946 48,648 327,616 349,373 7,205 5,530 513 200

10.558

3,725 2,365 1,446 259

Total U.S. Department of Agriculture U.S. Department of Education Passed through Michigan Department of Education 091120 950077Federal Adult Ed English 101120 105967Federal Adult Ed English 091130 910967Federal Adult Ed English 101130 101967Federal Adult Ed English

$

-

2,661 267 2,122 -

(Memo Only) Prior Year Expenditures

$

-

Current Year Receipts

$

139,396 41,107 287,310 6,802 506 -

84.002A

14,000 19,000 42,500 55,757

31,173 857

Current Year Expenditures

$

31,173 857

Accrued (Deferred) Revenue June 30, 2010

Adjustments

$

-

$

-

20,902 176,914 6,106 48,648 42,428 349,373 403 5,530 7 200

18,241 176,914 5,839 48,648 40,306 349,373 403 5,530 7 200

-

-

682,541

677,491

-

-

2,493 2,365 196 259

1,434 2,365 120 259

-

-

1,135

5,313

4,178

-

-

6,185

687,854

681,669

-

-

251 16,659 4,219 50,544

18,284 55,757

-

1,625 5,213

71,673

74,041

-

6,838

5,050

Total Child Nutrition Cluster Passed through Michigan Department of Education 091920 Child Care Food Program 101920 Child Care Food Program 092010 Child Care Food Program 102010 Child Care Food Program

Accrued (Deferred) Revenue July 1, 2009

1,059 76 -

251 4,219 -

2,291 1,326 -

14,000 36,743 -

4,470

See Accompanying Notes to the Schedule of Expenditures of Federal Awards


Carrollton Public Schools Schedule of Expenditures of Federal Awards Year Ended June 30, 2010

Federal Grantor Pass Through Grantor Program Title Grant Number Passed through Michigan Department of Education Title I, Part A Cluster 091530 0809 Title I 101530 0910 Title I 101535 0910 ARRA Title I, Part A

Federal CFDA Number

84.010 84.389

Accrued (Deferred) Revenue July 1, 2009

Approved Grant Amount

$

327,664 427,495 199,965

$

48,050 -

(Memo Only) Prior Year Expenditures

$

245,739 -

Current Year Receipts

$

48,050 Passed through the Saginaw Intermediate School District Special Education Cluster 090450-0809 IDEA flowthrough - Post Secondary 100450-0910 IDEA flowthrough - Post Secondary 090450-0809 IDEA flowthrough - Regular 100450-0910 IDEA flowthrough - Regular 090455 0809 ARRA - IDEA Flow Through 100455 0910 ARRA - IDEA Flow Through

84.027

84.391A

508,555 613,053 319,107 325,529 100,327 367,408

508,555 319,107 100,327 -

305,707

Total Special Education Cluster 65

Passed through the Saginaw Intermediate School District 092860 0809 Drug Free 102860 0910 Drug Free

203,179 2,201 100,327 -

84.186

1,881 2,667

1,530 -

1,530 -

1,530 Passed through the Michigan Department of Education 092320 0809 Homeless Students' Assistance Grants 102320 0910 Homeless Students' Assistance Grants

84.196A

49,647 34,808

2,752 -

49,647 -

2,752 Passed through Delta College Technical Prep Passed through Michigan Department of Education 092110 E08040 21st CCLC 0102110 E08040 21st CCLC

84.243A

2,766

84.287C

138,467 138,467

-

43,425 -

115,738 -

43,425 Passed through Michigan Department of Education 094290-0809 Technology Literacy Challenge Grant 104290-0910 Technology Literacy Challenge Grant

84.318

4,295 2,784

452 -

850 -

452 See Accompanying Notes to the Schedule of Expenditures of Federal Awards

56,050 309,745 136,142

Current Year Expenditures

$

8,000 398,294 141,078

Accrued (Deferred) Revenue June 30, 2010

Adjustments

$

-

$

88,549 4,936

501,937

547,372

-

93,485

203,179 347,974 2,201 256,765 100,327 133,297

567,966 325,529 145,685

-

219,992 68,764 12,388

1,043,743

1,039,180

-

301,144

1,530 -

2,667

-

2,667

1,530

2,667

-

2,667

2,752 32,643

28,301

-

(4,342)

35,395

28,301

-

(4,342)

2,766

2,763

-

(3)

47,996 85,856

4,571 108,859

-

23,003

133,852

113,430

-

23,003

452 1,080

1,080

-

-

1,532

1,080

-

-


Carrollton Public Schools Schedule of Expenditures of Federal Awards Year Ended June 30, 2010

Federal Grantor Pass Through Grantor Program Title Grant Number Passed through Michigan Department of Education 090520-0809 Title II Part A 100520-0910 Title II Part A

Federal CFDA Number

84.367

Accrued (Deferred) Revenue July 1, 2009

Approved Grant Amount

$

80,519 87,936

$

19,456 -

(Memo Only) Prior Year Expenditures

$

75,749 -

Current Year Receipts

$

19,456 Passed through Michigan Department of Education 0102325 0910 Homeless Child & Youth Grants ARRA Passed through Michigan Department of Education 092525 0809 ARRA - State Fiscal Stabilization Fund 102525 0910 ARRA - State Fiscal Stabilization Fund

84.387A

36,233

84.394

655,415 494,237

Total U.S. Department of Education 7

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Department of Health and Human Services Passed through the Saginaw Intermediate School District Medicaid Outreach TOTAL

93.778

4,578

16,456 70,158

Current Year Expenditures

$

86,903

Accrued (Deferred) Revenue June 30, 2010

Adjustments

$

3,000 -

$

16,745

86,614

86,903

3,000

16,745

20,729

20,729

-

-

655,415 494,237

494,237

-

-

655,415

1,149,652

494,237

-

-

1,081,257

3,049,423

2,410,703

3,647

4,578

-

655,415 -

$ 1,087,442

655,415 -

$

See Accompanying Notes to the Schedule of Expenditures of Federal Awards

3,740,924

$

3,096,950

3,000

439,537

$

3,000

931 $

440,468


Carrollton Public Schools Notes to the Schedule of Expenditures of Federal Awards June 30, 2010

1. The Schedule of Expenditures of Federal Awards was prepared using the accrual basis of accounting. 2. Management has reported the expenditures in the Schedule of Expenditures of Federal Awards equal to those amounts reported in the annual or final cost reports that have been submitted as of June 30, 2010. 3. The federal amounts reported on the Forms R-7120 “Grant Sections Auditors’ Report” and “Grant Auditor Report” are in agreement with the Schedule of Expenditures of Federal Awards. 4. The amounts reported on the Recipient Entitlement Balance Report agree with the Schedule of Expenditures of Federal Awards for U.S.D.A. donated food commodities. 5. The following is a reconciliation between the financial statements and the schedule of expenditures of federal awards. Expenditures per Schedule of Expenditures of Federal Awards

$

Adjustment

3,096,950 (3,000)

Federal revenue per financial statements

$

3,093,950

When the District prepared the final expenditure report for Title II Part A, a typo occurred and $3,000 less was shown on the final expenditure report from what the trial balance and SEFA had. Therefore, the federal government recovered $3,000 in the current year.

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Carrollton Public Schools Schedule of Findings and Questioned Costs June 30, 2010

SECTION I - SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting: 

Material weakness(es) identified?

______ yes

X

no

Significant deficiencies identified that are not considered to be material weaknesses?

______ yes

X

none reported

Noncompliance material to financial statements noted?

______ yes

X

no

Federal Awards Internal control over major programs: 

Material weakness(es) identified?

______ yes

X

no

Significant deficiencies identified that are not considered to be material weaknesses?

______ yes

X

none reported

Type of auditors’ report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133?

__X __ yes

no

Identification of major programs: CFDA Number(s) 84.010 & 84.389 84.027 & 84.391A 84.394

Name of Federal Program or Cluster Title I and ARRA Title I Special Education Cluster ARRA – State Fiscal Stabilization Fund

Dollar threshold used to distinguish between type A and type B programs:

$ 300,000

Auditee qualified as low-risk auditee?

X

9

yes

no


Carrollton Public Schools Schedule of Findings and Questioned Costs June 30, 2010 (continued) SECTION II - GOVERNMENT AUDITING STANDARDS FINDINGS There were no findings related to the financial statements which are required to be reported in accordance with generally accepted government auditing standards for the year ended June 30, 2010. SECTION III - FEDERAL AWARD FINDINGS Program CFDA No: 84.010 CFDA Program Title: Title I Federal Award No: 101530 0910 Federal Award Year: 2009-2010 Finding 2010-1 – Comparability Finding Type – Noncompliance Criteria - To be eligible to receive Title I funds, a Local Educational Agency (LEA) must use state and local funds to provide services in Title I schools that are at least comparable to services provided in non-Title I schools. If the LEA serves all of its schools with Title I funds within a particular grade span, the LEA must use state and local funds to provide services that are substantially comparable in each school. In addition, Districts must provide general education services in all Title I schools that are comparable to those provided in non-Title I schools in each grade span. If all schools are served by Title I, the general education services must be comparable in each school. The district must establish procedures for determining and maintaining comparability. The district is responsible for calculating comparability status annually. Condition - Comparability calculation was not performed in the current year. Questioned Costs – None Context - Title I dollars were used in the current year for the OMNI program. This was the first year this program received Title I funding. Because the high school and Omni program cover the same grade spans, comparability over these two is required. Cause /Effect - This was not realized by the District, and the comparability worksheet was not calculated. Recommendation - Recommend procedures be implemented to make sure the comparability report is completed on an annual basis and on time. Management Response - The District has subsequently prepared the comparability calculation and has submitted the form on August 13, 2010. 10


Carrollton Public Schools Summary Schedule of Prior Audit Findings June 30, 2010 SECTION IV – PRIOR AUDIT FINDINGS There were no audit findings for the year ended June 30, 2009.

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