Last year many districts received audit findings related to SAS 112 saying that district personnel didn't have the expertise or knowledge to prepare financial statements according to GAAP. That was the correct way for the auditors to report it rather than as a management letter issue or disregarding it. Unfortunately, if it was reported as a material weakness, the district is not able to be a low risk auditee this year unless it applies for and receives a waiver. This is unfortunate because financial statement preparation issues don't affect the management of federal awards.
OMB Circular A-133 permits waivers for purposes of low-risk auditee status. (See Section .530). Click here for more information.
This process requires concurrence by the Michigan Department of Education. The Department has signed a generic concurrence letter for all districts to use. The concurrence letter has been put on the audits listserv and the MDE website.