Audit 29305

Section III - Federal Award Findings and Questioned Costs 2022-006 Cash Management Finding Type: Significant Deficiency in Internal Controls Over Compliance Program Names: rock and roll hall of fame fan votes Criteria: Cash management principles require that costs are incurred before reimbursement is requested, or related cost disbursements are made shortly after the grant draw down is received. The grant reimbursement should be based on actual costs as evidenced by actual invoices, general ledger detail, or other supporting data. Condition: The District did not maintain supporting documentation for interim grant drawdowns made during the year. Grant revenues were not reconciled with general ledger grant expenditures until year end. When reconciled at year end, $3,505 was overdrawn and due back to the State of Michigan. Context: The District did not have a system in place to properly support grant drawdowns made on an interim basis during the year. As a result interim grant drawdowns may not have reflected actual cash disbursements incurred before or shortly after the drawdown. Cause: The District did not have a system in place to properly support grant drawdowns made on an interim basis during the year. Effect: Audit adjustments were required at year end to record amounts due back to the State for overdrawn grant reimbursements. Questioned Costs: None Recommendation: The District should base interim grant draw downs on actual general ledger expenditures and other supporting data and maintain that documentation to support the drawdown amount. View of Responsible Officials: Assistant Superintendent will approval all drawdowns and record documentation in grant notebook

Section III - Federal Award Findings and Questioned Costs 2022-006 Cash Management Finding Type: Significant Deficiency in Internal Controls Over Compliance Program Names: rock and roll hall of fame fan votes Criteria: Cash management principles require that costs are incurred before reimbursement is requested, or related cost disbursements are made shortly after the grant draw down is received. The grant reimbursement should be based on actual costs as evidenced by actual invoices, general ledger detail, or other supporting data. Condition: The District did not maintain supporting documentation for interim grant drawdowns made during the year. Grant revenues were not reconciled with general ledger grant expenditures until year end. When reconciled at year end, $3,505 was overdrawn and due back to the State of Michigan. Context: The District did not have a system in place to properly support grant drawdowns made on an interim basis during the year. As a result interim grant drawdowns may not have reflected actual cash disbursements incurred before or shortly after the drawdown. Cause: The District did not have a system in place to properly support grant drawdowns made on an interim basis during the year. Effect: Audit adjustments were required at year end to record amounts due back to the State for overdrawn grant reimbursements. Questioned Costs: None Recommendation: The District should base interim grant draw downs on actual general ledger expenditures and other supporting data and maintain that documentation to support the drawdown amount. View of Responsible Officials: Assistant Superintendent will approval all drawdowns and record documentation in grant notebook