Audit 374476

Program Name: Title IV 24-25 (ALN #84.424, Project #250750-2425) Pass-through Entity: ¬– Michigan Department of Education Finding Type: Cash Management (Material Weakness) Criteria: Requests for cash reimbursements for the program should not occur before expenditures have been incurred. Amounts were requested before expenses were actually incurred. Condition: The Academy requested cash reimbursement in excess of expenditures for the program listed above. The Academy submitted reimbursement requests for FY 24-25 subsequent to the June 30, 2025 year-end for $27,278. The Academy only incurred $ 18,721 in expenditures charged to the grant code, creating cash requests in excess of expenditures. Questioned Costs: $8,557 Context: The Academy had requested cash reimbursement without first incurring the necessary expenditures. Cause/Effect: The Academy requested cash in excess of expenditures in the amount of $8,557. The Academy recorded the over-request as deferred revenue as of June 30, 2025. The SEFA presentation reflects the net of accrued revenue and deferred revenue balances. Recommendation: We recommend that the Academy has an additional responsible party who has knowledge of the grant review the transactions and any adjustments to the amounts charged to the grant before reimbursement requests are made. Views of Responsible Officials and Planned Corrective Action: Management acknowledges the deficiency. See corrective action plan.

Program Name: ARP Grow Your Own (ALN #21.027, Project #232423-20231) Pass-through Entity: Michigan Department of Education Finding Type: Cash Management (Material Weakness) Criteria: Requests for cash reimbursements for the program should not occur before expenditures have been incurred. Amounts were requested before expenses were actually incurred. Condition: The Academy requested cash reimbursement in excess of expenditures for the program listed above. The Academy submitted reimbursement requests totaling $298,843 related to the June 30, 2025 year-end. The Academy only incurred $181,428 in expenditures charged to the grant code, creating cash requests in excess of expenditures. Questioned Costs: $117,415 Context: The Academy had requested cash reimbursement without first incurring the necessary expenditures. Cause/Effect: The Academy requested cash in excess of expenditures in the amount of $117,415. Recommendation: We recommend that the Academy has an additional responsible party who has knowledge of the grant review the transactions and any adjustments to the amounts charged to the grant before reimbursement requests are made. Views of Responsible Officials and Planned Corrective Action: Management acknowledges the deficiency. See corrective action plan.