Audit 376196

Program Name – Title I (ALN 84.010) 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. Condition – The District requested cash reimbursement in excess of expenditures for the program listed above. Questioned Costs – $55,945 Context – The District had requested cash reimbursement without first incurring the necessary expenditures. Cause/Effect – The District requested cash in excess of expenditures in the amount of $55,945. Recommendation – We recommend that the district 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 official(s) of the auditee – See corrective action plan.

Program Name – ESSER III Formula (ALN 84.425U) Pass-through Entity ¬– Michigan Department of Education Finding Type – Allowable Costs (Material Weakness) Criteria – The district did not fully liquidate expenditures by 12/30/24. Condition – The district prepaid for professional development that never occurred. The vendor never received payment and instead applied the payment to a replacement service that occurred after the 12/30/24 deadline. Questioned Costs – $56,400 Context – The district prepaid for professional development that never occurred. The vendor never received payment and instead applied the payment to a replacement service that occurred after the 12/30/24 deadline. Cause/Effect – The District requested cash reimbursement based upon unallowable costs. Recommendation – We recommend that the district 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 official(s) of the auditee – See corrective action plan.

Program Name – ESSER III Formula (ALN 84.425U) 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. Condition – The District requested cash reimbursement in excess of expenditures for the program listed above. Questioned Costs – $26,734 Context – The district did not properly identify expenditures by state & responsibility code and received revenue in excess of expenditures for the program noted above. Cause/Effect – The District requested cash in excess of expenditures in the amount of $26,734. Recommendation – We recommend that the district 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 official(s) of the auditee – See corrective action plan.