Finding 1080018 (2024-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2024-10-24
Audit: 325729
Organization: Harrison Community Schools (MI)

AI Summary

  • Issue: The School District requested federal funds without having incurred the necessary expenditures first.
  • Impacted Requirement: Reimbursement-based grants require that funds be incurred before cash draws are made.
  • Recommended Follow-Up: Implement controls to monitor incurred expenditures and ensure proper reimbursement requests; training has been provided to the Business Manager on this process.

Finding Text

Criteria or Specific Requirement: Reimbursement based grants require funds to be incurred prior to requesting cash draws Condition: The School District requested federal funds without incurring expenditures to support the entire cash request Context: Internal controls are to be in place to monitor grant expenditures incurred and request reimbursement for the expended amounts Effect: Requesting funds prior to having properly incurred the expenditures results in having grant funds recorded as a deferred revenue. If the School District does not have expenditures by year end to cover the requested funds, the School District will have to pay the funds back Cause: the School District did not have the proper controls in place to monitor they were only requesting funds to cover the incurred expenditures Recomendation: The School District should put controls in place to monitor incurred expenditures and related reimbursements requests Views of the Responsible Officials and Planned Corrective Action Plan: Training has been provided to the Business Manager on how to accurately drawdown federal funds

Categories

Cash Management

Other Findings in this Audit

  • 503575 2024-001
    Significant Deficiency
  • 503576 2024-001
    Significant Deficiency
  • 1080017 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $828,157
84.027 Special Education Grants to States $446,766
10.553 School Breakfast Program $281,725
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $85,306
84.424 Student Support and Academic Enrichment Program $68,015
21.019 Coronavirus Relief Fund $45,424
84.425 Education Stabilization Fund $25,262
84.358 Rural Education $21,321
93.778 Medical Assistance Program $10,245
10.559 Summer Food Service Program for Children $10,153
10.558 Child and Adult Care Food Program $3,234
84.196 Education for Homeless Children and Youth $2,899
32.009 Emergency Connectivity Fund Program $1,332
10.555 National School Lunch Program $169