Finding Text
Finding 2025-001: Considered a significant deficiency in internal control over compliance. Federal Program: Supporting Effective Instruction State Grants (Title II, Part A) and Student Support and Academic Enrichment (Title IV, Part A) Assistance Listing #: 84.367 and 84.424 Federal Agency: U.S. Department of Education Pass-through Entity: Michigan Department of Education Pass-through Number: 250520-2425 and 250750-2425 Criteria: In order to comply with Michigan Department of Education requirements, payments for expenditures related to the programs are on a reimbursement basis only. Condition: During our review of cash drawdowns performed throughout the year for Title II, Part A and Title IV, Part A, it was noted that drawdowns exceeded the expenditures incurred during the period. Questioned Costs: Unknown Cause: Due to staffing constraints during the year, drawdowns were not reconciled in a timely manner. Effect: The District was not in compliance with the cash management requirements as specified by the Michigan Department of Education. Identification of a Repeat Finding: This is a repeat finding from the immediate previous audit, 2024-002. Recommendation: The District should conduct a thorough review of cash drawdown procedures to ensure that drawdowns align with the expenditures incurred prior to the withdrawal of funds. District’s Response: The District concurs with the facts of this finding and is implementing procedures to ensure compliance with cash management guidelines.