FAC Explorer

Finding 1164934 (2025-002)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-12-16
Audit: 374865
Organization: Ypsilanti Community Schools (MI)
Auditor: YEO & YEO PC

AI Summary

  • Core Issue: The School District lacks proper internal controls for documenting expenditures related to reimbursement requests, leading to discrepancies.
  • Impacted Requirements: Compliance with Uniform Guidance and 2 CFR 200.305(b)(3) is not being met, risking inaccurate grant charges.
  • Recommended Follow-Up: Implement a robust process to ensure accurate documentation and compliance with reimbursement requirements.

Finding Text

Program Name: Literacy Excellence Accelerates Performance – 84.215G Magnet Schools Assistance ARC – 84.165 Awarding Agency: U.S. Department of Education Finding Type: Significant Deficiency on Internal Controls over Compliance and Noncompliance Questioned Cost Amount: None Context / Criteria: The School District should maintain internal controls to retain documentation that is available to support the expenditures that were paid prior to the request for reimbursement based on Uniform Guidance. The internal controls should provide reasonable assurance that the expenditures are accurate, allowable, and properly allocated as to grant and period. Condition: We noted one reimbursement request for the Literacy Excellence Accelerates Performance program and one for the Magnet Schools Assistance ARC program where supporting documentation did not match the amounts requested for reimbursement. Cause / Effect: The School District has not established appropriate controls for all cash reimbursement requests to have a report retained that reflects the supporting expenditures. The School District may undercharge or overcharge the grant as a result. Recommendation: We recommend that the School District implement a process to ensure the School District is following and complying with 2 CFR 200.305(b)(3). Views of Responsible Officials and Corrective Actions: Management is in agreement with the finding. See accompanying corrective action plan.

Corrective Action Plan

Corrective Action: The Finance Director will establish clear timelines for submitting and processing payment requests to prevent any discrepancies in cash requests or disbursements. Well-defined internal procedures, including submission deadlines and approval workflows, will ensure that funds are requested, approved, and drawn down efficiently. Ongoing monitoring of pending requests, coupled with proactive communication among team members, will further support timely financial management and minimize any risks. Responsible Person: Director of Finance

Categories

Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164919 2025-001
    Material Weakness Repeat
  • 1164920 2025-001
    Material Weakness Repeat
  • 1164921 2025-002
    Material Weakness Repeat
  • 1164922 2025-003
    Material Weakness Repeat
  • 1164923 2025-001
    Material Weakness Repeat
  • 1164924 2025-002
    Material Weakness Repeat
  • 1164925 2025-003
    Material Weakness Repeat
  • 1164926 2025-001
    Material Weakness Repeat
  • 1164927 2025-002
    Material Weakness Repeat
  • 1164928 2025-003
    Material Weakness Repeat
  • 1164929 2025-001
    Material Weakness Repeat
  • 1164930 2025-001
    Material Weakness Repeat
  • 1164931 2025-001
    Material Weakness Repeat
  • 1164932 2025-001
    Material Weakness Repeat
  • 1164933 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $3.28M
84.165 MAGNET SCHOOLS ASSISTANCE $2.43M
93.600 HEAD START $2.18M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.80M
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $1.17M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.06M
84.374 TEACHER AND SCHOOL LEADER INCENTIVE GRANTS (FORMERLY THE TEACHER INCENTIVE FUND) $1.02M
84.425 EDUCATION STABILIZATION FUND $803,043
10.553 SCHOOL BREAKFAST PROGRAM $752,372
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $271,950
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $214,554
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $185,000
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $57,332
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $41,530
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $40,305
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $30,616
21.019 CORONAVIRUS RELIEF FUND $29,696
10.558 CHILD AND ADULT CARE FOOD PROGRAM $6,009
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $-14,689