FAC Explorer

Finding 1236006 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-09-22
Audit: 411612
Organization: Seeds (MI)
Auditor: DENNIS GARTLAND & NIERGARTH

AI Summary

  • Core Issue: A $9,000 coaching contract was charged to grants for a period that does not match the actual service dates.
  • Impacted Requirements: Costs must align with the grant's budget/expenditure period, which is from July 1, 2024 to June 30, 2025.
  • Recommended Follow-Up: Review and adjust the charges to ensure compliance with grant period requirements.

Finding Text

During testing, we identified a contracted coaching/professional development service contract totaling $9,000 that was charged to grants with a budget/expenditure period of July 1, 2024 through June 30, 2025. The related statement of work/contract indicates the services were for the September 2025 through June 2026 period. Accordingly, the service period did not align with the July 1, 2024 through June 30, 2025 grant period to which the costs were charged.

Corrective Action Plan

The Organization agrees with the finding. Management identified that a $9,000 contracted service agreement was recorded outside the approved budget period due to a timing alignment issue. Management has already proactively contacted the state pass-through entity (MiLEAP) to notify them of this period of performance variance. Management is actively coordinating a downward Final Expenditure Report (FER) modification with the state to correct the historical allocation and will ensure the expense is properly charged to the active 2025-2026 grant period moving forward. The SEFA presented in these financial statements reflect a $9,000 reduction to the 2024-2025 grant period, and an increase to the 2025-2026 grant period to account for this corrective action.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1236001 2025-003
    Material Weakness Repeat
  • 1236002 2025-003
    Material Weakness Repeat
  • 1236003 2025-003
    Material Weakness Repeat
  • 1236004 2025-003
    Material Weakness Repeat
  • 1236005 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $484,966
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $58,297
81.041 STATE ENERGY PROGRAM $45,453
11.463 HABITAT CONSERVATION $24,355