Finding Text
Activities/Costs Allowed - Budget
Finding Type: Significant Deficiency in Internal Controls over Compliance
Criteria: The School is responsible for ensuring that the activities/costs of its federal
grants are properly budgeted and approved by MDE.
Condition/Finding: During our audit procedures performed to verify that activities/costs were
allowable, it was discovered that the Elementary School Assessments were
not properly budgeted on the ESSER III budget approved by MDE.
Cause: This condition is the result of lack of controls in place by management to
appropriately review and amend the budget as necessary throughout the
grant term.
Effect: As a result of this condition, the School incurred expenses during the year
that are not allowable to be reimbursed based on the current budget
approved.
Recommendation: We recommend that the School establish procedures to ensure that budgets
for all federal grants are reviewed at an on-going basis to ensure all
expenditures are properly budgeted.