Finding Text
Finding 2022-004 ESSER Expenditures Compliance with Budget Finding Type: Compliance Finding/Significant Deficiency in Internal Control Over Compliance of a Major Program. Criteria: Expenditures charged to the ESSER grants should be consistent with and stay within the expenditures budget submitted to and approved by the State of Michigan. Condition: Expenditures for the purchase of books ($6,422) which could not be traced to the state approved ESSER II budget, and transportation service in excess of the state approved budget in ESSER II ($8,568) were charged to the ESSER II grant during the year ended June 30, 2022. Cause: Expenditures are being requested and charged to ESSER grant programs in the general ledger without verification that the expenditures are in accordance with the state approved budgeted activities and amounts. Effect: Expenditures of $14,990 were charged to the ESSER II grant while it appears that they were not included in the most recently amended state approved ESSER II budget, or exceeded the approved budgeted amount. Recommendation: The Academy should verify that proposed ESSER grant expenditures relate to an allowable activity and\or available budget exists in the State approved ESSER budgets before charging such expenditures to the grant. View of Responsible Officials: George Washington Carver Academy and the finance company have added procedures that all items posted to federal grants are reviewed by two people to ensure that the expenses is allowable to federal grants, along with appropriations left in the grant and from the finance company along with the Superintendent to ensure the proper posting of expenditures in accordance to the grant application. Questioned Costs: $14,990