Finding 496397 (2022-003)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2024-09-11

Audit: 319292

Organization: Washington Parks Academy (MI)

Auditor: The Clairmount Group Plc

AI Summary

Core Issue: The Academy failed to comply with the State School Aid Act by not submitting annual audits on time.
Impacted Requirements: Compliance with MCL 388.1718, which mandates audit submissions by November 1.
Recommended Follow-Up: Establish a process to designate individuals responsible for monitoring compliance requirements year-round.

Finding Text

Criteria There should be a process in place to ensure that the Academy complies with laws and regulations. Condition There was an instance identified where the Academy was not in compliance with laws and regulations. State School Aid Act MCL 388.1718 requires that annual audits are submitted by November 1 to the Michigan Department of Education. Cause/Effect There was a change in staff and staff shortages, which led to noncompliance with MCL 388.1718. Recommendation We recommend that the Academy implement a process that identifies specific individuals to identify and monitor applicable compliance requirements throughout the year.

Corrective Action Plan

The necessary review and analysis of GL accounts will be completed according to the established month end and annual close procedure check lists. Audit engagement will begin no later than August for FY 2023. Any new, as well as current staff, will receive periodic in-service centered around the MI Public School Accounting manual to ensure thorough understanding of the expectations and processes for school fund accounting.

Other Findings in this Audit

496395 2022-001

Material Weakness Repeat
496396 2022-002

Material Weakness
496398 2022-004

Material Weakness
496399 2022-005

Material Weakness
496400 2022-006

Material Weakness
1072837 2022-001

Material Weakness Repeat
1072838 2022-002

Material Weakness
1072839 2022-003

Material Weakness
1072840 2022-004

Material Weakness
1072841 2022-005

Material Weakness
1072842 2022-006

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
10.555	National School Lunch Program	$320,537
84.010	Title I Grants to Local Educational Agencies	$280,986
84.027	Special Education_grants to States	$224,700
84.425	Education Stabilization Fund	$114,436
84.367	Improving Teacher Quality State Grants	$38,179
10.553	School Breakfast Program	$35,280
10.565	Commodity Supplemental Food Program	$34,604
10.649	Pandemic Ebt Administrative Costs	$3,063