Finding 503575 (2024-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2024-10-24
Audit: 325729
Organization: Harrison Community Schools (MI)

AI Summary

  • Issue: The School District requested federal funds without having incurred the necessary expenditures first.
  • Impacted Requirement: Reimbursement-based grants require that funds be incurred before cash draws are made.
  • Recommended Follow-Up: Implement controls to monitor incurred expenditures and ensure proper reimbursement requests; training has been provided to the Business Manager on this process.

Finding Text

Criteria or Specific Requirement: Reimbursement based grants require funds to be incurred prior to requesting cash draws Condition: The School District requested federal funds without incurring expenditures to support the entire cash request Context: Internal controls are to be in place to monitor grant expenditures incurred and request reimbursement for the expended amounts Effect: Requesting funds prior to having properly incurred the expenditures results in having grant funds recorded as a deferred revenue. If the School District does not have expenditures by year end to cover the requested funds, the School District will have to pay the funds back Cause: the School District did not have the proper controls in place to monitor they were only requesting funds to cover the incurred expenditures Recomendation: The School District should put controls in place to monitor incurred expenditures and related reimbursements requests Views of the Responsible Officials and Planned Corrective Action Plan: Training has been provided to the Business Manager on how to accurately drawdown federal funds

Corrective Action Plan

The District has put in the proper cash management controls to make sure all federal grant cash draws are within the fiscal year of the School District

Categories

Cash Management

Other Findings in this Audit

  • 503576 2024-001
    Significant Deficiency
  • 1080017 2024-001
    Significant Deficiency
  • 1080018 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $828,157
84.027 Special Education Grants to States $446,766
10.553 School Breakfast Program $281,725
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $85,306
84.424 Student Support and Academic Enrichment Program $68,015
21.019 Coronavirus Relief Fund $45,424
84.425 Education Stabilization Fund $25,262
84.358 Rural Education $21,321
93.778 Medical Assistance Program $10,245
10.559 Summer Food Service Program for Children $10,153
10.558 Child and Adult Care Food Program $3,234
84.196 Education for Homeless Children and Youth $2,899
32.009 Emergency Connectivity Fund Program $1,332
10.555 National School Lunch Program $169