Finding 5530 (2023-004)

Cash Management Program Title: Education Stabilization Fund CFDA Number: 84.425D & 84.425U Federal Award Number: 213712-2021 & 213713-2122 Federal Award Year: March 2020 – September 2024 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Cash Management; significant deficiency in internal control, immaterial noncompliance Criteria: In accordance with OMB requirements, the District can only request funds for expenditures that the District has paid for. Condition: The School District claimed more reimbursements than they had expended. Cause: The District failed to have controls in place that would prevent, detect, or correct an incorrect cash request. Effect: The District’s internal controls over compliance were found to be ineffective which caused instances of immaterial noncompliance. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Questioned Costs: None Identification of Repeat Findings: None Recommendation: The District should begin reconciling federal expenditures prior to requesting reimbursements. View of Responsible Officials: The District is implementing additional procedures to ensure funds are requested to meet only the immediate cash needs of the federal programs.