Finding Text
Finding 2023-004: Education Stabilization Fund Special Reporting Procedures
U.S. Department of Education
Pass-through agency: Michigan Department of Education
Assistance Listing Numbers: 84.425D and 84.425U
Award numbers: COVID-19 213712-2021 and COVID-19 213713-2122
Award year end: September 30, 2024
Specific Requirement: Reporting—Special Reporting
Criteria: OMB No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency/subrecipients submit data to the state education agency (SEA) /Governor for the SEA’s/Governor’s report.
Questioned Costs: None.
Condition: The required learning loss plan and budget reports were not timely prepared and posted to the transparency page of the Schools District’s website.
Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the learning loss plan and budget reports were prepared to comply with federal requirements. However, the reports were not timely prepared or timely reviewed by the program supervisor with documented approval. The reports were subsequently prepared after the School District received a letter from the Michigan Department of Education indicating that the School District had missed the reporting due date.
Effect: Failure to timely prepare and review special reporting results in non-compliance with federal compliance requirements.
Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some special reports to not be completed timely as there was no available replacement during this time.
Repeat Finding: This is not a repeat finding.
Recommendation: The School District should provide training to accounting department personnel in federal programs of the requirements for special reporting under Uniform Grant Guidance, and the School District should require the necessary special reports to be timely prepared and reviewed by the appropriate accounting department personnel.
Views of Responsible Officials: The School District agrees with this finding.