Finding Text
2022-002 - Budgetary Control (repeat) Finding Type: Material weakness in internal controls over financial reporting. Criteria: The State of Michigan requires that school districts adopt budgets for the general fund and all special revenue funds. Expenditures may not be incurred in any of those funds prior to formal authorization through the approval or amendment of the budget. Condition: During our audit we noted that multiple departments and funds had material actual expenditures in excess of the amounts appropriated. Cause: The general fund and special revenue fund budget amendments were not sufficient to cover the actual expenditures. Effect: As a result of this condition, the District has material appropriations in excess of the amounts budgeted. Recommendation: We recommend that the District perform a detailed analysis of actual expenditures for each special revenue fund, at a minimum by department, throughout the year and, as it becomes known that budgeted expenditures are no longer realistic, that the Board take action to amend the budget(s) accordingly. View of Responsible Officials (Corrective Action): See corrective action plan.