Finding 627092 (2022-002)

Material Weakness
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2022-11-02
Audit: 53600
Organization: Clintondale Community Schools (MI)
Auditor: Lewis & Knopf PC

AI Summary

  • Core Issue: The District requested cash reimbursements of $16,776 before actual expenditures were incurred, leading to a material weakness in cash management.
  • Impacted Requirements: Reimbursement requests should only be made after expenses have been documented, which was not followed in this case.
  • Recommended Follow-up: Implement a review process involving an additional knowledgeable party to verify transactions and adjustments before submitting reimbursement requests.

Finding Text

Finding 2022-002 Program Name ? Title I (ALN 84.010) Pass-through Entity ?? Michigan Department of Education Finding Type ? Cash Management (Material Weakness) Criteria ? Requests for cash reimbursements for the program should not occur before expenditures have been incurred. Amounts for payroll related expenditures were requested before they were actually incurred. Condition ? The District requested cash reimbursement in excess of expenditures for the program listed above. Questioned Costs ? $16,776 Context ? The District had previously overdrawn the 19-20 Title I grant, but was able to still correct the final draw as it was discovered prior to 9/30/20. It appears that the District had included this amount in their 20-21 grant, thus overdrawing the 20-21 year as they did not have sufficient expenses to support the total draws requested. Cause/Effect ? The District requested cash in excess of expenditures in the amount of $16,776. Recommendation: We recommend that the District has an additional responsible party who has knowledge of the grant review the transactions and any adjustments to the amounts charged to the grant before reimbursement requests are made.

Categories

Questioned Costs Cash Management Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 50644 2022-003
    Material Weakness
  • 50645 2022-004
    Material Weakness
  • 50646 2022-004
    Material Weakness
  • 50647 2022-004
    Material Weakness
  • 50648 2022-004
    Material Weakness
  • 50649 2022-002
    Material Weakness
  • 50650 2022-002
    Material Weakness
  • 627086 2022-003
    Material Weakness
  • 627087 2022-004
    Material Weakness
  • 627088 2022-004
    Material Weakness
  • 627089 2022-004
    Material Weakness
  • 627090 2022-004
    Material Weakness
  • 627091 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $409,413
84.027 Special Education_grants to States $171,231
84.425 Education Stabilization Fund $141,481
84.367 Improving Teacher Quality State Grants $98,687
10.555 National School Lunch Program $36,258
84.424 Student Support and Academic Enrichment Program $33,250
10.559 Summer Food Service Program for Children $32,158
10.553 School Breakfast Program $19,129
84.048 Career and Technical Education -- Basic Grants to States $17,000
84.173 Special Education_preschool Grants $13,209
10.558 Child and Adult Care Food Program $5,896
10.649 Pandemic Ebt Administrative Costs $3,063