Finding 824082 (2022-002)

Pass- through Entity ? Michigan Department of Education Finding Type ? Material Weakness and Material Noncompliance Criteria ? Federal funds must be used only for activities allowed in accordance with the Uniform Guidance and Michigan Department of Education compliance requirements. Condition ? During our testing, we noted that for one of the invoices tested the purchased equipment (Chromebooks) was shipped to the address of the management company and not to the School. No documents were provided to verify that the Chromebooks were provided for the purpose of the School. Questioned Costs ? $49,200 Cause/Effect ? The School claimed reimbursement for expenditures which were potentially not utilized by the School. Identification of a Repeat Finding ? This is not a repeat finding Recommendation ? We recommend that the School retain sufficient audit evidence to substantiate that all claimed expenditures were utilized by the