Finding Text
Program information: Education Stabilization Fund, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425U, Passthrough grantor number 213713.
Criteria: Sections 18 and 19 (MCL 141.438 and 141.439) of the Uniform Budgeting and Accounting Act state that an administrative officer of the local unit shall not incur expenditures against an appropriation account in excess of the amount appropriated by the legislative body. Additionally, the chief administrative officer, an administrative officer, or an employee of the local unit shall not apply or divert money for purposes inconsistent with those specified in the appropriations.
Condition: Budget overages were noted in the General Fund. A material overage was noted in the General Fund for both the ESSER III MEGS budget and final budget approved by the board.
Questioned costs: None.
Cause and effect: Management failed to analyze actual general fund expenses when amending the final budget and MEGS budget.
Recommendation: We recommend that management monitor the budgets throughout the year for all funds and follow the established policies regarding budget preparation and implementation.
Views of responsible officials: Management agrees with the finding.
Corrective action plan: See attached corrective action plan.