Finding Text
2023-006 – Material Weakness and Material Noncompliance – Cash Management
Program information: COVID-19 Governor’s Emergency Education Relief (GEER), U.S. Department of Education, passed through Michigan Department of Education, AL #84.425C; COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Formula, U.S. Department of Education, passed through Michigan Department of
Education, AL #84.425D; COVID-19 ESSER Education Equity, U.S. Department of Education, passed through Michigan Department of Education, AL #84.425D.
Criteria: The School District should support all expenses that are charged to a grant and should only request funds in amounts that are supported by allowable expenses.
Condition: As of June 30, 2023, the district had unearned revenue recorded related to the ESSER III Grant AL# 84.425U Project 213713. This resulted due to the District requesting expense reimbursements through a cash request, and then subsequently moving the expenses from the ESSER III grant to the ESSER II grant after the funds had already been received in order to spend down their remaining ESSER II grants before they expired.
Questioned costs: None
Cause and effect: Management did not properly reconcile grant revenue and expense accounts at year end.
Recommendation: We recommend that the district reconciles all grant revenues and expenses before the end of the year to ensure that all projects are being fully spent and properly classified within the trial balance.
Views of responsible officials: Management agrees with the finding.
Corrective action plan: See attached corrective action plan.