Delton Kellogg Schools

Activities/Costs Allowed - Budget Finding Type: Significant Deficiency in Internal Controls over Compliance Criteria: The School is responsible for ensuring that the activities/costs of its federal grants are properly budgeted and approved by MDE. Condition/Finding: During our audit procedures performed to verify that activities/costs were allowable, it was discovered that the Elementary School Assessments were not properly budgeted on the ESSER III budget approved by MDE. Cause: This condition is the result of lack of controls in place by management to appropriately review and amend the budget as necessary throughout the grant term. Effect: As a result of this condition, the School incurred expenses during the year that are not allowable to be reimbursed based on the current budget approved. Recommendation: We recommend that the School establish procedures to ensure that budgets for all federal grants are reviewed at an on-going basis to ensure all expenditures are properly budgeted.

Activities/Costs Allowed Finding Type: Significant Deficiency in Internal Controls over Compliance Criteria: The School is responsible for ensuring that employee wages reimbursed under federal grants have signed semi-annual certifications or activity reports to certify time spent under each grant. Condition/Finding: During our audit procedures ,it was discovered that employees reimbursed under ESSER II and ESSER III did not have signed semi-annual certifications or activity reports on file. Cause: This condition is the result of lack of controls in place by management. Effect: As a result of this condition, the School may not have properly allocated wages to the ESSER II and ESSER III grants. Recommendation: We recommend that the School have employees reimbursed under federal grants sign semi-annual certifications or activity reports to verify allocation of wages.