Hamtramck board accepts final 2023–24 audit, approves budget amendment; auditors flag untimely reconciliations and $10.2 million deferred federal revenue

The Hamtramck Board of Education on Wednesday accepted the district—s final audit for the 2023 24 fiscal year and approved a 2024 25 budget amendment after an extended presentation by the district—s auditors about federal grant timing and internal-control weaknesses.

The auditors, from the firm Yo and Yo, issued an unmodified opinion on the financial statements but identified one material weakness: a lack of timely reconciliations of accounting records. Auditor Brian Lisonbee told the board the district had to defer about $10.2 million in federal grant revenue because the funds were not collected within the 60-day recognition window, a timing issue that reduced the reported general-fund balance from roughly $18 million (if recognized) to $7.9 million at June 30, 2024.

The audit matters mattered because deferred federal reimbursements and large capital outlays affected year-to-year comparisons of revenue and expenditures. In fiscal 2024 the district reported roughly $58.8 million in revenues and $70.8 million in expenditures, producing an $11.9 million decrease in fund balance; auditors said capital outlay (including HVAC and building work) accounted for a large portion of the spending increase.

"We issued an unmodified opinion," Lisonbee said during the presentation, adding that the accounting was accurate once reconciliations and documentation were provided but that the district must improve timing.…