LANSING – The Michigan Department of Education has not put in strong enough controls over its funds to be sure that improper payments are not being made, according to a report Monday by Auditor General Thomas McTavish.
The financial audit of the department, for the period October 1, 2005 through September 30, 2007, found that the department’s new cash management system had allowed $9.7 million in improper payments to local educational agencies. Auditors found 189 duplicate payments and four payments to the wrong agency.
The audit also cited the department for allowing developers excessive access to the finance system, potentially allowing them to change payment data without the change being detected. Auditors noted the same findings had been made in the past and, despite assurances that improvements had been made, the security issues had not been corrected.
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