FAC Explorer

Audit 289920

FY End
2022-06-30
Total Expended
$2.09M
Findings
8
Programs
11
Organization: Minnesota Math and Science Academy (MN)
Year: 2022 Accepted: 2024-02-12
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366854 2022-009 Material Weakness - B
366855 2022-009 Material Weakness - B
366856 2022-009 Material Weakness - B
366857 2022-009 Material Weakness - B
943296 2022-009 Material Weakness - B
943297 2022-009 Material Weakness - B
943298 2022-009 Material Weakness - B
943299 2022-009 Material Weakness - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $800,939 - 1
10.555 National School Lunch Program $261,940 - 0
84.010 Title I Grants to Local Educational Agencies $257,379 - 0
10.553 School Breakfast Program $109,976 - 0
32.009 Emergency Connectivity Fund Program $105,257 - 0
84.027 Special Education_grants to States $90,803 - 0
84.365 English Language Acquisition State Grants $41,382 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $23,568 - 0
84.367 Improving Teacher Quality State Grants $20,817 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $9,807 - 0
10.559 Summer Food Service Program for Children $1,304 - 0

Contacts

Name Title Type
PNFPWM9JHC77 Hasan Damar Auditee
8472279839 Christopher Knopik Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior period. De Minimis Rate Used: N Rate Explanation: Minnesota Math and Science Academy does not charge indirect costs to its federal programs, however if they were to charge indirect costs they would use the indirect cost rate provided to them by the Minnesota Department of Education (the pass-through entity) rather than use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Minnesota Math and Science Academy under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Minnesota Math and Science Academy, it is not intended to and does not present the financial position or changes in net position of Minnesota Math and Science Academy.
Title: INDIRECT COST RATES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in the prior period. De Minimis Rate Used: N Rate Explanation: Minnesota Math and Science Academy does not charge indirect costs to its federal programs, however if they were to charge indirect costs they would use the indirect cost rate provided to them by the Minnesota Department of Education (the pass-through entity) rather than use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Minnesota Math and Science Academy does not charge indirect costs to its federal programs, however if they were to charge indirect costs they would use the indirect cost rate provided to them by the Minnesota Department of Education (the pass-through entity) rather than use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Finding 2022-009
2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.