Audit 383343

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – ALN NOS. 84.027 AND 84.173 2025-001 Internal Control Over Compliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.302(b)(3) requires Independent School District No. 911 (the District) to maintain records that adequately identify the source and application of funds for federally funded activities in accordance with 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have sufficient controls to ensure adequate and timely documentation of time and effort was created and retained to support salary costs charged to federal programs and ensure compliance with the Uniform Guidance allowable costs standards. Questioned Costs – None noted. Context – For three of three employees tested whose time was charged to this program, the supporting time and effort documentation was not completed in a timely manner, and for one of the three, the salary costs charged to this federal program did not agree to the supporting time and effort documentation. This was not a statistically valid sample. Repeat Finding – This is a current year finding for this program. Cause – This was an oversight by district personnel. Effect – This could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to time and effort documentation of allowable costs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.