Audit 47168

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE ? U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES ? FEDERAL ALN 84.010 2022-003 Internal Control and Noncompliance With Allowable Cost Requirements Criteria ? 2 CFR ? 200.400 (i) requires Independent School District No. 624 (the District) to maintain records that adequately and accurately identify the source and application of funds for federally-funded activities to ensure the proper determination of allowable costs 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 proper determination of allowable costs charged to federal programs and compliance with the U.S. Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in noncompliance. Questioned Costs ? $26,466. Context ? The District did not properly determine the allowable costs for salaries for 2 of 3 employees sampled. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. Effect ? Noncompliance with the allowable costs requirements resulted in the District receiving reimbursements for unsupported costs. Recommendation ? We recommend that the District review its internal control procedures relating to documentation and determination of allowable costs for its Title I federal program. 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 documentation and determination of 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.

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE ? U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES ? FEDERAL ALN 84.010 2022-003 Internal Control and Noncompliance With Allowable Cost Requirements Criteria ? 2 CFR ? 200.400 (i) requires Independent School District No. 624 (the District) to maintain records that adequately and accurately identify the source and application of funds for federally-funded activities to ensure the proper determination of allowable costs 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 proper determination of allowable costs charged to federal programs and compliance with the U.S. Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in noncompliance. Questioned Costs ? $26,466. Context ? The District did not properly determine the allowable costs for salaries for 2 of 3 employees sampled. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? This was an oversight by district personnel. Effect ? Noncompliance with the allowable costs requirements resulted in the District receiving reimbursements for unsupported costs. Recommendation ? We recommend that the District review its internal control procedures relating to documentation and determination of allowable costs for its Title I federal program. 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 documentation and determination of 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.