Finding 10418 (2023-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-01-29
Audit: 14080
Organization: Isd #485 Royalton (MN)

AI Summary

  • Core Issue: The District failed to follow disbursement procedures for 17 out of 18 non-payroll transactions tested.
  • Impacted Requirements: Internal controls for transaction approval are lacking, increasing the risk of unallowable charges to the grant.
  • Recommended Follow-Up: The District should adhere to their cash disbursement procedures to ensure compliance.

Finding Text

Federal Program: Education Stabilization Fund (AL 84.425U) Allowable Activities/Costs Criteria: A system of internal controls requires entities to have controls in place to ensure approval of all transactions. Condition: We noted during testing, the District did not follow their disbursement procedures on 17 out of 18 non-payroll transactions tested. Questioned Costs: None. Context: 23 transactions were selected from a population of 225. The sample is not statistically valid. Effect: There is an increased risk of charging unallowable transactions to the grant. Cause: The District does not have controls in place to ensure all non-payroll transactions are being approved. Repeat Finding: No. Recommendation: The District should follow their cash disbursement procedures. Views of Responsible Officials: The District agrees with the recommendation.

Corrective Action Plan

Contact Person – Kristine Wehrkamp Herman, Superintendent; Corrective Action Plan – The District will follow their cash disbursement procedures.; Completion Date – January 31, 2024

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 10417 2023-002
    Material Weakness
  • 586859 2023-002
    Material Weakness
  • 586860 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $482,935
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $121,937
32.009 Emergency Connectivity Fund Program $104,000
84.010 Title I Grants to Local Educational Agencies $90,125
10.553 School Breakfast Program $60,561
10.555 National School Lunch Program $34,863
84.367 Improving Teacher Quality State Grants $16,478
84.048 Career and Technical Education -- Basic Grants to States $4,333
10.649 Pandemic Ebt Administrative Costs $628