Finding 1137971 (2024-007)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-05-27

AI Summary

  • Core Issue: Internal control weaknesses were identified, with approvers exceeding their limits and transactions lacking proper invoice support.
  • Impacted Requirements: Transactions must have appropriate approvals and be backed by vendor invoices to ensure compliance with federal funding criteria.
  • Recommended Follow-Up: The District should adhere to its purchasing policy to mitigate risks and improve oversight.

Finding Text

Internal Control – Material Weakness Federal Program Information Funding Agency: U.S. Department of Education Pass-Through Entity: North Dakota State Department of Public Instruction Title: Title I Grants to Local Educational Agencies AL Number: 84.010 Funding Agency: U.S. Department of Education Pass-Through Entity: North Dakota State Department of Public Instruction Pass-Through Entity: North Dakota State Department of Health and Human Services Title: ESF AL Number: 84.425 Criteria A system of internal controls requires all transactions to be properly approved, in addition expenditures should be supported by vendor invoices. Condition During transaction testing, we noted the following items: Title I Three transactions where the approver approved over their allowed threshold. ESF Two transactions that were supported by vendor statements instead of invoices. Questioned Costs N/A Context Title I In a population of over 250, a sample of 40 transactions were tested of which 28 of these were non-payroll transactions. In these 28 transactions, we noted 3 in which the approver had approved an amount in excess of their allowed threshold. ESF In a population of over 250, a sample of 40 transactions were tested of which 36 of these were non-payroll transactions. In these 36 transactions, we noted 2 of which were supported by vendor statements. Effect Increased risk of charging an unallowed transaction to the program. Cause Management oversight. Recommendation We recommend the District follow their purchasing policy. Repeat Finding This is not a repeat finding. Views of Responsible Officials See corrective action plan.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 561526 2024-003
    Material Weakness Repeat
  • 561527 2024-006
    Material Weakness
  • 561528 2024-003
    Material Weakness Repeat
  • 561529 2024-007
    Material Weakness
  • 561530 2024-003
    Material Weakness Repeat
  • 561531 2024-005
    Material Weakness Repeat
  • 561532 2024-007
    Material Weakness
  • 561533 2024-003
    Material Weakness Repeat
  • 561534 2024-005
    Material Weakness Repeat
  • 561535 2024-007
    Material Weakness
  • 561536 2024-003
    Material Weakness Repeat
  • 561537 2024-005
    Material Weakness Repeat
  • 561538 2024-007
    Material Weakness
  • 561539 2024-003
    Material Weakness Repeat
  • 561540 2024-004
    Material Weakness Repeat
  • 561541 2024-003
    Material Weakness Repeat
  • 561542 2024-004
    Material Weakness Repeat
  • 561543 2024-003
    Material Weakness Repeat
  • 561544 2024-004
    Material Weakness Repeat
  • 561545 2024-003
    Material Weakness Repeat
  • 561546 2024-004
    Material Weakness Repeat
  • 561547 2024-003
    Material Weakness Repeat
  • 561548 2024-004
    Material Weakness Repeat
  • 1137968 2024-003
    Material Weakness Repeat
  • 1137969 2024-006
    Material Weakness
  • 1137970 2024-003
    Material Weakness Repeat
  • 1137972 2024-003
    Material Weakness Repeat
  • 1137973 2024-005
    Material Weakness Repeat
  • 1137974 2024-007
    Material Weakness
  • 1137975 2024-003
    Material Weakness Repeat
  • 1137976 2024-005
    Material Weakness Repeat
  • 1137977 2024-007
    Material Weakness
  • 1137978 2024-003
    Material Weakness Repeat
  • 1137979 2024-005
    Material Weakness Repeat
  • 1137980 2024-007
    Material Weakness
  • 1137981 2024-003
    Material Weakness Repeat
  • 1137982 2024-004
    Material Weakness Repeat
  • 1137983 2024-003
    Material Weakness Repeat
  • 1137984 2024-004
    Material Weakness Repeat
  • 1137985 2024-003
    Material Weakness Repeat
  • 1137986 2024-004
    Material Weakness Repeat
  • 1137987 2024-003
    Material Weakness Repeat
  • 1137988 2024-004
    Material Weakness Repeat
  • 1137989 2024-003
    Material Weakness Repeat
  • 1137990 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $4.56M
84.010 Title I Grants to Local Educational Agencies $1.57M
84.371 Comprehensive Literacy Development $263,953
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $182,596
84.060 Indian Education Grants to Local Educational Agencies $157,728
84.425 Education Stabilization Fund $120,000
10.553 School Breakfast Program $112,142
84.424 Student Support and Academic Enrichment Program $95,002
84.287 Twenty-First Century Community Learning Centers $61,991
10.559 Summer Food Service Program for Children $50,500
84.048 Career and Technical Education -- Basic Grants to States $39,184
10.555 National School Lunch Program $30,588
84.358 Rural Education $12,306
10.560 State Administrative Expenses for Child Nutrition $2,190
10.649 Pandemic Ebt Administrative Costs $349