Finding 1164970 (2025-003)

Material Weakness Repeat Finding
Requirement
ABH
Questioned Costs
-
Year
2025
Accepted
2025-12-16

AI Summary

  • Core Issue: Two payroll and one non-payroll transaction lacked proper approval, violating internal control policies.
  • Impacted Requirements: The Council's policy mandates that all non-payroll transactions be approved by a supervisor or executive director, and wages must be signed off by the Business Manager.
  • Recommended Follow-Up: Ensure adherence to internal control policies for all disbursements to mitigate the risk of unallowable expenses.

Finding Text

AL#84.027 and #84.173 Special Education – Grants to States (IDEAS, Part B) Special Education Cluster award year 2025. Activities Allowed or Unallowed and Allowable Costs/Cost Principles (AB) Period of Performance (H) Criteria The Council’s policy is to ensure either the direct supervisor or executive director approves all non-payroll transactions. Furthermore, the Council has a policy that all wages are approved and signed off by the Business Manager. Condition During testing, we haphazardly selected 40 transactions and we noted 2 payroll transactions and one non-payroll transaction that did not have proper approval. Cause Management oversight. Effect There is an increased risk of charging an unallowable expense to the program. Questioned Costs Not applicable. Repeat Finding No. Recommendation We recommend the Council follow their internal control policy over disbursements. Management’s Response The Council is in agreement with the recommendation.

Corrective Action Plan

1. Correcting Plan Council will review and update internal control policies and procedures over cash disbursements. 2. Explanation of Disagreement with the Audit Findings There is essentially no disagreement with the finding. 3. Official Responsible for Insuring CAP The Executive Director, Renae Donaghue, is responsible for carrying out the corrective action plan. 4. Planned Completion Date for CAP Immediately. 5. Plan to Monitor Completion of CAP The Director will monitor completion of the CAP.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164965 2025-003
    Material Weakness Repeat
  • 1164966 2025-003
    Material Weakness Repeat
  • 1164967 2025-003
    Material Weakness Repeat
  • 1164968 2025-003
    Material Weakness Repeat
  • 1164969 2025-003
    Material Weakness Repeat
  • 1164971 2025-004
    Material Weakness Repeat
  • 1164972 2025-004
    Material Weakness Repeat
  • 1164973 2025-004
    Material Weakness Repeat
  • 1164974 2025-004
    Material Weakness Repeat
  • 1164975 2025-004
    Material Weakness Repeat
  • 1164976 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $173,267
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $53,080
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $52,942