FAC Explorer

Finding 1166820 (2025-006)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2025-12-29
Audit: 377938
Organization: Independent School District No. 381 (MN)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Journal entries for grant expense allocation lacked independent review, leading to potential inaccuracies.
  • Impacted Requirements: The District must have documented controls to ensure accuracy in journal entries for the Special Education Cluster program.
  • Recommended Follow-Up: Implement procedures to ensure all journal entries are reviewed by someone other than the preparer before posting.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: Unknown – 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): H027A240087 and H173A240086 Type of Finding: Material Weakness in Internal Control over Compliance Condition: During allowable costs/allowable activities testing, it was noted that journal entries made to allocate expenses related to the grant were not reviewed by someone other than the preparer. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all journal entries used to allocate expenses for the District’s Special Education Cluster program. These controls should be formally documented to ensure they have been properly implemented. Questioned Costs: None. Context: 1 out of 3 journal entries selected did not have proper review process implemented. Effect: Lack of proper documentation of controls over compliance with allowable costs/allowable activities requirements could result in errors being reported and going undetected or not deterred in a timely manner. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: Not applicable Recommendation: We recommend that the District implement procedures and controls to ensure the journal entries are accurate before posting. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend that the District implement procedures and controls to ensure the journal entries are accurate before posting. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The District will continue to work on implementing procedures and controls to ensure all journal entries are reviewed and accurate before posting. Official Responsible for Ensuring CAP: Tanner Spawn, Business Manager. Planned Completion Date for CAP: June 30, 2026.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 1166816 2025-005
    Material Weakness Repeat
  • 1166817 2025-005
    Material Weakness Repeat
  • 1166818 2025-005
    Material Weakness Repeat
  • 1166819 2025-006
    Material Weakness Repeat
  • 1166821 2025-007
    Material Weakness Repeat
  • 1166822 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $402,113
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $290,064
10.555 NATIONAL SCHOOL LUNCH PROGRAM $213,166
32.004 UNIVERSAL SERVICE FUND - SCHOOLS AND LIBRARIES $104,095
10.553 SCHOOL BREAKFAST PROGRAM $74,487
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $38,980
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $21,978
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $14,091
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $8,452
84.358 RURAL EDUCATION $4,119
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $1,015