FAC Explorer

Finding 1166822 (2025-007)

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: Three ineligible students were mistakenly included on the MARSS listing for special education.
  • Impacted Requirements: The District must ensure only eligible students are reported, highlighting a material weakness in internal controls.
  • Recommended Follow-Up: Implement stronger procedures to verify student eligibility for the MARSS listing to prevent future errors.

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 3 out of 40 students were included on the MARSS listing that should not have been. Criteria or Specific Requirement: The District should have controls in place to ensure that only students eligible for special education programs are included on the MARSS listing. Questioned Costs: None. Context: 3 out of 40 students selected for testing were included on the MARSS listing that should not have been. 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 that only eligible students are included on the MARSS listing. 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 that only eligible students are included on the MARSS listing. 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 establishing procedures and controls to ensure that only eligible students are included on the MARSS listing. 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
  • 1166820 2025-006
    Material Weakness Repeat
  • 1166821 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