Finding 1168327 (2025-007)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-08
Audit: 380131
Organization: Independent School District 701 (MN)
Auditor: STERLE & CO LTD

AI Summary

  • Core Issue: The District lacks proper documentation for time and effort related to employee activities.
  • Impacted Requirements: This violates federal guidelines under 2 C.F.R. 200.430(i) and 200.302(b)(3) regarding allowable costs.
  • Recommended Follow-Up: The District should create effective payroll reporting and time-and-effort documentation to support program charges.

Finding Text

Inadequate documentation over time and effort Condition: The District was unable to provide appropriate documentation under allowable cost/cost principles regarding time-and-effort requirements (employee activity reproting). Criteria: Federal guidance requires the District to appropriately document employee's activites under Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 C.F.R. 200.430 (i) and 200.302(b)(3). Cause: The District had new administrative staff in the position during the fiscal year that were unaware of the requirement to document the time through records delineating time spent by staff between federal and state activities. Effect: The District was unable to provide documentation for all wages and benefist charged to the program other than to utilize job descriptions and budgets. Recommendation: The District should develop appropriate payroll reporting and time-and-effort documenation to support the charges.

Corrective Action Plan

Inadequate documentation over time and effort Actions Planned - The District has met with the administrative team and expressed the necessity to follow all documentation requirements. Administrative duties changed during the fiscal year and the position overseeing the federal program was unaware of the requirement to document the time spent between state and federal activity. Official Responsible - Business Manager and Superintendent of Schools Planned Completion Date - December 31st, 2025 Disagreement with Finding - None - ISD #701-Hibbing concurs with the findng. Plan to Monitor - Further training and updates will be shared with the adminsitrative team as well as paryoll personel to ensure approriate documentaiton is provided.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1168326 2025-002
    Material Weakness Repeat
  • 1168328 2025-002
    Material Weakness Repeat
  • 1168329 2025-002
    Material Weakness Repeat
  • 1168330 2025-002
    Material Weakness Repeat
  • 1168331 2025-002
    Material Weakness Repeat
  • 1168332 2025-002
    Material Weakness Repeat
  • 1168333 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $700,687
84.027 SPECIAL EDUCATION GRANTS TO STATES $551,387
10.553 SCHOOL BREAKFAST PROGRAM $177,711
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $101,433
10.555 NATIONAL SCHOOL LUNCH PROGRAM $91,841
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $35,957
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $26,311
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $21,784
10.558 CHILD AND ADULT CARE FOOD PROGRAM $21,441
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $21,248
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $19,759
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $19,582
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $8,782
10.556 SPECIAL MILK PROGRAM FOR CHILDREN $4,424