Finding Text
EDUCATION STABILIZATION FUND – ALLOWABLE COSTS U.S. Department of Education COVID-19 Education Stabilization Fund Assistance Listing Number: 84.425 Passed Through Minnesota Department of Education Pass Through Number: S425U220045 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Uniform Guidance requires charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. In addition, these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, be incorporated into the official records of the entity, and reasonably reflect the total activity for which the employee is compensated. Condition: During our testing of a sample of payroll transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Forty-five payroll disbursements were selected for testing. Three disbursements lacked documented supervisor approval, which is required to validate time worked and authorize payment. Additionally, one disbursement included amounts incorrectly allocated to the program based on the employee’s intended time allocation. Questioned costs: $7,070 Cause: Support for timesheets was not retained Effect: The District is not in compliance with the Uniform Guidance. Repeat finding: Yes – 2023-005. Recommendation: We recommend the District puts in place proper controls to ensure supporting documentation for timesheets is retained for all employees Views of responsible officials: There is no disagreement with the finding.