Finding 1175829 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-03-02
Audit: 389783
Auditor: BRADY MARTZ

AI Summary

  • Core Issue: The Cooperative lacked adequate support for two transactions related to subrecipient costs.
  • Impacted Requirements: Federal guidelines require accurate records for salaries and wages, which were not met.
  • Recommended Follow-Up: Implement stronger controls to review and monitor subrecipient documentation effectively.

Finding Text

Allowable Costs Federal Program Information Funding Agency: U.S. Department of Education Title: 21ST Century Community Learning Centers AL Number: 84.287 Criteria Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. (2 CFR section 200.430(g)) Condition The Cooperative had two transactions that did not have adequate support. Questioned Costs None. Context We noted one transaction had subrecipient time sheets that were not reviewed by the site monitor and the subrecipient reimbursement check was not approved by the Cooperative’s board. We also noted one instance of a subrecipient reporting hours based on estimated hours instead of actual hours worked. Effect The Cooperative did not properly monitor the subrecipients’ supporting documentation, which could lead to noncompliance. Cause During our testing of the Cooperative’s internal controls, it was noted that proper controls were not in place. Repeat Finding This is not a repeat finding. Recommendation The Cooperative should ensure controls are in place to properly review and monitor subrecipients’ reimbursement support. Management’s Response The Cooperative agrees with the recommendation and will ensure controls are in place to properly review and monitor subrecipients.

Corrective Action Plan

Contact Person Tonya Hunskor Planned Corrective Action The Cooperative will ensure proper subrecipient monitoring is implemented. Planned Completion Date June 30, 2026.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $678,518
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $191,505
84.425 EDUCATION STABILIZATION FUND $12,100