Finding 2456 (2023-003)

Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable Award Period: July 1, 2022 - June 30, 2023 Type of Finding: • Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 200.430(i), the District is to maintain records for salaries and wages. This includes proper approval of the salaries and wage rates. Condition: During our testing of allowable costs/cost principles, it was noted that the District Board did not approve wage rates for certain employees. Questioned Costs: Not applicable. Context: 1 of 7 employees tested did not have their wage rate approved by the Board. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with allowable cost requirements could result in paying employees more than actually required. This could ultimately result in questioned costs. Repeat Finding: No Recommendation: We recommend the District Board approve the wage rate of all employees via contracts or separate, individual approval. Views of Responsible Official: There is no disagreement with the finding.