Finding 25078 (2022-004)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2022-12-15
Audit: 23716
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Department of Agriculture lacks a proper internal control system for maintaining documentation on payroll and expenditure changes.
  • Impacted Requirements: Compliance with federal financial assistance guidelines, specifically regarding documentation of allowable costs.
  • Recommended Follow-Up: Implement a thorough review process for supporting documentation before disbursing funds and ensure all documentation is maintained post-review.

Finding Text

2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.

Categories

Allowable Costs / Cost Principles Material Weakness School Nutrition Programs

Other Findings in this Audit

  • 25075 2022-004
    Material Weakness
  • 25076 2022-004
    Material Weakness
  • 25077 2022-004
    Material Weakness
  • 25079 2022-005
    Material Weakness
  • 25080 2022-005
    Material Weakness
  • 601517 2022-004
    Material Weakness
  • 601518 2022-004
    Material Weakness
  • 601519 2022-004
    Material Weakness
  • 601520 2022-004
    Material Weakness
  • 601521 2022-005
    Material Weakness
  • 601522 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $359,191
10.553 School Breakfast Program $250,654
84.010 Title I Grants to Local Educational Agencies $164,357
32.009 Emergency Connectivity Fund Program $160,350
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $86,957
84.027 Special Education_grants to States $52,382
84.367 Improving Teacher Quality State Grants $28,956
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,734
10.555 National School Lunch Program $16,051
84.173 Special Education_preschool Grants $6,095
84.181 Special Education-Grants for Infants and Families $4,619