Finding Text
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.