Finding 37021 (2022-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-01-22

AI Summary

  • Core Issue: A $247,713 expenditure was incorrectly charged to FY 2023 instead of the appropriate period.
  • Impacted Requirements: The District lacks adequate controls to ensure all expenditures are reported in the correct period, increasing the risk of unallowable costs.
  • Recommended Follow-Up: Implement a review process for expenditure reporting and ensure compliance with the correct period for all future transactions.

Finding Text

Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Corrective Action Plan

2022-002 FINDING Contact Person ? Tim Lutz, Superintendent Corrective Action Plan ? The District should review their procedures to ensure that all expenditures are reported in the correct period. Completion Date ? December 31, 2022

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 37022 2022-002
    Material Weakness
  • 37023 2022-003
    Material Weakness
  • 37024 2022-003
    Material Weakness
  • 37025 2022-003
    Material Weakness
  • 37026 2022-003
    Material Weakness
  • 37027 2022-003
    Material Weakness
  • 37028 2022-003
    Material Weakness
  • 613463 2022-002
    Material Weakness
  • 613464 2022-002
    Material Weakness
  • 613465 2022-003
    Material Weakness
  • 613466 2022-003
    Material Weakness
  • 613467 2022-003
    Material Weakness
  • 613468 2022-003
    Material Weakness
  • 613469 2022-003
    Material Weakness
  • 613470 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $11.66M
84.010 Title I Grants to Local Educational Agencies $1.48M
84.027 Special Education_grants to States $429,890
84.060 Indian Education_grants to Local Educational Agencies $355,633
10.553 School Breakfast Program $308,073
84.367 Improving Teacher Quality State Grants $80,775
10.582 Fresh Fruit and Vegetable Program $61,674
84.424 Student Support and Academic Enrichment Program $55,324
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $51,490
21.027 Coronavirus State and Local Fiscal Recovery Funds $41,162
84.425 Education Stabilization Fund $40,183
84.358 Rural Education $31,935
84.196 Education for Homeless Children and Youth $30,000
10.555 National School Lunch Program $28,554
93.981 Improving Student Health and Academic Achievement Through Nutrition, Physical Activity and the Management of Chronic Conditions in Schools $9,681
84.173 Special Education_preschool Grants $7,770
10.559 Summer Food Service Program for Children $5,526
45.310 Grants to States $2,510
84.181 Special Education-Grants for Infants and Families $1,001