Finding Text
Finding 2022-006 Internal Control Over Approval of Equipment Purchases Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to obtain prior approval for the purchase of equipment greater than $5,000. Criteria: Per program requirements, the District was required to obtain prior approval from the Minnesota Department of Education for any equipment (greater than $5,000) purchased via program dollars. Cause: Because the program is relatively new and the District experienced staffing turnover during the year, the District was not fully aware of the program?s requirements. Effect: The failure to obtain noted approval cause the District to not be in compliance with the program?s requirements. Context: This is a control requirement required by the Minnesota Department of Education to ensure that expenditures submitted under the program are allowable. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and implement requests for approvals as necessary. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.