FAC Explorer

Finding 38401 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-02-06
Audit: 37169
Organization: Independent School District No. 712 (MN)
Auditor: Brady Martz & Associates

AI Summary

  • Core Issue: One purchase lacked pre-approval and one payroll transaction had incorrect wage information.
  • Impacted Requirements: The District's purchasing policy mandates approved purchase orders for non-recurring purchases and accurate wage listings in employee contracts.
  • Recommended Follow-Up: Ensure compliance with purchasing policies and implement checks to verify correct wage amounts in contracts.

Finding Text

Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Corrective Action Plan

2022-003 FINDING Contact Person ? Reggie Engebritson, Superintendent Corrective Action Plan ? The District will review and update their policies and procedures. Completion Date ? March 30, 2023

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38402 2022-004
    Significant Deficiency
  • 38403 2022-003
    Significant Deficiency
  • 38404 2022-004
    Significant Deficiency
  • 614843 2022-003
    Significant Deficiency
  • 614844 2022-004
    Significant Deficiency
  • 614845 2022-003
    Significant Deficiency
  • 614846 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $507,387
10.555 National School Lunch Program $258,906
84.010 Title I Grants to Local Educational Agencies $84,032
10.553 School Breakfast Program $77,774
84.027 Special Education_grants to States $61,396
32.009 Emergency Connectivity Fund Program $41,164
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,000
84.358 Rural Education $36,572
10.559 Summer Food Service Program for Children $28,803
84.367 Improving Teacher Quality State Grants $12,733
84.424 Student Support and Academic Enrichment Program $10,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $4,437
84.173 Special Education_preschool Grants $2,266
84.181 Special Education-Grants for Infants and Families $1,617