Finding Text
Federal Program - Education Stabilization Fund (84.425) Activities Allowed or Unallowed, Equipment and Real Property Management. Criteria - To ensure all expenditures charged to a program are allowable, the District should establish controls for approval of expenditures. In addition, the Minnesota Department of Education (MDE) requires all equipment purchases greater than $5,000 to receive preapproval of the equipment from MDE. Finally, all program expenditures should be coded to their specific finance and object codes to ensure accuracy of program expenditures. Condition - We tested 41 transactions and two of the transactions were not approved by the District. In addition, two equipment purchases greater than $5,000 did not receive pre-approval, but the equipment was approved by MDE at a later date. Budgeted expenditures in total agree with the actual expenditures, but the expenditures do not agree by object code (salary, supplies, etc.). Questioned Costs - None. Context - We tested 41 transactions and two of the transactions were not approved by the District. In addition, two equipment purchases greater than $5,000 did not receive pre-approval, but the equipment was approved by MDE at a later date. Budgeted expenditures in total agree with the actual expenditures, but the expenditures do not agree by object code (salary, supplies, etc.). Cause - Oversight by staff. Effect - There is an increased risk of unallowable costs being charged to grants. Repeat finding - No. Recommendation - We recommend the District obtain approvals prior to incurring the expenditures. The District should also report all expenditures to the correct finance and object code at the time the expenditure is incurred. Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation and will review its policies and procedures.