Finding Text
Department of Education, Passed through Minnesota Department of Education
Federal Financial Assistance Listing 84.027/84.173
Special Education Cluster
Period of Performance
Significant Deficiency in Internal Control over Compliance
Criteria: A good system of internal control includes an adequate system for ensuring all expenditures are
properly recorded in the applicable federal grant period in accordance with 2 CFR 200.309.
Condition: In our testing of period of performance, we noted one instance of a fiscal year 2023 expenditure
recorded during fiscal year 2024 and therefore not allowable under the terms of the grant.
Cause: Procedures are not in place to adequately identify period of performance requirements.
Effect: A lack of internal controls over period of performance could result in recording expenditures in the
improper grant period resulting in non-compliance with the provisions of applicable grant requirements.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was 40 of 255 transactions. and included
$525,686 of $828,578 federal awards.
Repeat Finding from Prior Year: No
Recommendation: RAED should review internal control procedures to ensure federal expenditures are being
properly recorded in appropriate grant periods.
Views of Responsible Officials: There is no disagreement with the audit finding.