Finding Text
2024-005 Department of Agriculture, Passed through Minnesota Department of Education
Federal Financial Assistance Listing 10.553/10.555/10.559/10.582
Child Nutrition Cluster
Activities Allowed or Unallowed; Allowable Costs and Cost Principles
Material Weakness in Internal Control Over Compliance
Criteria – A good system of internal accounting control contemplates an adequate system for ensuring
documentation of expenditures, including payroll transactions, is reviewed and maintained.
Condition – During the course of our engagement, we noted instances where employees were paid for incorrect
hours.
Cause – The District does not have an internal control system designed to review and maintain documentation
for expenditures, including payroll transactions.
Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented
or detected.
Questioned Costs – None reported.
Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total
transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of
federal program expenditures.
Repeat Finding from Prior Year(s) – No
Recommendation – A thorough review and reconciliation of supporting documentation for expenditures,
including payroll transactions, should be performed before amounts are disbursed. Supporting documentation
should be maintained once review is documented and performed.
View of Responsible Officials – There are no disagreements with this finding.