Finding Text
Internal Control – Material Weakness
Federal Program Information
Funding Agency: U.S. Department of Education
Pass-Through Entity: North Dakota State Department of Public Instruction
Title: Title I Grants to Local Educational Agencies
AL Number: 84.010
Funding Agency: U.S. Department of Education
Pass-Through Entity: North Dakota State Department of Public Instruction
Pass-Through Entity: North Dakota State Department of Health and Human Services
Title: ESF
AL Number: 84.425
Criteria
A system of internal controls requires all transactions to be properly approved, in addition
expenditures should be supported by vendor invoices.
Condition
During transaction testing, we noted the following items:
Title I
Three transactions where the approver approved over their allowed threshold.
ESF
Two transactions that were supported by vendor statements instead of invoices.
Questioned Costs
N/A
Context
Title I
In a population of over 250, a sample of 40 transactions were tested of which 28 of
these were non-payroll transactions. In these 28 transactions, we noted 3 in which
the approver had approved an amount in excess of their allowed threshold.
ESF
In a population of over 250, a sample of 40 transactions were tested of which 36 of
these were non-payroll transactions. In these 36 transactions, we noted 2 of which
were supported by vendor statements.
Effect
Increased risk of charging an unallowed transaction to the program.
Cause
Management oversight.
Recommendation
We recommend the District follow their purchasing policy.
Repeat Finding
This is not a repeat finding.
Views of Responsible Officials
See corrective action plan.