Finding 576803 (2023-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2023-10-17
Audit: 736
Organization: Sebeka Public Schools (MN)

AI Summary

  • Core Issue: Lack of approval for a journal entry in federal expenditures.
  • Impacted Requirements: Federal guidelines require controls for approving expenditures.
  • Recommended Follow-Up: Implement a procedure for reviewing all journal entries to mitigate risks.

Finding Text

Federal Program: COVID-19 Education Stabilization Fund Under The Coronavirus Aid, Relief, and Economic Security Act (AL 84.425 U/D) Activities Allowed or Unallowed; Allowable Costs/Cost Principles Criteria: To ensure federal expenditures are allowable, an entity should establish controls for approval of federal expenditures. Condition: We tested a sample of 40 disbursements. This sample consisted of 24 payroll disbursements, 15 non-payroll disbursements, and 1 journal entry. We noted no review or approval of the journal entry. Questioned Costs: None. Context: Not all the expenditures charged to the federal program had evidence of approval. Cause: Oversight by the District's staff. Effect: The District has increased risk of submitting ineligible federal expenses for reimbursement. Repeat Finding: No. Recommendation: The District should establish a procedure for review of journal entries. Views of Responsible Officials and Planned Corrective Action: The District agrees with the recommendation and has implemented a procedure for review of journal entries.

Categories

Allowable Costs / Cost Principles Cash Management Eligibility

Other Findings in this Audit

  • 361 2023-003
    Significant Deficiency
  • 362 2023-003
    Significant Deficiency
  • 576804 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $178,684
84.010 Title I Grants to Local Educational Agencies $178,064
10.553 School Breakfast Program $69,481
84.358 Rural Education $28,689
21.027 Coronavirus State and Local Fiscal Recovery Funds $27,900
10.555 National School Lunch Program $26,821
84.027 Special Education_grants to States $25,567
84.367 Improving Teacher Quality State Grants $25,052
84.424 Student Support and Academic Enrichment Program $12,500
10.559 Summer Food Service Program for Children $12,364
84.048 Career and Technical Education -- Basic Grants to States $9,685
10.558 Child and Adult Care Food Program $9,141