Finding Text
U.S. Department of Education
Passed through State of Minnesota
Title I Grants to Local Education Agencies
Activities Allowed or Unallowed and Allowable Cost/Cost Principles
Deficiency in Internal Control over Compliance
Employee Credit Card Transactions
Condition: During our audit, it came to our attention that employee credit card transactions were not included in monthly Board packets.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures.
Cause: The report of all Cooperative disbursements that is given to the Board at each meeting did not include employee credit card transactions.
Effect: The Board is unable to review employee credit card purchases thus increasing the risk of
improper purchases.
Recommendation: We recommend that the bills report be reviewed before every meeting to ensure all bills, EFT’s,
and credit card purchases are included.
Management Response:
The Cooperative corrected this deficiency in February of fiscal year 2023.