Finding Text
2022-004 Department of Education and Passed through State of South Dakota Department of Education Federal Financial Assistance Listing / CFDA #84.425C, 2021G-798, 03/13/2020 ? 09/30/2022 COVID-19 Education Stabilization Fund - Governor?s Emergency Education Relief (GEER) Fund Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Four instances identified in which documentation could not be provided to support a formal review and approval of the expenditures prior to payment. Cause: Documentation to support the review of expenditures prior to payment was not retained. Effect: Without documentation to support of the review and approval of disbursements, demonstrating that costs comply with laws, regulations, and other compliance requirements is difficult. Questioned Costs: None reported. Context: A non-statistical sample of 12 non-payroll transactions were selected for testing out of approximately 60 total nonpayroll transactions, accounting for approximately $135,799 of $206,855 total nonpayroll costs charged to the federal award. Repeat Finding from Prior Year: Yes, prior year finding 2021-004 Recommendation: We recommend that management retain documentation to support the review process was performed. Views of Responsible Officials: Management is in agreement.