Finding Text
Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.