Finding Text
2022-007 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425 Education Stabilization Fund Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted four instances where employees were not paid at the rate of pay noted in their contract, three instances of missing timesheets, and twenty-nine instances of improper approval of payroll related documentation. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions were selected for testing, which accounted for $266,276 of $614,522 of the federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.