Finding Text
Federal Program - Education Stabilization Fund (84.425) Period of Performance. Criteria - The District is required to submit a budget to the Minnesota Department of Education (MDE) prior to spending the Education Stabilization Grants. Condition - The budget for three grants were submitted and approved under the FY 2021 award, but the expenditures were to be incurred in FY 2022 award. The District received $588,257 on 12/1/21 and the District returned the award to the MDE on 8/10/22. The District also received $261,930 on 12/22/21, of which the District returned $113,627 on 7/13/22 because the District was not able to receive the bus in FY 2022. $148,303 was also returned on 9/22/22 for being entered into the incorrect fiscal year. Questioned Costs - None. Context - The District entered the budget and the expenditures in FY 2021, but the budget and expenditures should have been reported in FY 2022. Also, the District did not receive the bus, so there was no expenditure to report. Cause - Oversight by staff. Effect - The District received the grant award under the wrong year, so the award was returned to MDE. Repeat finding - No. Recommendation - We recommend the District implement procedures to ensure the budget and expenditures are reported in the correct year, and the expenditures are only drawn once the District has incurred the expenditures. Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation and will review its policies and procedures.