Finding 624922 (2022-003)

Material Weakness
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2022-12-21
Audit: 53174
Organization: Isd #363 - Northome (MN)

AI Summary

  • Core Issue: The District submitted budgets for grants in FY 2021, but expenditures should have been reported in FY 2022.
  • Impacted Requirements: Grants were not utilized as intended, leading to returns of funds totaling $850,187.
  • Recommended Follow-Up: Implement procedures to ensure budgets and expenditures are reported in the correct fiscal year and only draw funds after incurring expenses.

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.

Categories

Period of Performance Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48476 2022-003
    Material Weakness
  • 48477 2022-004
    Material Weakness
  • 48478 2022-003
    Material Weakness
  • 48479 2022-004
    Material Weakness
  • 48480 2022-003
    Material Weakness
  • 48481 2022-004
    Material Weakness
  • 624918 2022-003
    Material Weakness
  • 624919 2022-004
    Material Weakness
  • 624920 2022-003
    Material Weakness
  • 624921 2022-004
    Material Weakness
  • 624923 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $184,194
32.009 Emergency Connectivity Fund Program $85,154
84.010 Title I Grants to Local Educational Agencies $77,754
10.553 School Breakfast Program $64,573
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,000
84.358 Rural Education $26,836
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,020
84.041 Impact Aid $17,981
84.425 Education Stabilization Fund $12,060
84.060 Indian Education_grants to Local Educational Agencies $11,428
84.424 Student Support and Academic Enrichment Program $10,000
84.367 Improving Teacher Quality State Grants $6,321
10.582 Fresh Fruit and Vegetable Program $4,259
84.048 Career and Technical Education -- Basic Grants to States $1,169