Finding Text
of Agriculture, Passed through Minnesota Department of Education
Federal Financial Assistance Listing/CFDA Number 10.553/10.555
Child Nutrition Cluster
Activities Allowed or Unallowed; Allowable Costs and Cost Principles
Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are
properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i).
Condition – During the course of our engagement, we noted ten instances where documentation of changes to
contract wage rates or evidence of approved timesheets were not maintained.
Cause – The District does not have an internal control system designed to review and maintain documentation
for expenditures, including payroll transactions.
Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal
funds and non‐compliance with the provisions of applicable grant requirements.
Questioned Costs – $8,419
Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for
testing, which accounted for $35,327 of $525,590 of federal program expenditures.
Repeat Finding from Prior Year(s) – Yes, 2022‐004
Recommendation – The District should review internal control procedures to ensure federal expenditures are
being properly reviewed for unallowable costs and activities. Supporting documentation should then be
maintained once the review is documented and performed.
Views of Responsible Officials – There is no disagreement with the audit finding.