Finding 7277 (2023-001)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-01-04
Audit: 9447
Auditor: Abdo LLP

AI Summary

  • Core Issue: Employee credit card transactions were missing from monthly Board packets, leading to a lack of oversight.
  • Impacted Requirements: This omission violates the Uniform Guidance, which mandates internal controls over expenditures.
  • Recommended Follow-Up: Ensure the bills report is reviewed before each meeting to include all expenses, including credit card purchases.

Finding Text

U.S. Department of Education Passed through State of Minnesota Title I Grants to Local Education Agencies Activities Allowed or Unallowed and Allowable Cost/Cost Principles Deficiency in Internal Control over Compliance Employee Credit Card Transactions Condition: During our audit, it came to our attention that employee credit card transactions were not included in monthly Board packets. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Cause: The report of all Cooperative disbursements that is given to the Board at each meeting did not include employee credit card transactions. Effect: The Board is unable to review employee credit card purchases thus increasing the risk of improper purchases. Recommendation: We recommend that the bills report be reviewed before every meeting to ensure all bills, EFT’s, and credit card purchases are included. Management Response: The Cooperative corrected this deficiency in February of fiscal year 2023.

Corrective Action Plan

1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: Management is aware of the condition and has taken the proper steps to ensure compliance in the future. 3. Official Responsible for Ensuring CAP: Tegan Gillund, Director of Operations, is the official responsible for ensuring corrective action. 4. Planned Completion Date for CAP: June 30, 2024. 5. Plan to Monitor Completion of CAP: The report that is generated each month to report expenditures to the Board will now be monitored each month by the accounting staff and Board finance committee to ensure all transactions are included in the report.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 7278 2023-002
    Significant Deficiency
  • 583719 2023-001
    Significant Deficiency Repeat
  • 583720 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.20M
84.027 Special Education_grants to States American Rescue Plan (arp) $1.14M
84.048 Career and Technical Education -- Basic Grants to States $662,413
84.173 Special Education_preschool Grants $335,948
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $324,943
84.411 Education Innovation Research $302,049
84.027 Special Education_grants to States $268,221
84.367 Supporting Effective Instruction State Grants $166,400
84.181 Special Education-Grants for Infants and Families $143,306
84.027 Special Education_grants to States American Rescue Plan (arp) Coordinated Early Invention Services $130,016
84.173 American Rescue Plan (arp) Preschool Grants for Children with Disabilities $95,277
84.181 Regional Ieic Grant for Children Ages Birth to 2 $40,641
32.009 Emergency Connectivity Fund Program $36,750
84.184 School Safety National Activities $2,886
84.425 Education Stabilization Fund $1,746