Finding 7278 (2023-002)

U.S. Department of Education Passed through State of Minnesota Career and Technical Education Reporting Deficiency in Internal Control over Compliance Internal Controls Over Federal Program Reporting Condition: During our audit, it came to our attention that reports submitted as part of the federal CTE program were not being reviewed by a party other than the preparer. 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 reporting. Cause: There was no approver on quarterly reports other than the preparer sign off. Effect: There is not sufficient oversight of federal reports. Recommendation: We recommend that someone other than the preparer review the CTE quarterly reports for accuracy. Management Response: Management had a turnover in staff and was unable to fill the Accounting Supervisor/Specialist position which involved preparing and submitting by the same staff member. The position was filled as of December 4, 2023 and that individual will be preparing the reports and reviewed by the Director of Finance.