FAC Explorer

Finding 7541 (2023-007)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-01-05
Audit: 9837
Organization: Independent School District No. 2342 Wca Public Schools (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Journal entries for federal expenses lacked proper approval, indicating a significant internal control weakness.
  • Impacted Requirements: The District must implement documented controls to ensure accuracy in federal expense reporting.
  • Recommended Follow-Up: Assign a reviewer to oversee journal entries to enhance compliance and prevent errors.

Finding Text

C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Finding: 2023-007 Lack of Proper Review – Allowable Costs Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable. Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During cash disbursement testing, it was noted that that none of the journal entries tested had proper approval. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all federal expenses. These controls should be formally documented to ensure they have ben properly implemented. Context: No journal entries have proper approval. Effect: Lack of proper documentation of controls over allowable costs could result in errors or intentional misrepresentation of allowable federal costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District have someone review journal entries. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Lack of Proper Review – Allowable Costs Federal agency: U.S. Department of Agriculture Federal program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: We recommend the District have someone review all journal entries. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: The District will implement procedures to ensure all journal entries are properly reviewed. Name of the Contact Person Responsible for Corrective Action Plan: Paul Brownlow, Superintendent Planned Completion Date for Corrective Action Plan: June 30, 2024.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 7536 2023-006
    Material Weakness
  • 7537 2023-006
    Material Weakness
  • 7538 2023-006
    Material Weakness
  • 7539 2023-006
    Material Weakness
  • 7540 2023-006
    Material Weakness
  • 7542 2023-007
    Material Weakness
  • 583978 2023-006
    Material Weakness
  • 583979 2023-006
    Material Weakness
  • 583980 2023-006
    Material Weakness
  • 583981 2023-006
    Material Weakness
  • 583982 2023-006
    Material Weakness
  • 583983 2023-007
    Material Weakness
  • 583984 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $150,868
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,072
10.553 School Breakfast Program $38,567
10.555 National School Lunch Program $30,263
84.367 Improving Teacher Quality State Grants $24,333
84.424 Student Support and Academic Enrichment Program $10,447
84.425 Education Stabilization Fund $10,375
21.019 Coronavirus Relief Fund $628
10.556 Special Milk Program for Children $424