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.