Finding 943298 (2022-009)

2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. 2022-009 – Allowable Costs/Cost Principles Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425U210045, 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425U210045 Award Period: July 1, 2021 – September 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or Specific Requirement: The School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements. Condition: During our testing of a sample of credit card transactions charged to the grant we noted not all transactions were supported by properly approved documentation. Context: Of a sample of 18 general disbursement charged to the grant we noted 12 credit card transactions without proper approval. It was noted that while the board does receive a listing of monthly credit card transactions, it would be possible for an unallowable cost to be approved at that level of review. Credit card transactions should be reviewed and approved by someone with the skillset to catch any errors. Questioned Costs: None. Cause: The School believed that the review at the board level was sufficient. Effect: The School could charge an unallowable cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the School has a proper approval and documentation in great enough detail for the indeed credit card transactions. Such as having a single board member reviewing the transactions in detail and then getting approval from all board members. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.