Finding Text
Documentation and Internal Controls over Disbursements
Finding Type. Immaterial Noncompliance; Material Weakness in Internal Control over
Compliance (Allowable Costs/Cost Principles)
Federal programs
U.S. Department of Agriculture ‐
• Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through MDE; All
project numbers
U.S. Department of Education:
• Education Stabilization Fund (ALN 84.425); Passed through MDE; All project numbers
Criteria. The Uniform Guidance requires the Academy to establish internal controls over
disbursements related to the compliance requirements applicable to allowable costs/cost
provisions. The Academy's policies require an independent review of expenditures.
Condition. Evidence of an independent review was not documented on our disbursements selected
for testing.
Cause. This condition appears to be the result of the Academy not adhering to established internal
control policies and procedures.
Effect. The Academy is at increased risk of unallowable costs being charged to federal programs
without being detected by its internal controls.
Questioned Costs. No costs have been questioned as a result of this finding.
Recommendation. We recommend the Academy follow its internal control policies and
procedures that require independent review of all disbursement transactions.