Finding Text
2023-002 – 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: S425D200045, 2023
Pass-Through Agency: Minnesota Department of Education
Pass-Through Numbers: S425D200045
Award Period: July 1, 2022 – September 30, 2023
Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters
Criteria or Specific Requirement: Per 2 CFR 200.303 and 2 CFR Part 200.403(f), the School should have controls in place to ensure compliance with Allowable Costs/Cost Principles requirements.
Condition: During our testing of a sample of payroll transactions charged to the grant we noted there was no documentation of the review and approval for payroll transactions that were coded to the program and the time and effort documentation for it.
Context: It was identified that while the school has some supporting documentation for amounts by employee coded to the grant, there was no further documentation with additional information of the review and approval for how those amounts were allocated to the grant.
Questioned Costs: Unknown
Cause: The School was unable to locate any specific documentation of reviews and approvals for the expenses charged to the program.
Effect: The School could charge an unallowable cost to the grant.
Repeat Finding: This is not a repeat finding.
Recommendation: CLA recommends the School ensures it documents the underlying support for how allowable payroll expenditures were charged to the program along with approval of that determination.
Views of Responsible Officials: There is no disagreement with the audit finding.