Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Education
Federal Compliance Audit

 

Financial Audit Division Report 14-09

Released March 21, 2014

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Conclusion

The Minnesota Department of Education generally complied with and had controls to ensure compliance with certain legal requirements applicable to its major federal programs for fiscal year 2013. However, the department had some internal control weaknesses and noncompliance with federal requirements, as noted in the three findings presented in this report, including two unresolved findings from the prior audit.¹

Audit Findings

• The Minnesota Department of Education did not identify and analyze its risks related to noncompliance with federal requirements. This is a repeat finding.
• The Minnesota Department of Education did not comply with federal standards for payroll cost allocations to federal programs. A portion of this is a repeat finding.
• The Minnesota Department of Education did not comply with the reporting requirements of the Federal Funding Accountability and Transparency Act.

Audit Scope

Programs material to the State of Minnesota’s federal program compliance for fiscal year 2013:

Program Title	CFDA2
Child Nutrition Cluster3	10.553, 10.555, 10.556, and 10.559
Child and Adult Care Food	10.558
Title 1 – Grants to Local Education Agencies	84.010
Special Education Cluster3	84.027 and 84.173
Improving Teacher Quality State Grants	84.367

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¹ Office of the Legislative Auditor’s Financial Audit Division Report 13-14, Minnesota Department of Education, issued June 28, 2013.
² The Catalog of Federal Domestic Assistance (CFDA) includes unique numbers assigned by the federal government to identify its programs.
³ A cluster of programs is a group of closely related programs that have similar compliance requirements and are treated as a single program.