Community School of Excellence

Federal Agency: US Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Federal Award Identification Number and Year: S425V210045 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: S425D220045 & S425C220045 Award Period: Fiscal Year 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Equipment acquired under Federal awards should be part of inventory records that include a description (including serial number or other identification number), source, who holds title, acquisition date, cost, percentage of Federal participation in the cost, location, and condition. Condition: None of the education stabilization fund sources equipment purchases selected for testing included the source of funding or the percentage of federal participation on the cost. Most also did not list the cost. Questioned costs: $271,596 Context: The compliance issue was noted with all five equipment purchases selected for testing. Cause: The Education Stabilization Fund is still a relatively new program with compliance requirements in several compliance areas over which the School was still gaining an understanding. Therefore, the School was not aware that these specific elements had to be included in their existing inventory listings. Effect: If the School does not properly list the source of funding, the percentage of federal participation on the cost, and the cost in equipment inventory listings, it would be possible that proceeds from any disposal of federally funded equipment could then be handled improperly. Repeat Finding: No Recommendation: We recommend that the School properly list the source of funding, the percentage of federal participation on the cost, and the cost in equipment inventory listings. Views of responsible officials: There is no disagreement with the audit finding.

2022-003 Material Weakness in Internal Control over Compliance Recommendation: We recommend that the School properly list the source of funding, the percentage of federal participation on the cost, and the cost in equipment inventory listings. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: CSE will segregate federally funded equipment and document its cost. Names of the contact persons responsible for corrective action: CSE School Leadership Planned Completion date for corrective action plan: 6/30/2023