Audit 13606

FY End
2023-06-30
Total Expended
$1.97M
Findings
12
Programs
13
Organization: Rockford Area Public Schools (MN)
Year: 2023 Accepted: 2024-01-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
9975 2023-005 Significant Deficiency - N
9976 2023-005 Significant Deficiency - N
9977 2023-006 Significant Deficiency - L
9978 2023-006 Significant Deficiency - L
9979 2023-007 Significant Deficiency - B
9980 2023-007 Significant Deficiency - B
586417 2023-005 Significant Deficiency - N
586418 2023-005 Significant Deficiency - N
586419 2023-006 Significant Deficiency - L
586420 2023-006 Significant Deficiency - L
586421 2023-007 Significant Deficiency - B
586422 2023-007 Significant Deficiency - B

Programs

Contacts

Name Title Type
TASZJVZFN8S1 Mike McNulty Auditee
7634777511 Ryan Schmidt Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein contain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District did not use an indirect cost rate when calculating federal expenditures. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Independent School District No. 883 (the District) under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of Independent School District No. 883, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 883.
Title: INVENTORY Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein contain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District did not use an indirect cost rate when calculating federal expenditures. Nonmonetary assistance is reported in this schedule at the fair market value of commodities received and disbursed for the USDA National School Lunch Program Commodities (ALN # 10.555). Revenue and expenditures are recorded when commodities are received.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein contain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District did not use an indirect cost rate when calculating federal expenditures. The District did not pass any federal funds to subrecipients during the year ended June 30, 2023.
Title: PASS-THROUGH IDENTIFIER Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein contain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District did not use an indirect cost rate when calculating federal expenditures. The District's pass-through identifying numbers assigned by each pass-through entity above are unknown.

Finding Details

Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: During the annual verification process, the District failed to properly evaluate the eligibility of a selected application based on household income records provided. Criteria: By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that have been approved for free and reduced price meals. The District must also make appropriate changes to eligibility statuses and, if applicable, properly conduct a second review of applications. Cause: One application selected for verification was evaluated using a household’s net income rather than gross income, resulting in the household incorrectly receiving a reduced eligibility status for the 2022-2023 school year. Effect: The failure to properly evaluate income verifications and make the appropriate changes to eligibility statuses is indicative of a lack of controls over compliance with the provision of the Federal program. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management thoroughly evaluate verified applications and household income records to ensure the information on the applications are accurate and the resulting free and reduced price eligibility statuses are appropriate. Additional training for employees involved in the process may be warranted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: During the annual verification process, the District failed to properly evaluate the eligibility of a selected application based on household income records provided. Criteria: By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that have been approved for free and reduced price meals. The District must also make appropriate changes to eligibility statuses and, if applicable, properly conduct a second review of applications. Cause: One application selected for verification was evaluated using a household’s net income rather than gross income, resulting in the household incorrectly receiving a reduced eligibility status for the 2022-2023 school year. Effect: The failure to properly evaluate income verifications and make the appropriate changes to eligibility statuses is indicative of a lack of controls over compliance with the provision of the Federal program. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management thoroughly evaluate verified applications and household income records to ensure the information on the applications are accurate and the resulting free and reduced price eligibility statuses are appropriate. Additional training for employees involved in the process may be warranted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served to students and how many of these were free or reduced. Cause: The District included adult meals served in their monthly CLiCS submission to the State. Adult meals are not eligible for State or Federal reimbursement. Effect: The failure to exclude adult meals from the reimbursable student meal counts reported to the State resulted in the District being reimbursed for ineligible meals. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served to students and how many of these were free or reduced. Cause: The District included adult meals served in their monthly CLiCS submission to the State. Adult meals are not eligible for State or Federal reimbursement. Effect: The failure to exclude adult meals from the reimbursable student meal counts reported to the State resulted in the District being reimbursed for ineligible meals. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: Education Stabilization Fund (ALN 84.425) Condition: The District failed to prepare and retain sufficient documentation supporting salary and wage expenditures funded by ESSER aid. Criteria: The District is required to accurately record and retain support, including time distribution records, for personnel expenditures being funded via the Education Stabilization Fund (ESF) program. Such documentation should clearly identify the specific employees whose compensation was financed via the ESF program, including the exact amount of such expenditures for each employee. Cause: The District has an inadequate audit trail of salary and wage documentation for expenditures applied to the ESF program during the current fiscal year. Effect: The failure to accurately prepare and retain documentation supporting salary and wage expenditures, including time distribution records, could result in ineligible expenditures being applied to the program. Questioned Costs: Unable to determine due to a lack of documentation. However, projected to be below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures to ensure proper documentation is retained supporting all salary and wage expenditures incurred and applied to the ESF Program. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: Education Stabilization Fund (ALN 84.425) Condition: The District failed to prepare and retain sufficient documentation supporting salary and wage expenditures funded by ESSER aid. Criteria: The District is required to accurately record and retain support, including time distribution records, for personnel expenditures being funded via the Education Stabilization Fund (ESF) program. Such documentation should clearly identify the specific employees whose compensation was financed via the ESF program, including the exact amount of such expenditures for each employee. Cause: The District has an inadequate audit trail of salary and wage documentation for expenditures applied to the ESF program during the current fiscal year. Effect: The failure to accurately prepare and retain documentation supporting salary and wage expenditures, including time distribution records, could result in ineligible expenditures being applied to the program. Questioned Costs: Unable to determine due to a lack of documentation. However, projected to be below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures to ensure proper documentation is retained supporting all salary and wage expenditures incurred and applied to the ESF Program. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: During the annual verification process, the District failed to properly evaluate the eligibility of a selected application based on household income records provided. Criteria: By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that have been approved for free and reduced price meals. The District must also make appropriate changes to eligibility statuses and, if applicable, properly conduct a second review of applications. Cause: One application selected for verification was evaluated using a household’s net income rather than gross income, resulting in the household incorrectly receiving a reduced eligibility status for the 2022-2023 school year. Effect: The failure to properly evaluate income verifications and make the appropriate changes to eligibility statuses is indicative of a lack of controls over compliance with the provision of the Federal program. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management thoroughly evaluate verified applications and household income records to ensure the information on the applications are accurate and the resulting free and reduced price eligibility statuses are appropriate. Additional training for employees involved in the process may be warranted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: During the annual verification process, the District failed to properly evaluate the eligibility of a selected application based on household income records provided. Criteria: By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that have been approved for free and reduced price meals. The District must also make appropriate changes to eligibility statuses and, if applicable, properly conduct a second review of applications. Cause: One application selected for verification was evaluated using a household’s net income rather than gross income, resulting in the household incorrectly receiving a reduced eligibility status for the 2022-2023 school year. Effect: The failure to properly evaluate income verifications and make the appropriate changes to eligibility statuses is indicative of a lack of controls over compliance with the provision of the Federal program. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management thoroughly evaluate verified applications and household income records to ensure the information on the applications are accurate and the resulting free and reduced price eligibility statuses are appropriate. Additional training for employees involved in the process may be warranted. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served to students and how many of these were free or reduced. Cause: The District included adult meals served in their monthly CLiCS submission to the State. Adult meals are not eligible for State or Federal reimbursement. Effect: The failure to exclude adult meals from the reimbursable student meal counts reported to the State resulted in the District being reimbursed for ineligible meals. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served to students and how many of these were free or reduced. Cause: The District included adult meals served in their monthly CLiCS submission to the State. Adult meals are not eligible for State or Federal reimbursement. Effect: The failure to exclude adult meals from the reimbursable student meal counts reported to the State resulted in the District being reimbursed for ineligible meals. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: Education Stabilization Fund (ALN 84.425) Condition: The District failed to prepare and retain sufficient documentation supporting salary and wage expenditures funded by ESSER aid. Criteria: The District is required to accurately record and retain support, including time distribution records, for personnel expenditures being funded via the Education Stabilization Fund (ESF) program. Such documentation should clearly identify the specific employees whose compensation was financed via the ESF program, including the exact amount of such expenditures for each employee. Cause: The District has an inadequate audit trail of salary and wage documentation for expenditures applied to the ESF program during the current fiscal year. Effect: The failure to accurately prepare and retain documentation supporting salary and wage expenditures, including time distribution records, could result in ineligible expenditures being applied to the program. Questioned Costs: Unable to determine due to a lack of documentation. However, projected to be below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures to ensure proper documentation is retained supporting all salary and wage expenditures incurred and applied to the ESF Program. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Federal Program: Education Stabilization Fund (ALN 84.425) Condition: The District failed to prepare and retain sufficient documentation supporting salary and wage expenditures funded by ESSER aid. Criteria: The District is required to accurately record and retain support, including time distribution records, for personnel expenditures being funded via the Education Stabilization Fund (ESF) program. Such documentation should clearly identify the specific employees whose compensation was financed via the ESF program, including the exact amount of such expenditures for each employee. Cause: The District has an inadequate audit trail of salary and wage documentation for expenditures applied to the ESF program during the current fiscal year. Effect: The failure to accurately prepare and retain documentation supporting salary and wage expenditures, including time distribution records, could result in ineligible expenditures being applied to the program. Questioned Costs: Unable to determine due to a lack of documentation. However, projected to be below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District evaluate current procedures to ensure proper documentation is retained supporting all salary and wage expenditures incurred and applied to the ESF Program. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.