FAC Explorer

Audit 14251

FY End
2023-06-30
Total Expended
$900,216
Findings
4
Programs
10
Organization: Isd #2856 Stephen/argyle (MN)
Year: 2023 Accepted: 2024-01-29
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10532 2023-003 Significant Deficiency Yes L
10533 2023-004 Significant Deficiency - C
586974 2023-003 Significant Deficiency Yes L
586975 2023-004 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.287 Twenty-First Century Community Learning Centers $548,646 Yes 2
84.425 Education Stabilization Fund $94,000 - 0
84.358 Rural Education $33,514 - 0
10.553 School Breakfast Program $26,339 - 0
84.010 Title I Grants to Local Educational Agencies $25,836 - 0
32.009 Emergency Connectivity Fund Program $23,230 - 0
10.555 National School Lunch Program $17,875 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.367 Improving Teacher Quality State Grants $5,224 - 0
84.048 Career and Technical Education -- Basic Grants to States $2,671 - 0

Contacts

Name Title Type
ECJ2SJ2BGPN5 Drew Kjono Auditee
2184783314 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Basis of Presentation Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule includes the federal award activity of Independent School District No. 2856 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 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Independent School District No. 2856, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 2856.
Title: Note 4 Commodity Distribution Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Note 5 Pass-Through Entities Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All pass-through entities listed on the previous page use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: Note 6 Subreceipients Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended June 30, 2023, the District did not pass any federal money to subrecipients.

Finding Details

Finding 2023-003
Federal Program: Twenty-First Century Community Learning Centers (AL 84.287); Reporting Criteria: Uniform Guidance requires all reports to be accurate. We noted during report testing that 1 of the 2 reports tested, the amount listed on the report submitted for reimbursement did not agree to the supporting documentation. Condition: There were 5 reports required to be submitted in FY23 for reimbursement. We selected 2 reports to test accuracy and we noted 1 of these reports that the supporting documentation was not accurate and contained expenditures that were not grant expenditures. Questioned Costs: N/A Context: Two reports were submitted from a population of five. The sample was not statistically valid. Effect: The District submitted a report that did not contain only grant expenditures. Cause: The District does not have controls in place to ensure all reports are submitted accurately. Repeat Finding: Yes. Prior Year Finding 2022-003. Recommendation: When reviewing reimbursement reports, prior to submission, the District should compare the report to the supporting documentation and not a summary report. Views of Responsible Officials: The Districts agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program: Twenty-First Century Community Learning Centers (AL 84.287); Cash Management Criteria: Cash management requires all expenditures that are being submitted for reimbursement to be actual grant expenditures. Condition: There were 5 reports required to be submitted in FY23 for reimbursement. We selected 2 reports to test accuracy and we noted 1 of these reports that the supporting documentation was not accurate and contained expenditures that were not grant expenditures. These expenditures were listed when submitted and the District received grant dollars for non-grant expenditures. Questioned Costs: None. Context: Two reports were submitted from a population of five. The sample was not statistically valid. Effect: The District submitted a reimbursement report for more than they should be reimbursed for. Cause: The District does not have controls in place to ensure all reports are submitted accurately. Repeat Finding: No. Recommendation: The District should implement controls to ensure all reports submitted for reimbursement, only contain actual grant expenditures. Views of Responsible Officials: The Districts agrees with the recommendation and will review its policies and procedures.
Finding 2023-003
Federal Program: Twenty-First Century Community Learning Centers (AL 84.287); Reporting Criteria: Uniform Guidance requires all reports to be accurate. We noted during report testing that 1 of the 2 reports tested, the amount listed on the report submitted for reimbursement did not agree to the supporting documentation. Condition: There were 5 reports required to be submitted in FY23 for reimbursement. We selected 2 reports to test accuracy and we noted 1 of these reports that the supporting documentation was not accurate and contained expenditures that were not grant expenditures. Questioned Costs: N/A Context: Two reports were submitted from a population of five. The sample was not statistically valid. Effect: The District submitted a report that did not contain only grant expenditures. Cause: The District does not have controls in place to ensure all reports are submitted accurately. Repeat Finding: Yes. Prior Year Finding 2022-003. Recommendation: When reviewing reimbursement reports, prior to submission, the District should compare the report to the supporting documentation and not a summary report. Views of Responsible Officials: The Districts agrees with the recommendation and will review its policies and procedures.
Finding 2023-004
Federal Program: Twenty-First Century Community Learning Centers (AL 84.287); Cash Management Criteria: Cash management requires all expenditures that are being submitted for reimbursement to be actual grant expenditures. Condition: There were 5 reports required to be submitted in FY23 for reimbursement. We selected 2 reports to test accuracy and we noted 1 of these reports that the supporting documentation was not accurate and contained expenditures that were not grant expenditures. These expenditures were listed when submitted and the District received grant dollars for non-grant expenditures. Questioned Costs: None. Context: Two reports were submitted from a population of five. The sample was not statistically valid. Effect: The District submitted a reimbursement report for more than they should be reimbursed for. Cause: The District does not have controls in place to ensure all reports are submitted accurately. Repeat Finding: No. Recommendation: The District should implement controls to ensure all reports submitted for reimbursement, only contain actual grant expenditures. Views of Responsible Officials: The Districts agrees with the recommendation and will review its policies and procedures.