FAC Explorer

Audit 16347

FY End
2022-06-30
Total Expended
$1.04M
Findings
12
Programs
14
Organization: Independent School District No. 696 (MN)
Year: 2022 Accepted: 2023-01-16
Auditor: Walker Giroux & Hahne LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12207 2022-001 Significant Deficiency Yes P
12208 2022-001 Significant Deficiency Yes P
12209 2022-001 Significant Deficiency Yes P
12210 2022-001 Significant Deficiency Yes P
12211 2022-001 Significant Deficiency Yes P
12212 2022-001 Significant Deficiency Yes P
588649 2022-001 Significant Deficiency Yes P
588650 2022-001 Significant Deficiency Yes P
588651 2022-001 Significant Deficiency Yes P
588652 2022-001 Significant Deficiency Yes P
588653 2022-001 Significant Deficiency Yes P
588654 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $106,063 - 0
84.027 Special Education_grants to States $66,046 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $53,242 - 0
10.553 School Breakfast Program $49,830 Yes 1
84.425 Education Stabilization Fund $40,087 Yes 1
93.324 State Health Insurance Assistance Program $36,217 - 0
84.358 Rural Education $34,437 - 0
10.555 National School Lunch Program $29,016 Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $19,858 - 0
10.559 Summer Food Service Program for Children $17,561 Yes 1
84.367 Improving Teacher Quality State Grants $14,101 - 0
84.060 Indian Education_grants to Local Educational Agencies $12,697 - 0
84.424 Student Support and Academic Enrichment Program $9,685 - 0
84.173 Special Education_preschool Grants $2,390 - 0

Contacts

Name Title Type
DGHAA2K711A7 Spencer Aune Auditee
2183656166 Devin Ceglar Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - COMMODITY DISTRIBUTION Accounting Policies: NOTE A - BASIS OF PRESENTATIONN The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Independent School District No. 696, Ely, Minnesota, under programs of the federal government for the year ended June 30, 2022. 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. 696, Ely, Minnesota, it is not intended to and does not present the financial position or changes in net position of Independent School District No.696, Ely, Minnesota. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles 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 deminimis cost rate. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Independent School District No. 696, Ely, Minnesota, has elected not to use the 10 percent deminimis indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received. At June 30, 2022, the District had food commodities totaling $8,865 in inventory.
Title: NOTE D - RECONCILIATION OF FEDERAL DOLLARS REPORTED ON SCHEDULE OF Accounting Policies: NOTE A - BASIS OF PRESENTATIONN The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Independent School District No. 696, Ely, Minnesota, under programs of the federal government for the year ended June 30, 2022. 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. 696, Ely, Minnesota, it is not intended to and does not present the financial position or changes in net position of Independent School District No.696, Ely, Minnesota. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles 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 deminimis cost rate. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Independent School District No. 696, Ely, Minnesota, has elected not to use the 10 percent deminimis indirect cost rate as allowed under the Uniform Guidance. EXPENDITURES OF FEDERAL AWARDS TO FEDERAL DOLLARS REPORTEDIN UFARS Independent School District No. 696, Ely, Minnesota receives rebates for interest payments received on some of their bonds. This rebate is received from a federal source, but is appropriately not reported on the Schedule of Expenditures of Federal Awards. The amount reported as revenue in UFARS for the federal interest rebate was $93,139 for the year ended June 30, 2022. Amounts Total federal awards reported on schedule of expenditures of federal awards $1,036,215 Federal interest rebate 93,139 Total reported as revenue from federal sources on fund financials $1,129,354
Title: NOTE E - PASS-THROUGH GRANT NUMBERS Accounting Policies: NOTE A - BASIS OF PRESENTATIONN The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Independent School District No. 696, Ely, Minnesota, under programs of the federal government for the year ended June 30, 2022. 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. 696, Ely, Minnesota, it is not intended to and does not present the financial position or changes in net position of Independent School District No.696, Ely, Minnesota. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles 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 deminimis cost rate. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Independent School District No. 696, Ely, Minnesota, has elected not to use the 10 percent deminimis indirect cost rate as allowed under the Uniform Guidance. Pass-through grant numbers were not assigned by the pass-through agencies.

Finding Details

Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.
Finding 2022-001
2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the District's business office, the segregation of accounting functions necessary to ensure adequate internal control is not possible. Effect Because of the weakness in segregation of duties, the District has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Auditor Recommendations Officials and management of the District should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Business Manager will continue to monitor all transactions and the District's administration will structure the duties of office and school personnel to help ensure as much segregation of duties as possible within the District's staffing limitations and funding constraints.