Audit 18413

FY End
2022-06-30
Total Expended
$1.16M
Findings
26
Programs
12
Year: 2022 Accepted: 2022-11-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22631 2022-004 Material Weakness - I
22632 2022-005 Significant Deficiency - L
22633 2022-004 Material Weakness - I
22634 2022-005 Significant Deficiency - L
22635 2022-004 Material Weakness - I
22636 2022-005 Significant Deficiency - L
22637 2022-004 Material Weakness - I
22638 2022-005 Significant Deficiency - L
22639 2022-004 Material Weakness - I
22640 2022-005 Significant Deficiency - L
22641 2022-006 Material Weakness - N
22642 2022-006 Material Weakness - N
22643 2022-006 Material Weakness - N
599073 2022-004 Material Weakness - I
599074 2022-005 Significant Deficiency - L
599075 2022-004 Material Weakness - I
599076 2022-005 Significant Deficiency - L
599077 2022-004 Material Weakness - I
599078 2022-005 Significant Deficiency - L
599079 2022-004 Material Weakness - I
599080 2022-005 Significant Deficiency - L
599081 2022-004 Material Weakness - I
599082 2022-005 Significant Deficiency - L
599083 2022-006 Material Weakness - N
599084 2022-006 Material Weakness - N
599085 2022-006 Material Weakness - N

Contacts

Name Title Type
RH8WDGBKT6Z5 Kate Fernholz Auditee
3208344084 Mary L. Reedy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1GENERALThe accompanying schedule of expenditures of federal awards includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2022. The reporting entity is defined in Note 1 to the Districts financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance pass through other government agencies is included on the schedule. The District did not pass any federal award money to subrecipients during the fiscal year. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District.NOTE 2BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the Districts financial statements. 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. NOTE 3INDIRECT COST RATEThe District has not elected to use the 10% de minimis in direct costs rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-004 Procurement/Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CFR section 180.995, the District should have a policy in place to be followed to ensure they are properly procuring goods and services and have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process for suspension and debarment was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 2 of 3 vendors tested. Questioned Costs: None. Context: 2 of 3 vendors tested had no review to ensure they were not suspended or debarred. Cause: The District did not follow the process in place. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-005 Reporting Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2908-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303, the District should have a policy in place to be followed to ensure that the monthly claims reimbursement reports were accurate. Condition: During reporting testing, it was noted that 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Questioned Costs: None. Context: 5 out of 5 months of claims reimbursements tested were not reviewed by someone other than the preparer. Cause: The District personnel did not have a policy in place for review and approval of the CLiCS reports. Effect: Lack of proper documentation of controls over claims reimbursements could result in an incorrect number of meal counts. This could ultimately result in the District being reimbursed for an incorrect amount. After review of monthly claims reimbursements, it was noted that no reports were submitted incorrectly. Repeat Finding: No. Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.
2022-006 Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program name: Education Stabilization Fund Assistance Listing Number: 84.425D and 84.425U Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C220015, S425D220045, and S425C220045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Per 2 CFR Part 176, Subpart C and 2 CFR section 200.326, the District shall include in their construction contracts subject to the wage requirements a special provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payments). Condition: During special provisions testing, it was noted that for 3 of 3 contractors tested that the required wage rate requirements were not included and the District did not require the contractors to submit certified payments. Questioned Costs: Not determinable. Context: 3 of 3 contracts tested did not follow proper wage requirements. Cause: Oversight. Effect: Lack of proper controls and noncompliance with wage rate requirements could result in the District doing business with contractors that are not paying laborer or mechanics prevailing wage rates. Repeat Finding: No. Recommendation: We recommend that the District consider any contracts for capital expenditures for applicability of Davis Bacon Act wage rate requirements prior to awarding the project and entering into the contract. If it is determined that wage rate requirements apply, the District should ensure the required provision is included in the applicable contracts and then the District also needs to require the applicable contractors to submit certified payrolls during the time of the projects. Views of Responsible Official: There is no disagreement with the finding.