FAC Explorer

Audit 21879

FY End
2022-06-30
Total Expended
$1.07M
Findings
10
Programs
21
Organization: Independent School District 173 (MN)
Year: 2022 Accepted: 2022-12-12
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25182 2022-004 Material Weakness Yes AB
25183 2022-004 Material Weakness Yes AB
25184 2022-004 Material Weakness Yes AB
25185 2022-004 Material Weakness Yes AB
25186 2022-004 Material Weakness Yes AB
601624 2022-004 Material Weakness Yes AB
601625 2022-004 Material Weakness Yes AB
601626 2022-004 Material Weakness Yes AB
601627 2022-004 Material Weakness Yes AB
601628 2022-004 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $338,592 Yes 1
84.425 Covid-19 - Elementary and Secondary School Emergency Releif (esser I and Ii) $206,532 - 0
84.010 Title I Grants to Local Educational Agencies $132,076 - 0
10.553 School Breakfast Program $98,542 Yes 1
84.425 Covid-19 - Elementary and Secondary School Emergency Relief (esser Iii) - Formula Allocation $38,302 - 0
84.358 Rural Education Achievement Program (reap) $35,908 - 0
84.425 Covid-19 - Elementary and Secondary School Emergency Relief (esser Iii) - Learning Loss $32,698 - 0
84.027 Covid - 19 - Special Education Grants to States (arpa) $30,576 - 0
10.555 Noncash - Commodity Supplemental Food Program $27,722 Yes 1
10.559 Summer Food Service Program for Children $24,565 Yes 1
84.367 Supporting Effective Institution State Grants $21,531 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds - Comp Reporting Extension $21,083 - 0
84.027 Special Education_grants to States $14,963 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,343 - 0
84.365 English Language Acquisition State Grants $10,051 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.425 Covid-19 - Governor's Emergency Education Relief (geer I and Ii) $7,100 - 0
10.555 Free and Reduced $6,111 Yes 1
84.173 Covid -19 - Special Education_preschool Grants (arpa) $2,493 - 0
84.002 Adult Education - Basic Grants to States $2,391 - 0
84.173 Special Education_preschool Grants $1,090 - 0

Contacts

Name Title Type
E214RUDAJJR9 Kim Naas Auditee
5074272323 Tom Olinger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principals for Non-Profit-Organizations, or the cost principals contained in Title 2 U.S. Cost of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2022, the District did not elect to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Independent School District No. 173, Mountain Lake, Minnesota, (the District) for the year ended June 30, 2022. The District's reporting entity is defined in Note 1A to the District's financial statements. The information in this schedule is presented in accordance with the requirement of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. All Federal awards received directly from Federal agencies as well as Federal awards passed through other government agencies are included on the schedule.
Title: Pass-through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principals for Non-Profit-Organizations, or the cost principals contained in Title 2 U.S. Cost of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2022, the District did not elect to use the 10% de minimis indirect cost rate. Pass-through entity identifying numbers, if any, are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principals for Non-Profit-Organizations, or the cost principals contained in Title 2 U.S. Cost of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2022, the District did not elect to use the 10% de minimis indirect cost rate. No federal expenditures presented in this schedule were provided to subrecipients.

Finding Details

Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.
Finding 2022-004
2022-004 U.S. Department of Treasury Passed through State of Minnesota Child Nutrition Cluster 10.555/10.559 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over expenditures in accordance with the District?s procurement policies and procedures. There were several expenditures that did not have proper purchase order signatures or received the proper quotes. Cause: The District did not have adequate internal controls to ensure control procedures over expenditures in are being followed accordance with the District?s procurement policies and procedures. Effect: Internal controls procedures were not properly performed over expenditures. Questioned Costs: None. Context/Sampling: Sampling was used. We examined procedures performed by the District noting a lack of controls over expenditures. Recommendation: We recommend the District enhance internal controls to ensure procurement policies are being met. Management Response: Management agrees with this finding.