Audit 23716

FY End
2022-06-30
Total Expended
$2.67M
Findings
12
Programs
11
Year: 2022 Accepted: 2022-12-15
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
25075 2022-004 Material Weakness - AB
25076 2022-004 Material Weakness - AB
25077 2022-004 Material Weakness - AB
25078 2022-004 Material Weakness - AB
25079 2022-005 Material Weakness - AB
25080 2022-005 Material Weakness - AB
601517 2022-004 Material Weakness - AB
601518 2022-004 Material Weakness - AB
601519 2022-004 Material Weakness - AB
601520 2022-004 Material Weakness - AB
601521 2022-005 Material Weakness - AB
601522 2022-005 Material Weakness - AB

Contacts

Name Title Type
PGLWMX88JTC7 Marcus Askvig Auditee
2184776938 Derek Flanagan Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Whenapplicable, 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. No federal financialassistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof the District under programs of the federal government for the year ended June 30, 2022. The information ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative 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 anddoes not present the financial position or changes in fund balance or net position of the District.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Whenapplicable, 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. No federal financialassistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of commodities received anddisbursed. At June 30, 2022 the District had food commodities totaling $31,555 in inventory.

Finding Details

2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-005 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425 Education Stabilization Fund Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted two instances where employees were not paid at the rate of pay noted in their contract. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 23 transactions out of 36 total transactions were selected for testing, which accounted for $741,540 of $759,829 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-005 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425 Education Stabilization Fund Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted two instances where employees were not paid at the rate of pay noted in their contract. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 23 transactions out of 36 total transactions were selected for testing, which accounted for $741,540 of $759,829 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-004 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted six instances where documentation of changes to contract wage rates was not maintained. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 40 transactions out of 1,417 total transactions were selected for testing, which accounted for $41,288 of $1,069,276 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-005 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425 Education Stabilization Fund Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted two instances where employees were not paid at the rate of pay noted in their contract. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 23 transactions out of 36 total transactions were selected for testing, which accounted for $741,540 of $759,829 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.
2022-005 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425 Education Stabilization Fund Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for ensuring that adequate documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition ? During the course of our engagement, we noted two instances where employees were not paid at the rate of pay noted in their contract. Cause ? The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect ? This deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 23 transactions out of 36 total transactions were selected for testing, which accounted for $741,540 of $759,829 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. Views of Responsible Officials ? There is no disagreement with the audit finding.