FAC Explorer

Audit 26062

FY End
2022-06-30
Total Expended
$1.36M
Findings
2
Programs
7
Organization: South Central Service Cooperative (MN)
Year: 2022 Accepted: 2022-11-15
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30492 2022-003 Material Weakness - P
606934 2022-003 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $428,752 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $380,814 - 0
84.027 Special Education_grants to States $342,151 Yes 1
84.181 Special Education-Grants for Infants and Families $74,701 - 0
84.425 Education Stabilization Fund $58,797 - 0
84.173 Special Education_preschool Grants $54,751 Yes 0
45.025 Promotion of the Arts_partnership Agreements $19,566 - 0

Contacts

Name Title Type
XXBKZNC45VB3 Carol Wessman Auditee
5073895110 Thomas 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 Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, 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: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the South Central Service Cooperative, North Mankato, Minnesota (the Cooperative). The Cooperative's reporting entity is defined in Note 1A to the Cooperative's financial statements. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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 Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, 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: The auditee did not use the de minimis 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 Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, 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: The auditee did not use the de minimis cost rate. Of the Federal expenditures presented in the schedule, the Cooperative provided Federal awards to subrecipients.

Finding Details

Finding 2022-003
2022-003 Overdrawn Grant Federal Agency: U.S. Department of Education Federal Program Titles: IDEA Part B Section 611 Discretionary Low Incidence CFDA Number: 84.027 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: H027A180087 Condition: The Cooperative inadvertently made a draw on their IDEA Part B Section 611 Discretionary Low Incidence grant that had already been claimed. Because of this, the Cooperative received excess grant receipts. Criteria: A reconciliation of the Cooperatives grant project detail to the grant claims showed less expenses than grant revenues. Cause: The Cooperative did not reconcile expenses to grant draws. Effect: The revenue claimed on the Cooperative?s grant draws was not correct, thus requiring a payable back to the State of Minnesota for $79,314 to remit the overdrawn amount. Recommendation: The Cooperative should compare expenses coded to each grant finance code with draws made. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Overdrawn Grant Federal Agency: U.S. Department of Education Federal Program Titles: IDEA Part B Section 611 Discretionary Low Incidence CFDA Number: 84.027 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: H027A180087 Condition: The Cooperative inadvertently made a draw on their IDEA Part B Section 611 Discretionary Low Incidence grant that had already been claimed. Because of this, the Cooperative received excess grant receipts. Criteria: A reconciliation of the Cooperatives grant project detail to the grant claims showed less expenses than grant revenues. Cause: The Cooperative did not reconcile expenses to grant draws. Effect: The revenue claimed on the Cooperative?s grant draws was not correct, thus requiring a payable back to the State of Minnesota for $79,314 to remit the overdrawn amount. Recommendation: The Cooperative should compare expenses coded to each grant finance code with draws made. Management Response: There is no disagreement with the audit finding.