Audit 29510

FY End
2022-06-30
Total Expended
$10.29M
Findings
36
Programs
20
Year: 2022 Accepted: 2023-01-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
33007 2022-002 Material Weakness - I
33008 2022-003 Material Weakness - I
33009 2022-002 Material Weakness - I
33010 2022-003 Material Weakness - I
33011 2022-002 Material Weakness - I
33012 2022-003 Material Weakness - I
33013 2022-002 Material Weakness - I
33014 2022-003 Material Weakness - I
33015 2022-002 Material Weakness - I
33016 2022-003 Material Weakness - I
33017 2022-002 Material Weakness - I
33018 2022-003 Material Weakness - I
33019 2022-002 Material Weakness - I
33020 2022-003 Material Weakness - I
33021 2022-002 Material Weakness - I
33022 2022-003 Material Weakness - I
33023 2022-002 Material Weakness - I
33024 2022-003 Material Weakness - I
609449 2022-002 Material Weakness - I
609450 2022-003 Material Weakness - I
609451 2022-002 Material Weakness - I
609452 2022-003 Material Weakness - I
609453 2022-002 Material Weakness - I
609454 2022-003 Material Weakness - I
609455 2022-002 Material Weakness - I
609456 2022-003 Material Weakness - I
609457 2022-002 Material Weakness - I
609458 2022-003 Material Weakness - I
609459 2022-002 Material Weakness - I
609460 2022-003 Material Weakness - I
609461 2022-002 Material Weakness - I
609462 2022-003 Material Weakness - I
609463 2022-002 Material Weakness - I
609464 2022-003 Material Weakness - I
609465 2022-002 Material Weakness - I
609466 2022-003 Material Weakness - I

Contacts

Name Title Type
J62SJN6FQML4 Lynne Ritzer Auditee
6513518333 Michelle Hoffman, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Assistance Listing 21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles, 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 (the Schedule) includes the federal award activity of the Independent School District No. 834 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 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 position, or cash flows of the District.

Finding Details

2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.
2022-002 Criteria: ?200.318 - ?200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not utilize quotes, sealed bids, or competitive proposals for certain procurements and any sole course conclusions were also not documented. Questioned Costs: ALN 10.553 and 10.555, Federal Award Identification Number 22MIN061N1199: $115,190.69 ALN 84.027 and 84.173, Federal Award Identification Number H027A210087: $302,459.82 Context: Of the two procurements tested in the Special Education Cluster, both were missing documentation to support a proper procurement method. Of 14 procurements tested in the Child Nutrition Cluster, three were missing documentation to support a proper procurement method. Cause: The District procedures do not contain sufficient guidelines for ensuring all procurements utilize the proper method and are properly documented. Effect: The lack of proper methods and documentation could lead to using vendors for small purchase acquisitions without ensuring comparable pricing from other vendors and justifying costs. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: CLA recommends the District puts in place the proper procedures for sufficiently documenting all procurements and methodology used. View of Responsible Official: There is no disagreement with the audit finding.
2022-003 Material Weakness in Internal Controls over Compliance and Compliance Federal Agency: U.S. Department of Agriculture and U.S. Department of Education Federal Program Name: Child Nutrition Cluster and Special Education Cluster Assistance Listing Number: 10.553, 10.555, 84.027, and 84.173 Federal Award Identification Number and Year: 22MIN061N1199 and H027A210087 Pass-Through Agency: Minnesota Department of Education Pass-Through Numbers: Unknown Award Period: Fiscal Year 2022 Criteria: The district should have controls in place to ensure compliance with suspension and debarment requirements. The Uniform Guidance requires that when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by either checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), collecting a certification from the entity, or adding a clause to the covered transaction with the entity. Condition: The School District did not perform the required verification procedures over several covered transactions in fiscal year 2022. Context: Of five covered transactions tested in the Special Education Cluster, it was noted that the District did not perform the required verifications on any of the five. Of five covered transactions tested in the Child Nutrition Cluster, it was noted that the District did not perform the required verifications on one of the five. Questioned Costs: None Cause: The District has had turnover in some roles within the Special Education program. Nutrition Services has limited ability to obtain food and materials due to supply chain issues. Effect: The District could have entered into a covered transaction with an entity which was suspended or debarred without realizing it. Repeat Finding: No Recommendation: We recommend that the District follow its procurement policies as well as requirements within the Uniform Guidance to perform the proper verification procedures on all covered transactions entered into with federal funds. View of Responsible Official: There is no disagreement with the audit finding.