Audit 295129

FY End
2023-06-30
Total Expended
$1.37M
Findings
12
Programs
9
Organization: Midway Star Academy (MN)
Year: 2023 Accepted: 2024-03-14
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
377328 2023-001 Significant Deficiency - AB
377329 2023-001 Significant Deficiency - AB
377330 2023-001 Significant Deficiency - AB
377331 2023-001 Significant Deficiency - AB
377332 2023-001 Significant Deficiency - AB
377333 2023-001 Significant Deficiency - AB
953770 2023-001 Significant Deficiency - AB
953771 2023-001 Significant Deficiency - AB
953772 2023-001 Significant Deficiency - AB
953773 2023-001 Significant Deficiency - AB
953774 2023-001 Significant Deficiency - AB
953775 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $457,025 - 0
84.010 Title I Grants to Local Educational Agencies $252,073 - 0
10.553 School Breakfast Program $139,286 - 1
84.027 Special Education_grants to States $84,223 - 0
84.365 English Language Acquisition State Grants $39,824 - 0
10.555 National School Lunch Program $11,996 - 1
10.582 Fresh Fruit and Vegetable Program $11,884 - 1
10.559 Summer Food Service Program for Children $10,070 - 1
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
QHDZRVGYVST7 Robert Procaccini Auditee
6512857676 Rob Ganschow Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the grant activity of Midway Star Academy under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations 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 Academy, it is not intended to and does not present the financial position, changes in net position or cash flows of Midway Star Academy. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Midway Star Academy has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Midway Star Academy does not have any sub-recipients of federal funding.

Finding Details

Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program. Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor. Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy. Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy. Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program. Repeat: No Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management. View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.