MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 10.553, 10.555, AND 10.559
2023-004 Internal Control Over Compliance and Material Noncompliance With Federal Procurement, Suspension, and Debarment Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement, suspension, and debarment requirements applicable to the child nutrition cluster federal program.
Condition – During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its child nutrition cluster federal program to ensure compliance with federal procurement requirements related to methods of procurement and to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds.
Questioned Costs – None.
Context – For four of five vendors exceeding the micro-purchase threshold, the District did not document procurement policy and the Uniform Guidance requirements related to methods of procurement and a proper documentation of suspension and debarment testing was not maintained for three of three vendors tested to ensure compliance with this requirement in the current year. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by district personnel.
Effect – Noncompliance with procurement, suspension, and debarment requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures relating to procurement, suspension, and debarment for the child nutrition cluster federal program. Internal controls over compliance should be in place to ensure compliance with federal procurement procedures, including awarding and documenting contracts based on sealed bids or quotations for the purchase of goods or services exceeding applicable federal dollar thresholds. Internal controls over compliance should also include verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its policies and procedures relating to procurement, suspension, and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425
2023-005 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements
Criteria – 2 CFR § 200.313 requires the District to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number (ALN)), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years.
Condition – During our audit, we noted that the District did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally funded fixed assets and maintain the required records as noted above to assure compliance with federal equipment and real property management requirements. The District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Two fixed assets purchased with federal awards in the current year were not maintained in accordance with federal equipment and real property management requirements.
Questioned Costs – None.
Context – A population of two applicable fixed assets purchased with federal awards were noted during the course of our audit. This was not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – The District did not have a system in place for specifically identifying federally funded fixed assets and maintaining the required records as noted above.
Effect – This could be viewed as a violation of the award agreement.
Recommendation – We recommend that the District review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 Education Stabilization Fund federal program.
View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. The District has separately issued a Corrective Action Plan related to this finding.