FAC Explorer

Audit 315245

FY End
2023-12-31
Total Expended
$1.74M
Findings
80
Programs
8
Organization: Nexus Family Healing (MN)
Year: 2023 Accepted: 2024-07-16
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478618 2023-001 Material Weakness - P
478619 2023-001 Material Weakness - P
478620 2023-001 Material Weakness - P
478621 2023-001 Material Weakness - P
478622 2023-001 Material Weakness - P
478623 2023-001 Material Weakness - P
478624 2023-001 Material Weakness - P
478625 2023-001 Material Weakness - P
478626 2023-001 Material Weakness - P
478627 2023-001 Material Weakness - P
478628 2023-001 Material Weakness - P
478629 2023-001 Material Weakness - P
478630 2023-001 Material Weakness - P
478631 2023-002 Material Weakness - ABL
478632 2023-002 Material Weakness - ABL
478633 2023-002 Material Weakness - ABL
478634 2023-002 Material Weakness - ABL
478635 2023-002 Material Weakness - ABL
478636 2023-002 Material Weakness - ABL
478637 2023-002 Material Weakness - ABL
478638 2023-002 Material Weakness - ABL
478639 2023-002 Material Weakness - ABL
478640 2023-002 Material Weakness - ABL
478641 2023-002 Material Weakness - ABL
478642 2023-002 Material Weakness - ABL
478643 2023-002 Material Weakness - ABL
478644 2023-003 Significant Deficiency - I
478645 2023-003 Significant Deficiency - I
478646 2023-003 Significant Deficiency - I
478647 2023-003 Significant Deficiency - I
478648 2023-003 Significant Deficiency - I
478649 2023-003 Significant Deficiency - I
478650 2023-003 Significant Deficiency - I
478651 2023-003 Significant Deficiency - I
478652 2023-003 Significant Deficiency - I
478653 2023-003 Significant Deficiency - I
478654 2023-003 Significant Deficiency - I
478655 2023-003 Significant Deficiency - I
478656 2023-003 Significant Deficiency - I
478657 2023-001 Material Weakness - P
1055060 2023-001 Material Weakness - P
1055061 2023-001 Material Weakness - P
1055062 2023-001 Material Weakness - P
1055063 2023-001 Material Weakness - P
1055064 2023-001 Material Weakness - P
1055065 2023-001 Material Weakness - P
1055066 2023-001 Material Weakness - P
1055067 2023-001 Material Weakness - P
1055068 2023-001 Material Weakness - P
1055069 2023-001 Material Weakness - P
1055070 2023-001 Material Weakness - P
1055071 2023-001 Material Weakness - P
1055072 2023-001 Material Weakness - P
1055073 2023-002 Material Weakness - ABL
1055074 2023-002 Material Weakness - ABL
1055075 2023-002 Material Weakness - ABL
1055076 2023-002 Material Weakness - ABL
1055077 2023-002 Material Weakness - ABL
1055078 2023-002 Material Weakness - ABL
1055079 2023-002 Material Weakness - ABL
1055080 2023-002 Material Weakness - ABL
1055081 2023-002 Material Weakness - ABL
1055082 2023-002 Material Weakness - ABL
1055083 2023-002 Material Weakness - ABL
1055084 2023-002 Material Weakness - ABL
1055085 2023-002 Material Weakness - ABL
1055086 2023-003 Significant Deficiency - I
1055087 2023-003 Significant Deficiency - I
1055088 2023-003 Significant Deficiency - I
1055089 2023-003 Significant Deficiency - I
1055090 2023-003 Significant Deficiency - I
1055091 2023-003 Significant Deficiency - I
1055092 2023-003 Significant Deficiency - I
1055093 2023-003 Significant Deficiency - I
1055094 2023-003 Significant Deficiency - I
1055095 2023-003 Significant Deficiency - I
1055096 2023-003 Significant Deficiency - I
1055097 2023-003 Significant Deficiency - I
1055098 2023-003 Significant Deficiency - I
1055099 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.215J Innovative Approaches to Literacy; Promise Neighborhoods; and Full Service Community Schools $451,304 Yes 1
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $221,264 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $92,584 - 0
10.559 Summer Food Service Program for Children $55,567 Yes 3
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $27,812 - 0
10.555 National School Lunch Program $10,331 Yes 3
10.553 School Breakfast Program $1,832 Yes 3
10.560 State Administrative Expenses for Child Nutrition $113 - 0

Contacts

Name Title Type
YJGXXGE6PJF9 Scott McGuire Auditee
7635518661 Hannah Horn Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported in the consolidated schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the consolidated schedule) includes the federal grant activity of Nexus Family Healing and its subsidiaries (the Organization), under programs of the Federal Government for the year ended December 31, 2023. The information is presented in accordance with the requirements of 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 consolidated schedule presents only a selected portion of the operations of the Organization, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the consolidated schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. Expenditures reported in the consolidated schedule  are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported in the consolidated schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. The Organization has not elected to use the 10% de minimis cost rate.
Title: Note 4 - Food Donation Accounting Policies: Expenditures reported in the consolidated schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis cost rate. Nonmonetary assistance is reported in this consolidated schedule at the fair market value of the commodities received and disbursed. At December 31, 2023, the Organization had no food commodities in inventory. The Organization reported total noncash food donations on the consolidated schedule of $27,082 as part of the Child Nutrition Cluster.

Finding Details

Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no formal documentation of review and approval of seven invoices selected for testing. There was no formal documentation of review and approval for 31 meal count sheets selected for testing. There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing. Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls. Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards. 60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards. 16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required depending on the amount of the transaction. Condition: In our testing of procurement, suspension, and debarment, it was identified that the search for suspension and debarment was performed subsequent to entering into covered transactions with three vendors. Cause: The Organization has designated internal controls over this area; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering into the covered transaction could result in noncompliance. Questioned Costs: None reported. Context/Sampling: 7 vendors out of 31 vendors total were selected for testing which made up $240,437 of $572,161 federal awards. Repeat Finding from Prior Year: No Recommendation: We recommend that management review vendors for suspension and debarment prior to entering into contracts to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-001
U.S. Department of Agriculture Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education Child Nutrition Cluster: School Breakfast Program, 10.553 National School Lunch Program, 10.555 Summer Food Service Program for Children, 10.559 U.S. Department of Education Research and Development Cluster: Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule. Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule. Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed. Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis. Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management agrees with this finding.