FAC Explorer

Audit 32539

FY End
2022-06-30
Total Expended
$3.77M
Findings
10
Programs
8
Organization: Freshwater Education District No. 6004 (MN)
Year: 2022 Accepted: 2023-01-25
Auditor: Brady Martz & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31240 2022-002 Significant Deficiency - AB
31241 2022-002 Significant Deficiency - AB
31242 2022-002 Significant Deficiency - AB
31243 2022-002 Significant Deficiency - AB
31244 2022-002 Significant Deficiency - AB
607682 2022-002 Significant Deficiency - AB
607683 2022-002 Significant Deficiency - AB
607684 2022-002 Significant Deficiency - AB
607685 2022-002 Significant Deficiency - AB
607686 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.048 Career and Technical Education -- Basic Grants to States $322,395 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $58,906 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,000 - 0
84.358 Rural Education $27,415 - 0
84.027 Special Education_grants to States $23,535 Yes 1
84.181 Special Education-Grants for Infants and Families $17,798 - 0
84.425 Education Stabilization Fund $6,274 Yes 0
84.173 Special Education_preschool Grants $167 Yes 1

Contacts

Name Title Type
YZHQKH148CB4 Jordan Anderson Auditee
2186296051 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule includes the federal award activity of the Freshwater Education District No. 6004 under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Freshwater Education District No. 6004, it is not intended to be and does not present the financial position or changes in net position of the Freshwater Education District No. 6004.
Title: Pass-Through Entities Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pass-through entities listed above without a pass-through number use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: Subrecipients Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District passes certain federal awards received from the State of Minnesota Department of Education to other governments or not-for-profit agencies (subrecipients). The District reports expenditures of federal awards to subrecipients when incurred using the principles under the modified accrual basis of accounting. As a subrecipient, the District has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use the subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the awards performance goals.

Finding Details

Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.
Finding 2022-002
Federal Program: Special Education (IDEA) Cluster (AL 84.027 & 84.173) Activities Allowed or Unallowed & Allowable Costs/Cost Principles Criteria: The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the District. Condition: One employee was overpaid and this overpayment was charged to the grant. Questioned Costs: Immaterial Context: A sample of 15 employees were selected for testing. For one employee tested, noted that the employee was overpaid by 76 hours. This was due to a miscommunication between Departments. There were no other errors found. Cause: The District did not have sufficient procedures in place to ensure that employees are paid the correct amount. Effect: This grant was charged for the employee overpayment. Repeat Finding: No. Recommendation: The District should review their payroll procedures to ensure employees are paid the correct amount. Views of Responsible Officials and Planned Corrective Actions: The District will review their payroll procedures to ensure employees are paid the correct amount.