Audit 32745

FY End
2022-06-30
Total Expended
$17.02M
Findings
16
Programs
19
Organization: Independent School District 38 (MN)
Year: 2022 Accepted: 2023-01-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37021 2022-002 Material Weakness - A
37022 2022-002 Material Weakness - A
37023 2022-003 Material Weakness - L
37024 2022-003 Material Weakness - L
37025 2022-003 Material Weakness - L
37026 2022-003 Material Weakness - L
37027 2022-003 Material Weakness - L
37028 2022-003 Material Weakness - L
613463 2022-002 Material Weakness - A
613464 2022-002 Material Weakness - A
613465 2022-003 Material Weakness - L
613466 2022-003 Material Weakness - L
613467 2022-003 Material Weakness - L
613468 2022-003 Material Weakness - L
613469 2022-003 Material Weakness - L
613470 2022-003 Material Weakness - L

Contacts

Name Title Type
LJSFLY2338V5 Willie Larson Auditee
2186791708 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 under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 accompanying schedule of expenditures of federal awards includes the federal award activity of Independent School District No. 38 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 Independent School District No. 38, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 38.
Title: Commodity Distribution Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Pass-Through Entities Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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. During 2022, the District did not pass any federal money to subrecipients.

Finding Details

Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Education Stabilization Fund (84.425) Activities Allowed or Unallowed Criteria: To ensure all expenditures charged to a program are allowable the District should establish controls for approval of expenditures. All expenditures should be charged to the correct period. Condition: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. Questioned Costs: None Context: We tested 40 transactions and we noted one transaction for $247,713 that was a FY 2023 expenditure. The expenditure was removed from the program and the grant funds were returned to the Minnesota Department of Education. Cause: The District does not have sufficient procedures in place to ensure all expenditures are reported in the correct period. Effect: There is an increased risk of unallowable costs being charged to grants. Repeat Finding: No Recommendation: We recommend that the District report expenditures in the correct period and consider implementing a review process to ensure the expenditures are reported in the correct period. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Federal Program: Child Nutrition Cluster (10.553, 10.555, 10.559, 10.582) Reporting Criteria: To receive reimbursement payment for meals served, the District must submit the number of meals served and all claims must be supported by accurate meal counts by category and type. Condition: The daily count sheets were reported in a monthly summary, and the totals from the monthly summary were submitted to the state for reimbursement. Our population included the monthly reports submitted for reimbursement, and our population included 12 months and we tested 2 months. The sample total for the first month was $101,100 and the net difference in meals reported was $7,036. The sample total for the second month was $111,755 and the net difference in meals reported was -$48. Questioned Costs: None Context: The District misstated the daily meal counts on the monthly reports submitted for reimbursement. Cause: The District does not have sufficient procedures in place to ensure all meals are reported correctly. Effect: The District misstated the monthly meal counts submitted for reimbursement. Repeat Finding: No Recommendation: The District should review their policies and procedures for submitting meal counts for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.