FAC Explorer

Audit 328884

FY End
2024-06-30
Total Expended
$1.14M
Findings
2
Programs
10
Organization: Independent School District No. 32 (MN)
Year: 2024 Accepted: 2024-11-19
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
508324 2024-003 Significant Deficiency Yes N
1084766 2024-003 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $382,485 - 1
84.010 Title I Grants to Local Educational Agencies $207,911 - 0
10.553 School Breakfast Program $98,303 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $27,154 - 0
10.555 National School Lunch Program $22,338 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $22,187 - 0
84.060 Indian Education Grants to Local Educational Agencies $20,602 - 0
10.582 Fresh Fruit and Vegetable Program $14,465 Yes 0
10.649 Pandemic Ebt Administrative Costs $3,256 - 0
15.130 Indian Education Assistance to Schools $2,561 - 0

Contacts

Name Title Type
ML69JMFAGJ35 Joshua Ziegler Auditee
2188355203 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (“Schedule”) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in the 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 District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of Independent School District No. 32 under programs of the federal government for the year ended June 30, 2024. 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. 32, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 32.
Title: COMMODITY DISTRIBUTION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (“Schedule”) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in the 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 District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 in the accompanying schedule of expenditures of federal awards (“Schedule”) are reported under generally accepted accounting principles (U.S. GAAP). Such expenditures are recognized following the cost principles contained in the 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 District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All pass-through entities listed on the previous page use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.

Finding Details

Finding 2024-003
Section III-Federal Award Findings and Questioned Costs 2024-003 FINDING Federal Program Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria Uniform Guidance stated “the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls)”. Condition We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the District. Questioned Costs None Context During internal control inquiries we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the District did not submit any certified payrolls. Cause Oversight by management. Effect The required certified payrolls were not being submitted per federal requirements. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will review its policies and procedures.
Finding 2024-003
Section III-Federal Award Findings and Questioned Costs 2024-003 FINDING Federal Program Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria Uniform Guidance stated “the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls)”. Condition We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the District. Questioned Costs None Context During internal control inquiries we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the District did not submit any certified payrolls. Cause Oversight by management. Effect The required certified payrolls were not being submitted per federal requirements. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will review its policies and procedures.