FAC Explorer

Audit 335281

FY End
2024-06-30
Total Expended
$4.05M
Findings
6
Programs
12
Organization: Independent School District No. 273 (MN)
Year: 2024 Accepted: 2024-12-31
Auditor: Malloy Montague Karnowski Radosevich & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517262 2024-001 Significant Deficiency - I
517263 2024-001 Significant Deficiency - I
517264 2024-001 Significant Deficiency - I
1093704 2024-001 Significant Deficiency - I
1093705 2024-001 Significant Deficiency - I
1093706 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.45M - 0
84.425 Education Stabilization Fund $332,598 - 0
10.553 School Breakfast Program $183,572 - 0
84.010 Title I Grants to Local Educational Agencies $159,042 - 0
84.365 English Language Acquisition State Grants $83,559 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $68,420 - 0
84.181 Special Education-Grants for Infants and Families $43,034 - 0
84.173 Special Education Preschool Grants $40,507 Yes 1
84.027 Special Education Grants to States $24,450 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $23,221 - 0
84.048 Career and Technical Education -- Basic Grants to States $13,715 - 0
10.649 Pandemic Ebt Administrative Costs $3,256 - 0

Contacts

Name Title Type
JTDPRVNGR858 Mert Woodard Auditee
9528484916 William Lauer Auditor
No contacts on file

Notes to SEFA

Title: Additional Note #1 Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the District’s basic financial statements. All pass-through entities listed above use the same federal Assistance Listing Number (ALN) as the federal grantors to identify these grants. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate. The District had $334,396 of noncash assistance included in the National School Lunch Program, federal ALN 10.555.
Title: Additional Note #2 Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the District’s basic financial statements. All pass-through entities listed above use the same federal Assistance Listing Number (ALN) as the federal grantors to identify these grants. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate. The District transferred $10,436 into (Title II) Supporting Effective Instruction State Grants, federal ALN 84.367 from other Title programs.

Finding Details

Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.
Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.
Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.
Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.
Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.
Finding 2024-001
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER – FEDERAL ALN 84.027 (INCLUDING COVID-19 FUNDING) AND 84.173 2024-001 Internal Control Over Compliance with Federal Suspension and Debarment Requirements Criteria – 2 CFR § 180 requires Independent School District No. 273 (the District) to establish and maintain effective internal control over compliance with requirements applicable to federal programs expenditures, including suspension and debarment requirements applicable to special education cluster federal program expenditures. Condition – During our audit, we noted the District did not have sufficient controls in place within its special education cluster to assure it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Questioned Costs – None. Our testing did not indicate any instances of noncompliance with this requirement. Context – The District did not obtain appropriate timely documentation for one of two vendors tested that the vendor was not suspended or debarred from participating in federal program contracts. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – For one vendor tested, the District did not review and document vendor eligibility until after expenditures had been paid to the vendor in excess of the $25,000 threshold. Effect - Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to suspension and debarment applicable to its special education cluster federal programs. Internal controls over compliance for this area should include timely verification that any vendor with which the District contracts for goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will update its policies and procedures relating to suspension and debarment to ensure that, in the future, compliance with this requirement is verified and documented prior to expending $25,000 or more of federal funds with any single vendor. The District has issued a separate Corrective Action Plan related to this finding.