FAC Explorer

Audit 336359

FY End
2024-06-30
Total Expended
$919,445
Findings
12
Programs
10
Organization: Independent School District No. 548 (MN)
Year: 2024 Accepted: 2025-01-07
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518024 2024-005 Material Weakness - AB
518025 2024-005 Material Weakness - AB
518026 2024-005 Material Weakness - AB
518027 2024-005 Material Weakness - AB
518028 2024-005 Material Weakness - AB
518029 2024-005 Material Weakness - AB
1094466 2024-005 Material Weakness - AB
1094467 2024-005 Material Weakness - AB
1094468 2024-005 Material Weakness - AB
1094469 2024-005 Material Weakness - AB
1094470 2024-005 Material Weakness - AB
1094471 2024-005 Material Weakness - AB

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $242,799 - 0
10.553 School Breakfast Program $131,075 Yes 1
10.582 Fresh Fruit and Vegetable Program $40,874 Yes 1
10.559 Summer Food Service Program for Children $31,493 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $27,389 - 0
10.555 National School Lunch Program $26,063 Yes 1
84.365 English Language Acquisition State Grants $22,195 - 0
10.185 Local Food for Schools Cooperative Agreement Program $2,066 - 0
84.425 Education Stabilization Fund $480 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $4 - 0

Contacts

Name Title Type
EJXRMMFMHLT7 Rudy Martinez Auditee
2188639316 Brian Stavenger Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified 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 District has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. 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 schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District.
Title: Note 4 – Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified 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 District has not elected to use the 10% de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of commodities received and disbursed. At June 30, 2024 the District had food commodities totaling $7,369 in inventory.

Finding Details

Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.
Finding 2024-005
2024-005 Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing 10.553/10.555/10.559/10.582 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control Over Compliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring documentation of expenditures, including payroll transactions, is reviewed and maintained. Condition – During the course of our engagement, we noted instances where employees were paid for incorrect hours. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – The deficiency could result in a misstatement to the financial statements that would not be prevented or detected. Questioned Costs – None reported. Context/Sampling – A non-statistical sample of 40 transaction out of a population greater than 250 total transaction were selected for testing, which accounted for $111,047 of $621,417 expended in program of federal program expenditures. Repeat Finding from Prior Year(s) – No Recommendation – A thorough review and reconciliation of supporting documentation for expenditures, including payroll transactions, should be performed before amounts are disbursed. Supporting documentation should be maintained once review is documented and performed. View of Responsible Officials – There are no disagreements with this finding.