FAC Explorer

Audit 34792

FY End
2022-06-30
Total Expended
$2.55M
Findings
10
Programs
13
Organization: Independent School District No.786 (MN)
Year: 2022 Accepted: 2022-12-22
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31053 2022-004 Material Weakness - N
31054 2022-004 Material Weakness - N
31055 2022-004 Material Weakness - N
31056 2022-004 Material Weakness - N
31057 2022-004 Material Weakness - N
607495 2022-004 Material Weakness - N
607496 2022-004 Material Weakness - N
607497 2022-004 Material Weakness - N
607498 2022-004 Material Weakness - N
607499 2022-004 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $180,904 - 0
10.553 School Breakfast Program $170,177 - 0
84.425 Education Stabilization Fund $148,573 Yes 1
93.575 Child Care and Development Block Grant $41,516 - 0
10.559 Summer Food Service Program for Children $38,296 - 0
84.358 Rural Education $29,129 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $27,193 - 0
84.367 Improving Teacher Quality State Grants $23,435 - 0
10.555 National School Lunch Program $15,607 - 0
84.424 Student Support and Academic Enrichment Program $12,063 - 0
84.048 Career and Technical Education -- Basic Grants to States $11,565 - 0
10.649 Pandemic Ebt Administrative Costs $1,405 - 0
84.027 Special Education_grants to States $57 - 0

Contacts

Name Title Type
DAAGZXHNZXV3 Lynn Lindquist Auditee
2189243257 Derek Flanagan Auditor
No contacts on file

Notes to SEFA

Title: 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 auditee did not use the 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, 2022. 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: 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 auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value commodities received and disbursed. At June 30, 2022 the District had food commodities totaling $13,011 in inventory.

Finding Details

Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-004
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.