FAC Explorer

Audit 350310

FY End
2024-06-30
Total Expended
$4.01M
Findings
12
Programs
13
Organization: Independent School District #2909, Rock Ridge Public Schools (MN)
Year: 2024 Accepted: 2025-03-29
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540548 2024-005 Material Weakness - AB
540549 2024-006 Significant Deficiency - L
540550 2024-006 Significant Deficiency - L
540551 2024-006 Significant Deficiency - L
540552 2024-006 Significant Deficiency - L
540553 2024-006 Significant Deficiency - L
1116990 2024-005 Material Weakness - AB
1116991 2024-006 Significant Deficiency - L
1116992 2024-006 Significant Deficiency - L
1116993 2024-006 Significant Deficiency - L
1116994 2024-006 Significant Deficiency - L
1116995 2024-006 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.54M Yes 1
84.010 Title I Grants to Local Educational Agencies $587,746 - 0
10.555 National School Lunch Program $554,040 Yes 1
84.048 Career and Technical Education -- Basic Grants to States $355,783 - 0
84.027 Special Education Grants to States $243,958 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $208,721 - 0
10.553 School Breakfast Program $156,671 Yes 1
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $79,703 - 0
84.060 Indian Education Grants to Local Educational Agencies $51,254 - 0
84.424 Student Support and Academic Enrichment Program $35,662 - 0
10.559 Summer Food Service Program for Children $16,140 Yes 1
84.173 Special Education Preschool Grants $3,767 - 0
10.558 Child and Adult Care Food Program $3,130 - 0

Contacts

Name Title Type
JNEWZWBPL8H3 Andrea Lintula Auditee
2187353500 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 (the Schedule) are reported on the accrual basis of accounting. 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. 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. 2909 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. 2909, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 2909.
Title: COMMODITY DISTRIBUTION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. 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. 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. Non-monetary 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 (the Schedule) are reported on the accrual basis of accounting. 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. 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.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. 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. 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. During the year ended June 30, 2024, the District did not pass any federal money to subrecipients.

Finding Details

Finding 2024-005
Material Weakness in Internal Control Federal Program Education Stabilization Fund (AL 84.425U) Activities Allowed/Unallowed, Allowable Costs/Cost Principles Criteria A system of internal controls requires the review and signature of approval from the Superintendent on all purchase orders and all journal entry transactions requires the review and sign off by finance and payroll assistant Condition Two purchase orders were not signed by the Superintendent. Journal entry transactions were not reviewed or signed off on by anyone. Questioned Costs None Context A sample of 18 vendor disbursements were selected for testing. Two disbursements were not approved by the superintendent. We also noted journal entries charging expenses to the program lacked review and approval. Cause Management oversight. Effect The District has an increased risk of not being in compliance with federal activities allowed/unallowed and allowable costs/cost principles. Repeat Finding No. Recommendation The District should implement policies and procedures to establish a set dollar threshold for the purchase price that the Superintendent would need to sign on the purchase orders. They also need to establish a formal review and approval process for journal entry transactions. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-005
Material Weakness in Internal Control Federal Program Education Stabilization Fund (AL 84.425U) Activities Allowed/Unallowed, Allowable Costs/Cost Principles Criteria A system of internal controls requires the review and signature of approval from the Superintendent on all purchase orders and all journal entry transactions requires the review and sign off by finance and payroll assistant Condition Two purchase orders were not signed by the Superintendent. Journal entry transactions were not reviewed or signed off on by anyone. Questioned Costs None Context A sample of 18 vendor disbursements were selected for testing. Two disbursements were not approved by the superintendent. We also noted journal entries charging expenses to the program lacked review and approval. Cause Management oversight. Effect The District has an increased risk of not being in compliance with federal activities allowed/unallowed and allowable costs/cost principles. Repeat Finding No. Recommendation The District should implement policies and procedures to establish a set dollar threshold for the purchase price that the Superintendent would need to sign on the purchase orders. They also need to establish a formal review and approval process for journal entry transactions. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-006
Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.