Audit 35449

FY End
2022-06-30
Total Expended
$2.94M
Findings
22
Programs
13
Year: 2022 Accepted: 2022-11-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
36392 2022-003 Significant Deficiency Yes I
36393 2022-003 Significant Deficiency Yes I
36394 2022-003 Significant Deficiency Yes I
36395 2022-003 Significant Deficiency Yes I
36396 2022-003 Significant Deficiency Yes I
36397 2022-003 Significant Deficiency Yes I
36398 2022-003 Significant Deficiency Yes I
36399 2022-004 Significant Deficiency - N
36400 2022-004 Significant Deficiency - N
36401 2022-004 Significant Deficiency - N
36402 2022-004 Significant Deficiency - N
612834 2022-003 Significant Deficiency Yes I
612835 2022-003 Significant Deficiency Yes I
612836 2022-003 Significant Deficiency Yes I
612837 2022-003 Significant Deficiency Yes I
612838 2022-003 Significant Deficiency Yes I
612839 2022-003 Significant Deficiency Yes I
612840 2022-003 Significant Deficiency Yes I
612841 2022-004 Significant Deficiency - N
612842 2022-004 Significant Deficiency - N
612843 2022-004 Significant Deficiency - N
612844 2022-004 Significant Deficiency - N

Contacts

Name Title Type
E5XFMNNT3WZ5 Heather Hipp Auditee
2189277102 Mary L. Reedy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1GENERALThe accompanying schedule of expenditures of federal awards presents the expenditures of all federal financial assistance programs of Independent School District No. 001 for the year ended June 30, 2022. The reporting entity is defined in Note 1 to the Districts financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance pass through other government agencies is included on the schedule. The information in this schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a select 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.NOTE 2BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the Districts financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, with the exception of Assistance Listing Number 21.019, which follows criteria determined by the department of Treasury for allowability of costs. Under these principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement.NOTE 3INDIRECT COST RATEThe District has not elected to use the 10 percent de minimis in direct costs rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0001-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District should have controls in place to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the District did not verify that the vendors/contractors were not suspended or debarred until after awarding the contract. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested had no review before the awarding the contract to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Repeat Finding: Yes Recommendation: We recommend the District review suspension and debarment before entering into contracts with vendors. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.
2022-004 ? Special Provisions ? Wage Rate Requirements Federal agency: U.S. Department of Education Federal program title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U and 84.425W Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): S425C210015 and S425D210045 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Significant deficiency in internal control over compliance Criteria or Specific Requirement: Per 29 CFR Part 5, 2 CFR Part 176, subpart C and 2 CFR section 200.326, the District is required to include in their construction contract subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: During special provisions testing, it was noted that the District has the correct wording relating to the wage rate requirements in the contracts but did not obtain any documentation from the contractor ensuring that the contractor was following the wage rate requirements. Questioned Costs: Not applicable. Context: 1 out of 1 contractor selected has the proper wording relating to the Wage Rate Requirements in the contract but the District does not receive any documentation verifying the compliance. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with special provision requirements could result in paying contractors that are not in compliance with the Wage Rate Requirements set by the Department of Labor. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend that the District obtain the weekly payrolls and statement of compliance from contractors that work on construction contracts financed by federal assistance funds. Views of Responsible Official: There is no disagreement with the finding.