FAC Explorer

Audit 35565

FY End
2022-06-30
Total Expended
$2.72M
Findings
10
Programs
19
Organization: Redwood Falls Independent School District No. 2897 (MN)
Year: 2022 Accepted: 2023-01-15
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31284 2022-004 - Yes P
31285 2022-004 - Yes P
31286 2022-004 - Yes P
31287 2022-004 - Yes P
31288 2022-004 - Yes P
607726 2022-004 - Yes P
607727 2022-004 - Yes P
607728 2022-004 - Yes P
607729 2022-004 - Yes P
607730 2022-004 - Yes P

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $622,432 - 1
84.425 Education Stabilization Fund Under the Coronavirus Aid, Relief, and Economic Security Act Elementary and Secondary School Education Relief II $447,383 Yes 0
84.425 Education Stabilization Fund Under the Coronavirus Aid, Relief, and Economic Security Act Expanded Summer Learning $333,146 - 0
10.553 School Breakfast Program $251,466 - 1
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $226,794 Yes 0
84.027 Special Education_grants to States $219,458 - 0
84.010 Title I Grants to Local Educational Agencies $217,604 Yes 0
84.041 Impact Aid $150,776 - 0
84.060 Indian Education_grants to Local Educational Agencies $77,112 - 0
10.555 National School Lunch Program -Commodities $60,412 - 1
84.367 Improving Teacher Quality State Grants $36,122 - 0
10.555 Supply Chain Assist Fund $23,220 - 1
21.027 Covid-19 - Summer Academic Enrichment and Mental Health $22,242 - 0
84.424 Student Support and Academic Enrichment Program $20,498 - 0
84.425 Education Stabilization Fund Under the Coronavirus Aid, Relief, and Economic Securities Act Expanded Summer Learning $5,780 Yes 0
21.027 Covid-19 -Arp Tutoring $3,205 - 0
21.027 Covid-19 -Summer Preschool Aid $1,700 - 0
84.048 Career and Technical Education -- Basic Grants to States $1,269 - 0
10.559 Summer Food Service Program for Children $605 - 1

Contacts

Name Title Type
UT3FZCTLZGQ3 Tom Anderson Auditee
5076448068 Thomas Olinger Auditor
No contacts on file

Notes to SEFA

Title: Pass-Through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non*Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pass-through entity identifying numbers, if any, are presented where available.
Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non*Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 presents the activity of all federal awards programs of the Independent School District No. 2897, Redwood Falls, Minnesota (the District). The District's reporting entity is defined in Note 1A to the District's financial statements. 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). All federal awards received directly from Federal agencies as well as Federal awards passed through other government agencies are included on the schedule.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non*Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No federal expenditures presented in this schedule were provided to subrecipients.

Finding Details

Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.
Finding 2022-004
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.