FAC Explorer

Audit 36432

FY End
2022-06-30
Total Expended
$2.60M
Findings
4
Programs
14
Organization: Rockford Area Public Schools (MN)
Year: 2022 Accepted: 2023-01-08
Auditor: Schlenner Wenner & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38399 2022-006 Significant Deficiency - F
38400 2022-007 Significant Deficiency - F
614841 2022-006 Significant Deficiency - F
614842 2022-007 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
10.555 Covid-19 - National School Lunch Program $849,267 Yes 0
84.165 Magnet Schools Assistance $602,459 - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $227,976 - 0
32.009 Covid-19 - Emergency Connectivity Fund Program $202,000 - 0
84.425 Covid-19 - Education Stabilization Fund $167,137 Yes 2
10.553 Covid-19 - School Breakfast Program $164,390 Yes 0
84.010 Title I Grants to Local Educational Agencies $106,311 - 0
84.027 Special Education_grants to States $86,022 - 0
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $62,015 - 0
84.367 Improving Teacher Quality State Grants $24,132 - 0
84.365 English Language Acquisition State Grants $16,204 - 0
84.173 Special Education_preschool Grants $11,720 - 0
84.424 Student Support and Academic Enrichment Program $4,204 - 0
84.048 Career and Technical Education -- Basic Grants to States $2,581 - 0

Contacts

Name Title Type
TASZJVZFN8S1 Mike McNulty Auditee
7634777511 Ryan Schmidt Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Independent School District No. 883 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (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 Independent School District No. 883, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 883. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein contain types of expenditures are not allowable or are limited as to reimbursement.
Title: Inventory Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Independent School District No. 883 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (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 Independent School District No. 883, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 883. 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 of commodities received and disbursed for the USDA National School Lunch Program Commodities (ALN # 10.555). Revenue and expenditures are recorded when commodities are received.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Independent School District No. 883 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (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 Independent School District No. 883, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 883. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not pass any federal funds to subrecipients during the year ended June 30, 2022.
Title: Pass-Through Identifier Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Independent School District No. 883 (the District) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations (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 Independent School District No. 883, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 883. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District's pass-through identifying numbers assigned by each pass-through entity above are unknown.

Finding Details

Finding 2022-006
Finding 2022-006 Internal Control Over Approval of Equipment Purchases Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to obtain prior approval for the purchase of equipment greater than $5,000. Criteria: Per program requirements, the District was required to obtain prior approval from the Minnesota Department of Education for any equipment (greater than $5,000) purchased via program dollars. Cause: Because the program is relatively new and the District experienced staffing turnover during the year, the District was not fully aware of the program?s requirements. Effect: The failure to obtain noted approval cause the District to not be in compliance with the program?s requirements. Context: This is a control requirement required by the Minnesota Department of Education to ensure that expenditures submitted under the program are allowable. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and implement requests for approvals as necessary. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
Finding 2022-007
Finding 2022-007 Equipment and Real Property Management Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to capitalize equipment with a current per-unit fair market value in excess of $5,000. Criteria: Per the Uniform Guidance, property records must be maintained for tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000 in program dollars. Cause: The District failed to add an equipment purchase to the District?s capital asset records. Effect: The failure to incorporate the asset into the capital asset records resulted in the District?s noncompliance with the program?s requirements. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and controls over ensuring the completeness capital asset records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
Finding 2022-006
Finding 2022-006 Internal Control Over Approval of Equipment Purchases Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to obtain prior approval for the purchase of equipment greater than $5,000. Criteria: Per program requirements, the District was required to obtain prior approval from the Minnesota Department of Education for any equipment (greater than $5,000) purchased via program dollars. Cause: Because the program is relatively new and the District experienced staffing turnover during the year, the District was not fully aware of the program?s requirements. Effect: The failure to obtain noted approval cause the District to not be in compliance with the program?s requirements. Context: This is a control requirement required by the Minnesota Department of Education to ensure that expenditures submitted under the program are allowable. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and implement requests for approvals as necessary. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
Finding 2022-007
Finding 2022-007 Equipment and Real Property Management Federal Program: Education Stabilization Fund (ALN 84.425) Condition: Independent School District No. 883 (the District) failed to capitalize equipment with a current per-unit fair market value in excess of $5,000. Criteria: Per the Uniform Guidance, property records must be maintained for tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000 in program dollars. Cause: The District failed to add an equipment purchase to the District?s capital asset records. Effect: The failure to incorporate the asset into the capital asset records resulted in the District?s noncompliance with the program?s requirements. Questioned Costs: None identified. Recommendation: We recommend the District assess internal controls related to the District?s Federal dollars and controls over ensuring the completeness capital asset records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.