FAC Explorer

Audit 37169

FY End
2022-06-30
Total Expended
$1.43M
Findings
8
Programs
14
Organization: Independent School District No. 712 (MN)
Year: 2022 Accepted: 2023-02-06
Auditor: Brady Martz & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38401 2022-003 Significant Deficiency - AB
38402 2022-004 Significant Deficiency - N
38403 2022-003 Significant Deficiency - AB
38404 2022-004 Significant Deficiency - N
614843 2022-003 Significant Deficiency - AB
614844 2022-004 Significant Deficiency - N
614845 2022-003 Significant Deficiency - AB
614846 2022-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $507,387 Yes 2
10.555 National School Lunch Program $258,906 - 0
84.010 Title I Grants to Local Educational Agencies $84,032 - 0
10.553 School Breakfast Program $77,774 - 0
84.027 Special Education_grants to States $61,396 - 0
32.009 Emergency Connectivity Fund Program $41,164 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,000 - 0
84.358 Rural Education $36,572 - 0
10.559 Summer Food Service Program for Children $28,803 - 0
84.367 Improving Teacher Quality State Grants $12,733 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $4,437 - 0
84.173 Special Education_preschool Grants $2,266 - 0
84.181 Special Education-Grants for Infants and Families $1,617 - 0

Contacts

Name Title Type
N8L3FJPMZL93 Monica Marks Auditee
2187358271 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 auditee did not use the de minimis cost rate. During 2022, the District did not pass any federal money to subrecipients.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 auditee did not use the de minimis cost rate. The Schedule includes the federal award activity of the Independent School District No. 712 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 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 Independent School District No. 712, it is not intended to and does not present the financial position, changes in net position or cash flows of the Independent School District No. 712.
Title: Commodity Distribution Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 auditee did not use the de minimis cost rate. Nonmonetary 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 on the accompanying schedule of expenditures of federal awards (the Schedule) are reported under generally accepted accounting principles (U.S. GAAP). 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 auditee did not use the de minimis cost rate. Pass-through entities listed above without a pass-through number use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.

Finding Details

Finding 2022-003
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-004
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Special Tests and Provisions ? Wage Rate Criteria: Uniform Guidance states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contract or subcontractor comply with those requirements and DOL regulations.? Condition: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Questioned Costs: None. Context: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Cause: Management Oversight. Effect: The District entered into a construction contract that did not comply with the rules set by Uniform Guidance. Repeat Finding: No. Recommendation: The District should follow their ?Provisions included in All Contracts Charged to Federal Awards (2 CFR part 200 Appendix II)? section of their purchasing policy. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-003
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-004
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Special Tests and Provisions ? Wage Rate Criteria: Uniform Guidance states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contract or subcontractor comply with those requirements and DOL regulations.? Condition: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Questioned Costs: None. Context: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Cause: Management Oversight. Effect: The District entered into a construction contract that did not comply with the rules set by Uniform Guidance. Repeat Finding: No. Recommendation: The District should follow their ?Provisions included in All Contracts Charged to Federal Awards (2 CFR part 200 Appendix II)? section of their purchasing policy. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-003
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-004
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Special Tests and Provisions ? Wage Rate Criteria: Uniform Guidance states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contract or subcontractor comply with those requirements and DOL regulations.? Condition: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Questioned Costs: None. Context: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Cause: Management Oversight. Effect: The District entered into a construction contract that did not comply with the rules set by Uniform Guidance. Repeat Finding: No. Recommendation: The District should follow their ?Provisions included in All Contracts Charged to Federal Awards (2 CFR part 200 Appendix II)? section of their purchasing policy. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-003
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Allowable Activities/Allowable Costs Criteria: The District?s purchasing policy requires an approved purchase order for all purchases except reoccurring purchases. The District also has signed contacts that show the salary amount for all employee?s who sign a contract. Condition: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Questioned Costs: None. Context: We tested a sample of 40 transactions and noted 1 transaction did not receive pre-approval before purchase. We also noted 1 payroll transaction that did not list the accurate wage on the employee?s signed contract. Cause: Management Oversight. Effect: The District could make a purchase, or pay wages, with federal dollars that is not an allowable expense. Repeat Finding: No. Recommendation: The district should follow their purchasing policy to ensure all non-occurring transactions have an approved purchase order before the transaction is purchased. The district should also implement procedures that ensure that all employee contracts have the correct wage amount listed on the contract. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.
Finding 2022-004
Federal Program: COVID-19 Education Stabilization Fund (AL 84.425) Special Tests and Provisions ? Wage Rate Criteria: Uniform Guidance states ?Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contract or subcontractor comply with those requirements and DOL regulations.? Condition: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Questioned Costs: None. Context: The District entered into 1 contract in fiscal year 2022 that was paid with ESSER grant dollars. We noted this contract did not have the required wage rate verbiage listed. Cause: Management Oversight. Effect: The District entered into a construction contract that did not comply with the rules set by Uniform Guidance. Repeat Finding: No. Recommendation: The District should follow their ?Provisions included in All Contracts Charged to Federal Awards (2 CFR part 200 Appendix II)? section of their purchasing policy. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.