Audit 377938

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Federal Award Identification Number and Year: Unknown – 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0381-000 Type of Finding: Material Weakness in Internal Control over Compliance Condition: During eligibility testing, it was noted that two out of two paper applications tested did not have documentation of review and approval by someone other than the preparer. Criteria or Specific Requirement: The District should have controls in place the ensure the accuracy of all eligibility paper applications for the District’s Child Nutrition Cluster program. These controls should be formally documented to ensure they have been properly implemented. Questioned Costs: None. Context: 2 out of 2 paper applications tested did not have documented of review and approval by someone other than the preparer. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: Not applicable. Recommendation: We recommend that the District implement procedures and controls to ensure that all paper applications are being reviewed. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: Unknown – 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): H027A240087 and H173A240086 Type of Finding: Material Weakness in Internal Control over Compliance Condition: During allowable costs/allowable activities testing, it was noted that journal entries made to allocate expenses related to the grant were not reviewed by someone other than the preparer. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all journal entries used to allocate expenses for the District’s Special Education Cluster program. These controls should be formally documented to ensure they have been properly implemented. Questioned Costs: None. Context: 1 out of 3 journal entries selected did not have proper review process implemented. Effect: Lack of proper documentation of controls over compliance with allowable costs/allowable activities requirements could result in errors being reported and going undetected or not deterred in a timely manner. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: Not applicable Recommendation: We recommend that the District implement procedures and controls to ensure the journal entries are accurate before posting. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: Unknown – 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): H027A240087 and H173A240086 Type of Finding: Material Weakness in Internal Control over Compliance Condition: During allowable costs/allowable activities testing, it was noted that 3 out of 40 students were included on the MARSS listing that should not have been. Criteria or Specific Requirement: The District should have controls in place to ensure that only students eligible for special education programs are included on the MARSS listing. Questioned Costs: None. Context: 3 out of 40 students selected for testing were included on the MARSS listing that should not have been. Effect: Lack of proper documentation of controls over compliance with allowable costs/allowable activities requirements could result in errors being reported and going undetected or not deterred in a timely manner. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: Not applicable Recommendation: We recommend that the District implement procedures and controls to ensure that only eligible students are included on the MARSS listing. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.