Audit 38360

FY End
2022-06-30
Total Expended
$769,897
Findings
28
Programs
12
Organization: Ghec Isd 2536 (MN)
Year: 2022 Accepted: 2023-01-15
Auditor: Abdo LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42482 2022-006 Significant Deficiency - ABF
42483 2022-007 Material Weakness - F
42484 2022-006 Significant Deficiency - ABF
42485 2022-007 Material Weakness - F
42486 2022-007 Significant Deficiency - F
42487 2022-007 Significant Deficiency - F
42488 2022-007 Significant Deficiency - F
42489 2022-007 Significant Deficiency - F
42490 2022-007 Significant Deficiency - F
42491 2022-007 Significant Deficiency - F
42492 2022-007 Significant Deficiency - F
42493 2022-007 Significant Deficiency - F
42494 2022-007 Significant Deficiency - F
42495 2022-007 Significant Deficiency - F
618924 2022-006 Significant Deficiency - ABF
618925 2022-007 Material Weakness - F
618926 2022-006 Significant Deficiency - ABF
618927 2022-007 Material Weakness - F
618928 2022-007 Significant Deficiency - F
618929 2022-007 Significant Deficiency - F
618930 2022-007 Significant Deficiency - F
618931 2022-007 Significant Deficiency - F
618932 2022-007 Significant Deficiency - F
618933 2022-007 Significant Deficiency - F
618934 2022-007 Significant Deficiency - F
618935 2022-007 Significant Deficiency - F
618936 2022-007 Significant Deficiency - F
618937 2022-007 Significant Deficiency - F

Contacts

Name Title Type
Z2MJT4LMRJS8 Brian Mittelstadt Auditee
5074472211 Thomas Olinger Auditor
No contacts on file

Notes to SEFA

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. 2536, Granada, 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: 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: 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

2022-006 U.S. Department of Education Passed through State of Minnesota Education Stabilization Fund 84.425 Equipment/Real Property Management. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over equipment/real property expenditures in accordance with the District?s control policies and procedures. Cause: The District did not have adequate internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Effect: Internal controls procedures were not properly performed over equipment/real property expenditures Questioned Costs: None. Recommendation: We recommend the District enhance internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Management Response: Management agrees with this finding.
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-006 U.S. Department of Education Passed through State of Minnesota Education Stabilization Fund 84.425 Equipment/Real Property Management. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over equipment/real property expenditures in accordance with the District?s control policies and procedures. Cause: The District did not have adequate internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Effect: Internal controls procedures were not properly performed over equipment/real property expenditures Questioned Costs: None. Recommendation: We recommend the District enhance internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Management Response: Management agrees with this finding.
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-006 U.S. Department of Education Passed through State of Minnesota Education Stabilization Fund 84.425 Equipment/Real Property Management. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over equipment/real property expenditures in accordance with the District?s control policies and procedures. Cause: The District did not have adequate internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Effect: Internal controls procedures were not properly performed over equipment/real property expenditures Questioned Costs: None. Recommendation: We recommend the District enhance internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Management Response: Management agrees with this finding.
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-006 U.S. Department of Education Passed through State of Minnesota Education Stabilization Fund 84.425 Equipment/Real Property Management. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted that the District did not perform control procedures over equipment/real property expenditures in accordance with the District?s control policies and procedures. Cause: The District did not have adequate internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Effect: Internal controls procedures were not properly performed over equipment/real property expenditures Questioned Costs: None. Recommendation: We recommend the District enhance internal controls to ensure control procedures over equipment/real property expenditures in are being followed accordance with the District?s control policies and procedures. Management Response: Management agrees with this finding.
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar
2022-007 Uniform Guidance Policy Condition: During out audit, we discovered the District did not develop policies or procedures as required by the Uniform Guidance - ?200.313(c-e). Criteria: The District ?must? establish and maintain effective internal control over Federal awards that provides reasonable assurance that the District is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The District did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The District was out of compliance with this requirement. Recommendation: The District should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The District is awar