Audit 40556

FY End
2022-06-30
Total Expended
$1.51M
Findings
20
Programs
13
Year: 2022 Accepted: 2022-11-16

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42460 2022-005 Significant Deficiency Yes I
42461 2022-006 Significant Deficiency - N
42462 2022-005 Significant Deficiency Yes I
43587 2022-006 Significant Deficiency - N
43588 2022-005 Significant Deficiency Yes I
43589 2022-006 Significant Deficiency - N
43590 2022-005 Significant Deficiency Yes I
43591 2022-006 Significant Deficiency - N
43592 2022-005 Significant Deficiency Yes I
43593 2022-006 Significant Deficiency - N
618902 2022-005 Significant Deficiency Yes I
618903 2022-006 Significant Deficiency - N
618904 2022-005 Significant Deficiency Yes I
620029 2022-006 Significant Deficiency - N
620030 2022-005 Significant Deficiency Yes I
620031 2022-006 Significant Deficiency - N
620032 2022-005 Significant Deficiency Yes I
620033 2022-006 Significant Deficiency - N
620034 2022-005 Significant Deficiency Yes I
620035 2022-006 Significant Deficiency - N

Contacts

Name Title Type
ZYUCTZCJ74S4 Theresa Moore Auditee
3208592191 Mary L. Reedy Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1GENERALThe accompanying schedule of expenditures of federal awards presents the expenditures of all federal financial assistance programs of Independent School District No. 213 for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of 2 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 the District, it is not intended to and does not present the financial position or changes in net position of the District.NOTE 2BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the Districts financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under these principles certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3INDIRECT COST RATEThe District has not elected to use the 10% de minimis in direct costs rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-005 Procurement Policy Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199- 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: During procurement and suspension and debarment testing it was noted that the District did not have a written procurement policy in place. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ?200.319 states that the entity must have written procedures for procurement transactions and the written procedures must meet the requirements of the regulations. Context: During our testing of two procurement transactions, it was noted that the client does not have a procurement policy in place and that they did not retain quotes from vendors for either transaction. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal procurement requirements. Cause: The District was not aware of the federal requirement. Repeat Finding: 2021-004 Recommendation: We recommend that District implement a procurement policy. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022
Finding: 2022-006 Verification Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 and 10.559 Federal Award Identification Number and Year: 212MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-213-000 Award Period: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During special provisions testing, it was noted that the District did not have a second person reviewing the verifications. Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that two out of two applications required to be verified were not verified by a second person. The sample tested was a statistically valid sample. Effect: District is out of compliance with federal special provision requirements. Cause: The District did not perform the review as eligibility waivers were in place during the year. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding Planned Corrective Action: Contact Person: Randy Bergquist, Superintendent Correction Action Planned: A corrective action plan is in place. Anticipated Completion Date: June 30, 2022