FAC Explorer

Audit 4067

FY End
2023-06-30
Total Expended
$5.78M
Findings
8
Programs
16
Organization: Special School District No. 6 (MN)
Year: 2023 Accepted: 2023-11-26
Auditor: Malloy Montague Karnowski Radosevich & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2375 2023-002 Material Weakness - B
2376 2023-002 Material Weakness - B
2377 2023-002 Material Weakness - B
2378 2023-002 Material Weakness - B
578817 2023-002 Material Weakness - B
578818 2023-002 Material Weakness - B
578819 2023-002 Material Weakness - B
578820 2023-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.19M - 0
84.010 Title I Grants to Local Educational Agencies $520,340 - 0
10.553 School Breakfast Program $341,021 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $236,196 Yes 0
84.027 Special Education_grants to States $170,157 Yes 1
84.367 Supporting Effective Instruction State Grants $80,357 - 0
93.575 Child Care and Development Block Grant $68,712 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $58,234 - 0
10.559 Summer Food Service Program for Children $50,387 - 0
84.365 English Language Acquisition State Grants $30,492 - 0
84.181 Special Education-Grants for Infants and Families $25,812 - 0
84.002 Adult Education - Basic Grants to States $17,407 - 0
84.425 Education Stabilization Fund $8,357 Yes 0
84.173 Special Education_preschool Grants $6,871 Yes 1
10.649 Pandemic Ebt Administrative Costs $3,135 - 0
84.048 Career and Technical Education -- Basic Grants to States $3,023 - 0

Contacts

Name Title Type
LXH6HYN5NHG6 Brady Hoffman Auditee
6514579428 Aaron Nielsen Auditor
No contacts on file

Notes to SEFA

Title: Additional Note #1 Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the District’s basic financial statements. The pass-through entities listed above use the same federal Assistance Listing Numbers (ALN) as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate. The District had $32,821 transferred into Title I federal ALN 84.010 from other Title programs.
Title: Additional Note #2 Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the District’s basic financial statements. The pass-through entities listed above use the same federal Assistance Listing Numbers (ALN) as the federal grantors to identify these grants, and have not assigned any additional identifying numbers. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis indirect cost rate. The District had $159,228 of noncash assistance included in the National School Lunch Program, federal ALN 10.555.

Finding Details

Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2023-002
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, SPECIAL EDUCATION CLUSTER (INCLUDING COVID-19 FUNDING) – FEDERAL ALN 84.027 AND 84.173 2023-002 Internal Control Over Compliance and Material Noncompliance With Federal Allowable Costs Requirements Criteria – 2 CFR § 200.405 specifies a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award in accordance with relative benefits received. This standard is met if the cost is incurred specifically for the award, can be distributed in proportions that may be approximated using reasonable methods, and is necessary to the overall operation of the District and is assignable in part to the federal award in accordance with the principles in 2 CFR 200 Subpart E – Cost Principles. Condition – During our audit, we noted that the District did not have adequate internal controls in place to ensure all salary costs charged to the federal special education cluster programs met the standard for an allowable or allocable cost as defined by the U.S. Office of Management and Budget’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) allowable costs standards, which resulted in a reportable instance of noncompliance. Questioned Costs – $250,383. Context – For four of four employees tested, the District had charged portions of the individuals’ salaries to the program, but did not have sufficient time and effort documentation to support the amount of cost allocated to the programs. This was not a statistically valid sample. Repeat Finding – This is a current year finding. Cause – This was an oversight by district personnel. Effect – This is a potential violation of the award agreement. Recommendation – We recommend that the District review its internal control procedures relating to allowable costs for its federal special education cluster programs. View of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with the Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding.