Audit 42690

FY End
2022-06-30
Total Expended
$792,261
Findings
8
Programs
11
Organization: Kaleidoscope Charter School (MN)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
48236 2022-001 Material Weakness - I
48237 2022-001 Material Weakness - I
48238 2022-001 Material Weakness - I
48239 2022-001 Material Weakness - I
624678 2022-001 Material Weakness - I
624679 2022-001 Material Weakness - I
624680 2022-001 Material Weakness - I
624681 2022-001 Material Weakness - I

Contacts

Name Title Type
CF12LEGDT235 Joe Aliperto Auditee
7634281890 Michelle Hoffman Auditor
No contacts on file

Notes to SEFA

Title: Federal Award Programs Accounting Policies: The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basicfinancial statements of the School. Such expenditures are recognized following the cost principles contained in the UniformGuidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement.Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. The School did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule of Expenditures of Federal Awards presents the activity of federal award programs expended by the School.
Title: Subrecipients Accounting Policies: The expenditures on this schedule are on the modified accrual basis of accounting, which is described in Note 1 to the basicfinancial statements of the School. Such expenditures are recognized following the cost principles contained in the UniformGuidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement.Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. The School did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School does not pass through any federal dollars to subrecipients.

Finding Details

2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: US Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Numbers: 10.553 & 10.555 Federal Award Identification Number and Year: S425V210045 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 212MN061N1199 Award Period: Fiscal Year Ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: ?200.319 requires that all procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section and the School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster program. Additionally, ?200.318 states that the School must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: During our audit we noted that not all of the responses for quotes and documentation of how it was determined to use a certain vendor were retained. Questioned costs: $34,399 for ALN 10.553 and 10.555 Context: 1 of 8 procurements tested was not supported by proper documentation detailing the complete history of the transaction or formal documentation of the controls in place over compliance to ensure the formal documentation of the reasoning for the procurement decision. Cause: The vendor had been used for several years, so any formal documentation of the original procurement decision to start using the vendor was no longer on file with the School. It was corroborated with multiple School staff that the School did compare prices on order guides for the year under audit to other vendors used, but there was no formal documentation of this process. Effect: Lack of proper documentation of procedures and controls related to the procurement could result in improper contracts being paid with federal funds. The School could also possibly award a contract to a vendor that would charge more than other responsible bidders. Repeat Finding: No Recommendation: We recommend the School review its procedures to ensure it retains documentation sufficient to detail the history of all procurements in accordance with the Uniform Guidance. We also recommend the School review its procedures over procurement controls to ensure all controls are also sufficiently documented with records that include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Views of responsible officials: There is no disagreement with the audit finding.