FAC Explorer

Audit 47086

FY End
2022-06-30
Total Expended
$7.75M
Findings
2
Programs
17
Organization: Independent School District No. 199 (MN)
Year: 2022 Accepted: 2023-03-16
Auditor: Malloy Montague Karnowski Radosevich & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43334 2022-002 Material Weakness - I
619776 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.86M Yes 0
10.555 National School Lunch Program $1.57M - 0
84.010 Title I Grants to Local Educational Agencies $640,503 - 0
32.009 Emergency Connectivity Fund Program $393,351 - 0
10.553 School Breakfast Program $392,039 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $217,898 - 0
10.559 Summer Food Service Program for Children $210,363 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $193,800 Yes 1
93.575 Child Care and Development Block Grant $132,434 - 0
84.367 Supporting Effective Instruction State Grants $131,261 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $76,411 - 0
84.365 English Language Acquisition State Grants $38,505 - 0
84.027 Special Education_grants to States $28,509 Yes 0
84.181 Special Education-Grants for Infants and Families $27,017 - 0
84.173 Special Education_preschool Grants $9,372 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $7,003 - 0
10.649 Pandemic Ebt Administrative Costs $6,076 - 0

Contacts

Name Title Type
YLKKLZQK8D26 Heather Aune Auditee
6513067807 William Lauer 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 OMBs 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 Districts 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 auditee did not use the de minimis cost rate. The District had $158,922 of noncash assistance included in the National School Lunch Program, federal ALN 10.555.
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 OMBs 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 Districts 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 auditee did not use the de minimis cost rate. The District transferred $70,489 into Title I ALN 84.010 from other title programs during the year.

Finding Details

Finding 2022-002
MATERIAL WEAKNESSES IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE ? U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID 19 ? EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) ? FEDERAL ALN 93.323 2022-002 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to its COVID 19 ? Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) federal program. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its COVID 19 ? Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $70,044. Context ? For one of two vendors tested, the District had not awarded a contract based on two or more quotations as required by the Uniform Guidance procurement standards where the value of the goods acquired exceeded the District?s established micro-purchase threshold. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? The District attempted to obtain more than one quote, but was unsuccessful and did not retain documentation of its efforts. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on quotations for the purchase of goods or services that exceed the District?s micro-purchase threshold, but not the simplified acquisition threshold. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District will review its procedures relating to procurement for its federal programs and will ensure that quotations are obtained when required and that adequate documentation is retained. The District has separately issued a Corrective Action Plan related to this finding.
Finding 2022-002
MATERIAL WEAKNESSES IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE ? U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID 19 ? EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) ? FEDERAL ALN 93.323 2022-002 Internal Control Over Compliance and Noncompliance With Federal Procurement Requirements Criteria ? 2 CFR ? 200.320 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including procurement requirements applicable to its COVID 19 ? Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) federal program. Condition ? During our audit, we noted that the District did not have sufficient controls in place within its COVID 19 ? Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) federal program to ensure compliance with federal procurement requirements related to methods of procurement. Questioned Costs ? $70,044. Context ? For one of two vendors tested, the District had not awarded a contract based on two or more quotations as required by the Uniform Guidance procurement standards where the value of the goods acquired exceeded the District?s established micro-purchase threshold. This was not a statistically valid sample. Repeat Finding ? This is a current year finding. Cause ? The District attempted to obtain more than one quote, but was unsuccessful and did not retain documentation of its efforts. Effect ? Noncompliance with the procurement requirements could result in the District expending federal funds inappropriately or utilizing vendors that are not eligible to be parties to such transactions, which could be viewed as a violation of the award agreement. Recommendation ? We recommend that the District review its internal control procedures relating to procurement for all federal programs. Internal controls should be in place to ensure compliance with federal procurement procedures, including awarding contracts based on quotations for the purchase of goods or services that exceed the District?s micro-purchase threshold, but not the simplified acquisition threshold. View of Responsible Official and Planned Corrective Actions ? The District agrees with the finding. The District will review its procedures relating to procurement for its federal programs and will ensure that quotations are obtained when required and that adequate documentation is retained. The District has separately issued a Corrective Action Plan related to this finding.