FAC Explorer

Audit 49052

FY End
2022-06-30
Total Expended
$7.10M
Findings
6
Programs
14
Organization: Independent School District 544 (MN)
Year: 2022 Accepted: 2022-11-16
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51363 2022-003 Material Weakness - A
51364 2022-003 Material Weakness - A
51365 2022-003 Material Weakness - A
627805 2022-003 Material Weakness - A
627806 2022-003 Material Weakness - A
627807 2022-003 Material Weakness - A

Programs

ALN Program Spent Major Findings
10.555 School Breakfast Program $1.37M - 0
32.009 Emergency Connectivity Fund Program $437,675 - 0
84.010 Title I Grants to Local Educational Agencies $431,434 - 0
10.553 School Breakfast Program $377,842 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $159,109 - 0
10.559 Summer Food Service Program for Children $120,212 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $94,316 - 0
84.367 Improving Teacher Quality State Grants $76,051 - 0
10.555 National School Lunch Program $45,215 - 0
84.424 Student Support and Academic Enrichment Program $24,383 - 0
84.425 Education Stabilization Fund $9,502 Yes 1
84.027 Special Education_grants to States $6,496 - 0
84.365 English Language Acquisition State Grants $5,464 - 0
10.649 School Breakfast Program $1,775 - 0

Contacts

Name Title Type
JPSJLM1XLWQ9 Renae MacHeledt Auditee
2189980544 Brian Stavenger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Whenapplicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financialassistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activityof the District under programs of the federal government for the year ended June 30, 2022. The information ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the schedule presents only a selected portion of the operations of the District, it is not intended to anddoes not present the financial position or changes in net position of the District.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Whenapplicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financialassistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of commodities received anddisbursed. At June 30, 2022 the District had food commodities totaling $7,682 in inventory.

Finding Details

Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 84.425C/D/W Education Stabilization Fund Activities Allowed or Unallowed Material Weakness in Internal Control over Compliance Criteria ? A good system of internal accounting control contemplates an adequate system for review of account coding for expenditures of federal awards. Condition ? During the course of our engagement, we noted inconsistencies in use of account codes for federal expenditures and proposed material audit adjustments that were not identified as a result of the District?s existing internal controls over compliance, and therefore could have resulted in a material misstatement of the District?s schedule of expenditures of federal awards. Cause ? The District does not have an internal control system designed to review account coding for expenditures of federal awards. Effect ? This deficiency could result in a misstatement to the financial statements and noncompliance with federal awards that would not be prevented or detected. Questioned Costs ? None reported Context/Sampling ? A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $704,562 of $3,722,843 of federal program expenditures. Repeat Finding from Prior Year(s) ? No Recommendation ? A thorough review and reconciliation of accounts used for expenditures of federal awards should take place prior to the beginning of the audit. This review should be done at both the accounting staff and accounting supervisor levels. Views of Responsible Officials ? There is no disagreement with the audit finding.