FAC Explorer

Audit 55009

FY End
2022-06-30
Total Expended
$1.23M
Findings
4
Programs
8
Organization: Beacon Academy (MN)
Year: 2022 Accepted: 2022-12-21
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59598 2022-001 Significant Deficiency - I
59599 2022-001 Significant Deficiency - I
636040 2022-001 Significant Deficiency - I
636041 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.559 Summer Food Service Program for Children $346,889 Yes 1
84.425 Education Stabilization Fund $274,140 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $124,373 - 0
84.010 Title I Grants to Local Educational Agencies $115,273 - 0
84.027 Special Education_grants to States $100,615 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $40,497 - 0
10.555 National School Lunch Program $20,943 Yes 1
84.367 Supporting Effective Instruction $20,727 - 0

Contacts

Name Title Type
CENALU3GP1A3 Bridget Peterson Auditee
6124819634 Michelle Hoffman, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards with the exception of Federal Assistance Listing Number 21.027, which follows criteria determined by the Department of Treasury for allowability of costs. Under these principles certain types of expenditures are not allowable or are limited as to reimbursement. 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 activity of the School under programs of the federal government 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 selected portion of the operations of the School it is not intended to and does not present the financial position or changes in net position of the School.

Finding Details

Finding 2022-001
Type of Finding: SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL COMPLIANCE AND OTHER MATTERS ? CHILD NUTRITION CLUSTER Condition: During our audit we noted no formal record was retained of a comparison of rates or prices for a Region 1 hosting service charged to the Food Service Fund. We also noted that the invoice was incorrectly coded to the Food Service Fund and was subsequently moved to the General Fund. Criteria: The School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster programs. This includes approving all purchases and performing a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. Effect: There was a procurement purchase made that did not have proper documentation retained to document the cost analysis performed. The purchase was also determined to not be allowable for the Food Service Fund. Cause: The School booked the reversal of a prepaid expenditure from fiscal year 2021 into the Food Service Fund, when it should have been booked into the General Fund. This was not caught during the year-end reconciliation process, journal entry approval process, or procurement process. Questioned costs: $5,512 ? Known Questioned Costs Context: One of the two contracts tested did not have supporting documentation following procurement guidelines, and also wasn?t allowable per the grant. The sample was a statistically valid sample. Recommendation: We recommend that the School develop internal controls to properly review and approve all expenditures that go into the Food Service Fund. In addition, we recommend that if there is purchase with a vendor over the School?s micro-purchase threshold of $3,000 that the procurement policy is followed and documentation is maintained to document the cost analysis performed. Prior Year Finding? No Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Type of Finding: SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL COMPLIANCE AND OTHER MATTERS ? CHILD NUTRITION CLUSTER Condition: During our audit we noted no formal record was retained of a comparison of rates or prices for a Region 1 hosting service charged to the Food Service Fund. We also noted that the invoice was incorrectly coded to the Food Service Fund and was subsequently moved to the General Fund. Criteria: The School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster programs. This includes approving all purchases and performing a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. Effect: There was a procurement purchase made that did not have proper documentation retained to document the cost analysis performed. The purchase was also determined to not be allowable for the Food Service Fund. Cause: The School booked the reversal of a prepaid expenditure from fiscal year 2021 into the Food Service Fund, when it should have been booked into the General Fund. This was not caught during the year-end reconciliation process, journal entry approval process, or procurement process. Questioned costs: $5,512 ? Known Questioned Costs Context: One of the two contracts tested did not have supporting documentation following procurement guidelines, and also wasn?t allowable per the grant. The sample was a statistically valid sample. Recommendation: We recommend that the School develop internal controls to properly review and approve all expenditures that go into the Food Service Fund. In addition, we recommend that if there is purchase with a vendor over the School?s micro-purchase threshold of $3,000 that the procurement policy is followed and documentation is maintained to document the cost analysis performed. Prior Year Finding? No Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Type of Finding: SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL COMPLIANCE AND OTHER MATTERS ? CHILD NUTRITION CLUSTER Condition: During our audit we noted no formal record was retained of a comparison of rates or prices for a Region 1 hosting service charged to the Food Service Fund. We also noted that the invoice was incorrectly coded to the Food Service Fund and was subsequently moved to the General Fund. Criteria: The School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster programs. This includes approving all purchases and performing a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. Effect: There was a procurement purchase made that did not have proper documentation retained to document the cost analysis performed. The purchase was also determined to not be allowable for the Food Service Fund. Cause: The School booked the reversal of a prepaid expenditure from fiscal year 2021 into the Food Service Fund, when it should have been booked into the General Fund. This was not caught during the year-end reconciliation process, journal entry approval process, or procurement process. Questioned costs: $5,512 ? Known Questioned Costs Context: One of the two contracts tested did not have supporting documentation following procurement guidelines, and also wasn?t allowable per the grant. The sample was a statistically valid sample. Recommendation: We recommend that the School develop internal controls to properly review and approve all expenditures that go into the Food Service Fund. In addition, we recommend that if there is purchase with a vendor over the School?s micro-purchase threshold of $3,000 that the procurement policy is followed and documentation is maintained to document the cost analysis performed. Prior Year Finding? No Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Type of Finding: SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL COMPLIANCE AND OTHER MATTERS ? CHILD NUTRITION CLUSTER Condition: During our audit we noted no formal record was retained of a comparison of rates or prices for a Region 1 hosting service charged to the Food Service Fund. We also noted that the invoice was incorrectly coded to the Food Service Fund and was subsequently moved to the General Fund. Criteria: The School should have controls in place to ensure compliance with procurement requirements of the Child Nutrition Cluster programs. This includes approving all purchases and performing a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. Effect: There was a procurement purchase made that did not have proper documentation retained to document the cost analysis performed. The purchase was also determined to not be allowable for the Food Service Fund. Cause: The School booked the reversal of a prepaid expenditure from fiscal year 2021 into the Food Service Fund, when it should have been booked into the General Fund. This was not caught during the year-end reconciliation process, journal entry approval process, or procurement process. Questioned costs: $5,512 ? Known Questioned Costs Context: One of the two contracts tested did not have supporting documentation following procurement guidelines, and also wasn?t allowable per the grant. The sample was a statistically valid sample. Recommendation: We recommend that the School develop internal controls to properly review and approve all expenditures that go into the Food Service Fund. In addition, we recommend that if there is purchase with a vendor over the School?s micro-purchase threshold of $3,000 that the procurement policy is followed and documentation is maintained to document the cost analysis performed. Prior Year Finding? No Views of responsible officials: There is no disagreement with the audit finding.