FAC Explorer

Audit 7715

FY End
2023-06-30
Total Expended
$12.90M
Findings
16
Programs
17
Organization: Independent School District No. 31 (MN)
Year: 2023 Accepted: 2023-12-20
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5709 2023-002 Significant Deficiency - I
5710 2023-002 Significant Deficiency - I
5711 2023-003 Significant Deficiency - AB
5712 2023-003 Significant Deficiency - AB
5713 2023-003 Significant Deficiency - AB
5714 2023-003 Significant Deficiency - AB
5715 2023-003 Significant Deficiency - AB
5716 2023-003 Significant Deficiency - AB
582151 2023-002 Significant Deficiency - I
582152 2023-002 Significant Deficiency - I
582153 2023-003 Significant Deficiency - AB
582154 2023-003 Significant Deficiency - AB
582155 2023-003 Significant Deficiency - AB
582156 2023-003 Significant Deficiency - AB
582157 2023-003 Significant Deficiency - AB
582158 2023-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.75M - 0
84.027 Special Education_grants to States $1.16M Yes 0
10.553 School Breakfast Program $477,600 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $362,392 Yes 1
84.060 Indian Education_grants to Local Educational Agencies $291,328 - 0
84.367 Improving Teacher Quality State Grants $267,029 - 0
10.555 National School Lunch Program $219,107 - 0
84.424 Student Support and Academic Enrichment Program $117,178 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $117,025 - 0
10.559 Summer Food Service Program for Children $75,502 - 0
84.173 Special Education_preschool Grants $39,255 Yes 0
84.196 Education for Homeless Children and Youth $34,634 - 0
84.181 Special Education-Grants for Infants and Families $30,441 - 0
84.425 Education Stabilization Fund $21,791 Yes 1
10.582 Fresh Fruit and Vegetable Program $17,624 - 0
15.130 Indian Education_assistance to Schools $13,472 - 0
84.048 Career and Technical Education -- Basic Grants to States $13,273 - 0

Contacts

Name Title Type
U8CLE8T1LY66 Ashley Eastridge Auditee
2183333100 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the “Schedule”) are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Bemidji Area Schools has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the federal award activity of Bemidji Area Schools under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Bemidji Area Schools, it is not intended to and does not present the financial position or changes in net position of Bemidji Area Schools.
Title: COMMODITY DISTRIBUTION Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the “Schedule”) are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Bemidji Area Schools has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and disbursed.
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the “Schedule”) are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Bemidji Area Schools has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All pass-through entities listed above use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the “Schedule”) are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Bemidji Area Schools has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During 2023, the District did not pass any federal money to subrecipients.

Finding Details

Finding 2023-002
Federal Program 21.027 – Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition We noted during testing that the only 2 vendors who qualified for suspension and debarment testing, were not checked for suspension or debarment. Cause Management oversight. Questioned Costs None Context The District did not ensure they were entering into covered transactions with vendors who do not have an active exclusion from federal status. Effect The District was not in compliance with Uniform Guidance and had an increased risk of entering into a covered transaction with a vendor who has an active exclusion of federal funds. Repeat Finding No Recommendation The District should document all covered vendors used to ensure suspension and debarment requirements are met. Views of Responsible Officials The District will ensure all covered vendors meet the requirements of suspension and debarment.
Finding 2023-002
Federal Program 21.027 – Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition We noted during testing that the only 2 vendors who qualified for suspension and debarment testing, were not checked for suspension or debarment. Cause Management oversight. Questioned Costs None Context The District did not ensure they were entering into covered transactions with vendors who do not have an active exclusion from federal status. Effect The District was not in compliance with Uniform Guidance and had an increased risk of entering into a covered transaction with a vendor who has an active exclusion of federal funds. Repeat Finding No Recommendation The District should document all covered vendors used to ensure suspension and debarment requirements are met. Views of Responsible Officials The District will ensure all covered vendors meet the requirements of suspension and debarment.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-002
Federal Program 21.027 – Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition We noted during testing that the only 2 vendors who qualified for suspension and debarment testing, were not checked for suspension or debarment. Cause Management oversight. Questioned Costs None Context The District did not ensure they were entering into covered transactions with vendors who do not have an active exclusion from federal status. Effect The District was not in compliance with Uniform Guidance and had an increased risk of entering into a covered transaction with a vendor who has an active exclusion of federal funds. Repeat Finding No Recommendation The District should document all covered vendors used to ensure suspension and debarment requirements are met. Views of Responsible Officials The District will ensure all covered vendors meet the requirements of suspension and debarment.
Finding 2023-002
Federal Program 21.027 – Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition We noted during testing that the only 2 vendors who qualified for suspension and debarment testing, were not checked for suspension or debarment. Cause Management oversight. Questioned Costs None Context The District did not ensure they were entering into covered transactions with vendors who do not have an active exclusion from federal status. Effect The District was not in compliance with Uniform Guidance and had an increased risk of entering into a covered transaction with a vendor who has an active exclusion of federal funds. Repeat Finding No Recommendation The District should document all covered vendors used to ensure suspension and debarment requirements are met. Views of Responsible Officials The District will ensure all covered vendors meet the requirements of suspension and debarment.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.
Finding 2023-003
Federal Program 84.425 – Education Stabilization Fund Allowable Costs/Activities Allowed Criteria The District is required to maintain internal controls at a level where proper review and approval of journal entries are met. Condition We tested 40 transactions and in the 40 transactions, 20 of these transactions, which came from 5 journal entries, which we noted were not approved by an individual outside of the journal entry preparer. Cause The District experienced turnover in the accounting department. Questioned Costs None Context The District did not ensure journal entries were reviewed and approved by a separate individual. Effect The District was had an increased risk of improper journal entries being made to federal funds. Repeat Finding No Recommendation The District should ensure all journal entries are reviewed and approved. Views of Responsible Officials The District will ensure all journal entries are reviewed and approved.