FAC Explorer

Audit 8014

FY End
2023-06-30
Total Expended
$891,494
Findings
20
Programs
14
Organization: Isd# 2167 Lakeview (MN)
Year: 2023 Accepted: 2023-12-21
Auditor: Hoffman & Brobst Pllp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6146 2023-005 Material Weakness Yes N
6147 2023-005 Material Weakness Yes N
6148 2023-005 Material Weakness Yes N
6149 2023-005 Material Weakness Yes N
6150 2023-006 - Yes I
6151 2023-006 - Yes I
6152 2023-006 - Yes I
6153 2023-006 - Yes I
6154 2023-007 - - F
6155 2023-007 - - F
582588 2023-005 Material Weakness Yes N
582589 2023-005 Material Weakness Yes N
582590 2023-005 Material Weakness Yes N
582591 2023-005 Material Weakness Yes N
582592 2023-006 - Yes I
582593 2023-006 - Yes I
582594 2023-006 - Yes I
582595 2023-006 - Yes I
582596 2023-007 - - F
582597 2023-007 - - F

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $275,572 Yes 2
10.555 National School Lunch Program $267,021 Yes 3
84.010 Title I Grants to Local Educational Agencies $62,243 - 0
84.358 Rural Education $44,731 - 0
10.553 School Breakfast Program $44,680 Yes 3
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $20,000 - 0
84.027 Special Education_grants to States $17,498 - 0
84.367 Improving Teacher Quality State Grants $10,458 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.173 Special Education_preschool Grants $2,076 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $2,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $1,737 - 0
84.181 Special Education-Grants for Infants and Families $1,500 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
LNBNFGFM1TU4 Chris Fenske Auditee
5074235164 Lisa Zmeskal Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – REPORTING ENTITY 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The schedule of expenditures of federal awards presents the activities of federal award programs expended by Independent School District No. 2167, Lakeview, Cottonwood, Minnesota. The District’s reporting entity is defined in Note 1 to the basic financial statements.
Title: NOTE B – 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, 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 the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Independent School District No. 2167, Lakeview, Cottonwood, Minnesota.
Title: NOTE C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: NOTE D – DE MINIMIS INDIRECT COST RATE 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE E – LOAN PROGRAMS AND LOAN GUARANTEE PROGRAMS 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, did not provide loan programs or loan guarantee programs, accordingly, there are no year-end loan balances.
Title: NOTE F – DONATED FEDERALLY FUNDED PERSONAL PROTECTIVE EQUIPMENT 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Independent School District No. 2167, Lakeview, Cottonwood, Minnesota, did not receive any donated federally funded personal protective equipment.

Finding Details

Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-007
Lack of Approval for School Food Authority Equipment Purchase Criteria: Per Title 2 Code of Federal Regulations Part 225 Appendix B, section 15, the District should have obtained approval for the purchase of property and equipment over $5,000 in which the item was not on the Minnesota Department of Education (MDE)-approved list. Condition: Per MDE if a school food authority chooses to purchase equipment not included on the MDE-approved list, it must submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District did not receive approval before purchase due to urgent need of the water heater purchased. Questioned Costs: There are no questioned costs associated with this finding. Context: The District acquired an asset with federal awards without prior approval of purchase in accordance with the requirements of Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Effect: The District did not meet federal regulations pertaining to the requirement to submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Cause: The District should have requested approval from MDE before the water heater was purchased. Recommendation: We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendation will be adopted.
Finding 2023-007
Lack of Approval for School Food Authority Equipment Purchase Criteria: Per Title 2 Code of Federal Regulations Part 225 Appendix B, section 15, the District should have obtained approval for the purchase of property and equipment over $5,000 in which the item was not on the Minnesota Department of Education (MDE)-approved list. Condition: Per MDE if a school food authority chooses to purchase equipment not included on the MDE-approved list, it must submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District did not receive approval before purchase due to urgent need of the water heater purchased. Questioned Costs: There are no questioned costs associated with this finding. Context: The District acquired an asset with federal awards without prior approval of purchase in accordance with the requirements of Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Effect: The District did not meet federal regulations pertaining to the requirement to submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Cause: The District should have requested approval from MDE before the water heater was purchased. Recommendation: We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendation will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-005
Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-006
Procurement Policy Criteria: Per Title 2 U.S. Code of Federal Regulations §200.318, the District must have and use documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Condition: The District did not implement a procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. This finding was reported in the previous year as number 2022-008. Questioned Costs: There are no questioned costs associated with this finding. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT (Cont’d) PREVIOUSLY REPORTED ITEMS NOT RESOLVED (Cont’d) 2023-006 Procurement Policy (Cont’d) Context: The District acquired property and services with federal awards prior to adopting documented procurement procedures in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Effect: The District did not meet federal regulations pertaining to the requirement to have and use documented procurement procedures for the acquisition of property or services consistent with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Cause: The District did not implement a written procurement policy in accordance with the requirements of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327, until October 17, 2022. Recommendation: We recommend that the District continue to follow the written procurement policy adopted on October 17, 2022, to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.
Finding 2023-007
Lack of Approval for School Food Authority Equipment Purchase Criteria: Per Title 2 Code of Federal Regulations Part 225 Appendix B, section 15, the District should have obtained approval for the purchase of property and equipment over $5,000 in which the item was not on the Minnesota Department of Education (MDE)-approved list. Condition: Per MDE if a school food authority chooses to purchase equipment not included on the MDE-approved list, it must submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District did not receive approval before purchase due to urgent need of the water heater purchased. Questioned Costs: There are no questioned costs associated with this finding. Context: The District acquired an asset with federal awards without prior approval of purchase in accordance with the requirements of Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Effect: The District did not meet federal regulations pertaining to the requirement to submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Cause: The District should have requested approval from MDE before the water heater was purchased. Recommendation: We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendation will be adopted.
Finding 2023-007
Lack of Approval for School Food Authority Equipment Purchase Criteria: Per Title 2 Code of Federal Regulations Part 225 Appendix B, section 15, the District should have obtained approval for the purchase of property and equipment over $5,000 in which the item was not on the Minnesota Department of Education (MDE)-approved list. Condition: Per MDE if a school food authority chooses to purchase equipment not included on the MDE-approved list, it must submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District did not receive approval before purchase due to urgent need of the water heater purchased. Questioned Costs: There are no questioned costs associated with this finding. Context: The District acquired an asset with federal awards without prior approval of purchase in accordance with the requirements of Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Effect: The District did not meet federal regulations pertaining to the requirement to submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Cause: The District should have requested approval from MDE before the water heater was purchased. Recommendation: We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendation will be adopted.