FAC Explorer

Audit 8688

FY End
2023-06-30
Total Expended
$1.53M
Findings
12
Programs
11
Organization: Independent School District #116 (MN)
Year: 2023 Accepted: 2023-12-28
Auditor: Schlenner Wenner & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6720 2023-004 Significant Deficiency - E
6721 2023-005 Significant Deficiency - L
6722 2023-004 Significant Deficiency - E
6723 2023-005 Significant Deficiency - L
6724 2023-004 Significant Deficiency - E
6725 2023-005 Significant Deficiency - L
583162 2023-004 Significant Deficiency - E
583163 2023-005 Significant Deficiency - L
583164 2023-004 Significant Deficiency - E
583165 2023-005 Significant Deficiency - L
583166 2023-004 Significant Deficiency - E
583167 2023-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $654,947 Yes 0
10.555 National School Lunch Program $330,147 Yes 2
84.010 Title I Grants to Local Educational Agencies $147,112 - 0
10.553 School Breakfast Program $128,189 Yes 2
10.559 Summer Food Service Program for Children $106,278 Yes 2
84.027 Special Education_grants to States $45,279 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $35,000 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $29,484 - 0
84.424 Student Support and Academic Enrichment Program $26,279 - 0
84.367 Improving Teacher Quality State Grants $22,766 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
U3MPA1W6KMB3 Melissa Berry Auditee
2187462102 Jon Archer 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% 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. 116 (the District) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of Independent School District No. 116, it is not intended to and does not present the financial position or changes in financial position of Independent School District No. 116.
Title: SUBRECIPIENTS 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District did not pass through any federal funds to subrecipients during the year ended June 30, 2023.
Title: PASS-THROUGH IDENTIFIER 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District's pass-through identifier is unknown.
Title: INVENTORY 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair market value of commodities received and disbursed for the USDA National School Lunch Program Commodities (ALN # 10.559). Revenues and expenditures are recorded when commodities are received.

Finding Details

Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-004
Finding 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.
Finding 2023-005
Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.