Audit 8699

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Activities Allowed or Unallowed; Allowable Costs and Cost Principles Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – During the course of our engagement, we noted ten instances where documentation of changes to contract wage rates or evidence of approved timesheets were not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for expenditures, including payroll transactions. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – $8,419 Context/Sampling – A non‐statistical sample of 60 transactions out of 2,215 total transactions were selected for testing, which accounted for $35,327 of $525,590 of federal program expenditures. Repeat Finding from Prior Year(s) – Yes, 2022‐004 Recommendation – The District should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Special Tests & Provisions: Verification of Free and Reduced Price Applications Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.6a. Condition – During the course of our engagement, we noted the District did not retain proper support for the verification process of free and reduced eligibility. Cause – The District does not have an internal control system designed to review and maintain documentation for verification of eligibility status. Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds and non‐compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – All District verification selections were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure the required verification process is being completed, ensuring proper eligibility status. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.