FAC Explorer

Audit 9199

FY End
2023-06-30
Total Expended
$10.38M
Findings
6
Programs
18
Organization: Independant School District No. 152 (MN)
Year: 2023 Accepted: 2024-01-03
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7102 2023-004 Material Weakness Yes N
7103 2023-004 Material Weakness Yes N
7104 2023-004 Material Weakness Yes N
583544 2023-004 Material Weakness Yes N
583545 2023-004 Material Weakness Yes N
583546 2023-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $2.19M - 0
10.555 National School Lunch Program $1.93M Yes 0
84.425 Education Stabilization Fund $642,585 Yes 1
84.371 Striving Readers $613,079 - 0
10.553 School Breakfast Program $410,149 Yes 0
84.367 Improving Teacher Quality State Grants $236,337 - 0
10.559 Summer Food Service Program for Children $141,399 Yes 0
84.060 Indian Education_grants to Local Educational Agencies $101,522 - 0
84.010 Title I Grants to Local Educational Agencies $82,716 - 0
84.181 Special Education-Grants for Infants and Families $56,074 - 0
84.424 Student Support and Academic Enrichment Program $54,363 - 0
10.582 Fresh Fruit and Vegetable Program $47,957 Yes 0
84.365 English Language Acquisition State Grants $45,249 - 0
84.173 Special Education_preschool Grants $34,336 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,151 - 0
84.002 Adult Education - Basic Grants to States $22,107 - 0
10.649 Pandemic Ebt Administrative Costs $9,315 - 0
32.009 Emergency Connectivity Fund Program $8,758 - 0

Contacts

Name Title Type
Q6H7C5QR4DM7 Denice Sinner Auditee
2182843365 Derek Flanagan Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1- BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2023. The information 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 or changes in fund balance or net position of the District.
Title: NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: NOTE 3- INDIRECT COST RATE Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. The District has not elected to use the 10% de minimis cost rate.
Title: NOTE 4 - FOOD DONATION Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of commodities received and disbursed. At June 30, 2023 the District had food commodities totaling $56,358 in inventory.

Finding Details

Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.
Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.
Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.
Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.
Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.
Finding 2023-004
Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.