FAC Explorer

Audit 9447

FY End
2023-06-30
Total Expended
$15.88M
Findings
4
Programs
15
Organization: Southwest and West Central Service Cooperative (MN)
Year: 2023 Accepted: 2024-01-04
Auditor: Abdo LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7277 2023-001 Significant Deficiency Yes AB
7278 2023-002 Significant Deficiency - AB
583719 2023-001 Significant Deficiency Yes AB
583720 2023-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $1.20M Yes 1
84.027 Special Education_grants to States American Rescue Plan (arp) $1.14M - 0
84.048 Career and Technical Education -- Basic Grants to States $662,413 Yes 1
84.173 Special Education_preschool Grants $335,948 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $324,943 - 0
84.411 Education Innovation Research $302,049 - 0
84.027 Special Education_grants to States $268,221 - 0
84.367 Supporting Effective Instruction State Grants $166,400 - 0
84.181 Special Education-Grants for Infants and Families $143,306 - 0
84.027 Special Education_grants to States American Rescue Plan (arp) Coordinated Early Invention Services $130,016 - 0
84.173 American Rescue Plan (arp) Preschool Grants for Children with Disabilities $95,277 - 0
84.181 Regional Ieic Grant for Children Ages Birth to 2 $40,641 - 0
32.009 Emergency Connectivity Fund Program $36,750 - 0
84.184 School Safety National Activities $2,886 - 0
84.425 Education Stabilization Fund $1,746 Yes 0

Contacts

Name Title Type
HNKUBDM7VKF3 Tegan Gillund Auditee
5075372284 Thomas Olinger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2023, the Cooperative did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the Southwest and West Central Service Cooperative, Marshall, Minnesota (the Cooperative). The Cooperative's reporting entity is defined in Note 1A to the Cooperative's financial statements. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly from Federal agencies as well as Federal awards passed through other government agencies are included on the schedule.
Title: Pass-Through Entity Identifying Numbers Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2023, the Cooperative did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Pass-through entity identifying numbers, if any, are presented where available.
Title: Subrecipients Accounting Policies: Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit- Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2023, the Cooperative did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Of the Federal expenditures presented in the schedule, the Cooperative provided Federal awards to subrecipients.

Finding Details

Finding 2023-001
U.S. Department of Education Passed through State of Minnesota Title I Grants to Local Education Agencies Activities Allowed or Unallowed and Allowable Cost/Cost Principles Deficiency in Internal Control over Compliance Employee Credit Card Transactions Condition: During our audit, it came to our attention that employee credit card transactions were not included in monthly Board packets. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Cause: The report of all Cooperative disbursements that is given to the Board at each meeting did not include employee credit card transactions. Effect: The Board is unable to review employee credit card purchases thus increasing the risk of improper purchases. Recommendation: We recommend that the bills report be reviewed before every meeting to ensure all bills, EFT’s, and credit card purchases are included. Management Response: The Cooperative corrected this deficiency in February of fiscal year 2023.
Finding 2023-002
U.S. Department of Education Passed through State of Minnesota Career and Technical Education Reporting Deficiency in Internal Control over Compliance Internal Controls Over Federal Program Reporting Condition: During our audit, it came to our attention that reports submitted as part of the federal CTE program were not being reviewed by a party other than the preparer. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting. Cause: There was no approver on quarterly reports other than the preparer sign off. Effect: There is not sufficient oversight of federal reports. Recommendation: We recommend that someone other than the preparer review the CTE quarterly reports for accuracy. Management Response: Management had a turnover in staff and was unable to fill the Accounting Supervisor/Specialist position which involved preparing and submitting by the same staff member. The position was filled as of December 4, 2023 and that individual will be preparing the reports and reviewed by the Director of Finance.
Finding 2023-001
U.S. Department of Education Passed through State of Minnesota Title I Grants to Local Education Agencies Activities Allowed or Unallowed and Allowable Cost/Cost Principles Deficiency in Internal Control over Compliance Employee Credit Card Transactions Condition: During our audit, it came to our attention that employee credit card transactions were not included in monthly Board packets. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Cause: The report of all Cooperative disbursements that is given to the Board at each meeting did not include employee credit card transactions. Effect: The Board is unable to review employee credit card purchases thus increasing the risk of improper purchases. Recommendation: We recommend that the bills report be reviewed before every meeting to ensure all bills, EFT’s, and credit card purchases are included. Management Response: The Cooperative corrected this deficiency in February of fiscal year 2023.
Finding 2023-002
U.S. Department of Education Passed through State of Minnesota Career and Technical Education Reporting Deficiency in Internal Control over Compliance Internal Controls Over Federal Program Reporting Condition: During our audit, it came to our attention that reports submitted as part of the federal CTE program were not being reviewed by a party other than the preparer. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting. Cause: There was no approver on quarterly reports other than the preparer sign off. Effect: There is not sufficient oversight of federal reports. Recommendation: We recommend that someone other than the preparer review the CTE quarterly reports for accuracy. Management Response: Management had a turnover in staff and was unable to fill the Accounting Supervisor/Specialist position which involved preparing and submitting by the same staff member. The position was filled as of December 4, 2023 and that individual will be preparing the reports and reviewed by the Director of Finance.