Audit 9837

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Finding: 2023-007 Lack of Proper Review – Allowable Costs Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable. Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During cash disbursement testing, it was noted that that none of the journal entries tested had proper approval. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all federal expenses. These controls should be formally documented to ensure they have ben properly implemented. Context: No journal entries have proper approval. Effect: Lack of proper documentation of controls over allowable costs could result in errors or intentional misrepresentation of allowable federal costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District have someone review journal entries. Views of Responsible Officials: There is no disagreement with the audit finding.

C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Finding: 2023-007 Lack of Proper Review – Allowable Costs Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable. Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During cash disbursement testing, it was noted that that none of the journal entries tested had proper approval. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all federal expenses. These controls should be formally documented to ensure they have ben properly implemented. Context: No journal entries have proper approval. Effect: Lack of proper documentation of controls over allowable costs could result in errors or intentional misrepresentation of allowable federal costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District have someone review journal entries. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

Lack of Proper Review – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Agriculture Pass-Through Number(s): 1-2342-000 Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the paper applications did not contain documentation of review and approval for the applicants final determination into the program. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all eligibility applications. All controls should be formally documented to ensure they have been properly implemented. Context: All paper applications have no review and approval. The samples were statistically valid samples. Effect: Lack of proper documentation of controls over compliance with eligibility requirements could result in errors or intentional misrepresentation of applicants eligibility into the program. This could ultimately result in questioned costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District review paper applications. The District should ensure that these controls are properly documented. Views of Responsible Officials: There is no disagreement with the audit finding.

C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Finding: 2023-007 Lack of Proper Review – Allowable Costs Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable. Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During cash disbursement testing, it was noted that that none of the journal entries tested had proper approval. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all federal expenses. These controls should be formally documented to ensure they have ben properly implemented. Context: No journal entries have proper approval. Effect: Lack of proper documentation of controls over allowable costs could result in errors or intentional misrepresentation of allowable federal costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District have someone review journal entries. Views of Responsible Officials: There is no disagreement with the audit finding.

C. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Finding: 2023-007 Lack of Proper Review – Allowable Costs Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Identification Number and Year: 212MN061N1199- 2023 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Not applicable. Award Period: June 30, 2023 Type of Finding: Material Weakness in Internal Control Over Compliance Condition: During cash disbursement testing, it was noted that that none of the journal entries tested had proper approval. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all federal expenses. These controls should be formally documented to ensure they have ben properly implemented. Context: No journal entries have proper approval. Effect: Lack of proper documentation of controls over allowable costs could result in errors or intentional misrepresentation of allowable federal costs. Cause: Oversight. Repeat Finding: No. Recommendation: We recommend the District have someone review journal entries. Views of Responsible Officials: There is no disagreement with the audit finding.