Finding 1164211 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-09

AI Summary

  • Core Issue: The District failed to keep documentation proving that vendors were not suspended or debarred before transactions.
  • Impacted Requirements: Federal guidelines mandate verification of vendor status to avoid engaging with suspended or debarred entities.
  • Recommended Follow-Up: Implement procedures to ensure proper retention of suspension and debarment documentation.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027 and 84.173 Federal Award Identification Number and Year: Unknown - 2025 Pass-Through Agency and Pass-Through Number: Minnesota Department of Education – H027A240087, H173A240086, H181A240029 Award Period: Year Ended June 30, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Condition: The District did not retain documentation to support that vendors were not suspended or debarred. Criteria or specific requirement: Federal guidelines require grant recipients to perform verification procedures that a vendor is not federally suspended or debarred prior to entering into a covered transaction. Questioned costs: None. The vendor was not federally suspended or debarred. Context: During suspension and debarment testing, one of the three covered transactions we tested did not have support retained that the vendor was not federally suspended or debarred. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could results in paying suspended or debarred vendors. This could ultimately result in questioned costs. After review of vendors, it was noted that no vendors used were on the suspension or debarment list. Cause: Oversight. Repeat finding: No. Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

SUSPENSION AND DEBARMENT Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The Cooperative will retain documentation of their review Official Responsible for Ensuring CAP: Amy Stahlback, Controller Planned Completion Date for CAP: June 30, 2026

Categories

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 1164210 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $2.32M
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $64,635
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $64,146
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $15,750