Finding 1165835 (2025-004)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: The District failed to keep proper documentation verifying that vendors were checked against the federal suspended or debarred listing before payments.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls related to compliance with suspension and debarment requirements.
  • Recommended Follow-Up: The District should implement a system to ensure records are maintained confirming that all vendors are not on the suspended or debarred list.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 & 10.555 Federal Award Identification Number and Year: 1-0361-000, 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0361-000. Award Period: June 30, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During testing of vendor verification, it was noted that proper documentation was not kept to support that the vendors were checked via the federal website to not be on the suspended or debarred listing before payment was made. Criteria or Specific Requirement: Proper records were not retained as required by suspension and debarment requirements. Questioned Costs: None. Context: The vendors tested did not have documentation retained to ensure that they were not on the suspended and debarred listing. Effect: Lack of controls to ensure that vendors are not suspended or debarred could result in the District paying suspended or debarred vendors. Cause: District turnover. Repeat Finding: No. Recommendation: We recommend the District maintain records that all vendors are not on the suspended or debarred listing. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the District maintain records that all vendors are not on the suspended or debarred listing. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure records are retained for verification compliance. Name of the contact person responsible for corrective action: Lauren Syrup, Business Manager Planned completion date for corrective action plan: June 30, 2026

Categories

Procurement, Suspension & Debarment School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 1165830 2025-003
    Material Weakness Repeat
  • 1165831 2025-003
    Material Weakness Repeat
  • 1165832 2025-003
    Material Weakness Repeat
  • 1165833 2025-004
    Material Weakness Repeat
  • 1165834 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $408,927
10.555 NATIONAL SCHOOL LUNCH PROGRAM $233,362
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $137,239
84.027 SPECIAL EDUCATION GRANTS TO STATES $135,744
10.553 SCHOOL BREAKFAST PROGRAM $79,113
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $40,512
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $22,138
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $6,999