Finding 1168912 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-13

AI Summary

  • Core Issue: The District failed to document the review and approval of 1 out of 4 reports related to the Child Nutrition Cluster, which is a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations § 200.303, which mandates effective internal controls for federal awards.
  • Recommended Follow-Up: The District should reinforce procedures to ensure all reports are properly reviewed and documented to prevent future lapses.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559 Federal Award Identification Number and Year: 252MN061N1199 – 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2859-000 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Related to reporting requirements of the Child Nutrition Cluster, there should be a documented control in place to ensure all reports have proper documented review and approval prior to submission. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing it was noted that, for 1 of 4 reports tested, the District was not able to provide any documentation of the review performed to ensure they are meeting federal requirements surrounding reporting. Questioned costs: None Context: 1 of 4 reports selected for testing were missing documentation of the review and approval. Cause: The District has a procedure in place to address this finding. However, due to turnover, this procedure was missed on one of the reports tested. Effect: It is possible that if there were errors on the report they would not be caught by the internal control. Repeat finding: No Recommendation: The District ensures their key controls are operating effectively and documents the review and approval of all the reports. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

CHILD NUTRITION CLUSTER - REPORTING Recommendation: Management should ensure their key controls are operating effectively and they should document the review and approval of all the reports. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Action planned/taken in response to finding: The District will evaluate its control processes in place prior to meal claims being reported to the state for reimbursement and ensure they properly review and approve the claims being reported prior to reporting them and document that approval. The District also understands the person reviewing and approving the claims to be reported should be different from the individual compiling that amount to be reported so two individuals are involved in the process. Name of the contact person responsible for corrective action: Trisha Zajicek, Director of Finance Planned completion date for corrective action plan: June 30, 2026

Categories

Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1168907 2025-003
    Material Weakness Repeat
  • 1168908 2025-003
    Material Weakness Repeat
  • 1168909 2025-003
    Material Weakness Repeat
  • 1168910 2025-003
    Material Weakness Repeat
  • 1168911 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $198,462
10.553 SCHOOL BREAKFAST PROGRAM $70,571
84.011 MIGRANT EDUCATION STATE GRANT PROGRAM $57,334
84.027 SPECIAL EDUCATION GRANTS TO STATES $49,024
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $33,538
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $28,465
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $15,404
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $13,483
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $10,042
84.425 EDUCATION STABILIZATION FUND $9,047
10.555 NATIONAL SCHOOL LUNCH PROGRAM $7,034
10.558 CHILD AND ADULT CARE FOOD PROGRAM $2,527