Finding 1191656 (2025-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-28
Audit: 395508
Organization: Isd 115 Cass Lake-Bena (MN)
Auditor: BRADY MARTZ

AI Summary

  • Issue: Five transactions were found with unallowable food costs under the Child Nutrition Cluster grant.
  • Requirements Impacted: Grant rules specify only fresh fruits, vegetables, and approved dips can be charged.
  • Follow-Up: The District should create and enforce policies to ensure compliance with allowable costs.

Finding Text

Federal Program Child Nutrition Cluster (AL 10.582) Allowable Activities/Costs Criteria Grant requirements state that “Food costs include any fresh fruits, vegetables, or low-fat or fatfree dips”. Condition During transaction testing, we noted 5 transactions that contained unallowable activities/costs, per the “Fresh Fruit and Vegetables” grant requirements. Questioned Costs None Context We haphazardly selected five transactions to test. One of the five transactions contained unallowable food being charged to this grant. Cause Oversight by the District’s staff. Effect The District is not in compliance with grant requirements. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure only allowable activities/costs are being charged against grants. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will implement immediately.

Corrective Action Plan

Contact Person – Sue Chase, Superintendent Corrective Action Plan – The District should implement policies and procedures to ensure only allowable activities/costs are being charged against grants. Completion Date – March 31, 2026

Categories

Allowable Costs / Cost Principles HUD Housing Programs School Nutrition Programs Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.041 IMPACT AID $3.85M
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $573,199
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $550,248
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $313,635
10.553 SCHOOL BREAKFAST PROGRAM $264,066
10.555 NATIONAL SCHOOL LUNCH PROGRAM $50,905
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $45,626
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $36,423
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $31,064
84.358 RURAL EDUCATION $27,825
10.558 CHILD AND ADULT CARE FOOD PROGRAM $25,867
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $15,123
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $8,398