Minnesota Department of Education ISD #77 ? Mankato (the District) respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT There were no financial statement audit findings during fiscal year 2022. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS Finding 2022 ? 001 ? Child Nutrition Cluster ? Procurement Federal Agency: U.S. Department of Agriculture and U.S. Department of Treasury Federal Program Title: Child Nutrition Cluster and Local Fiscal Recovery Funds Assistance Listing Number: 10.553, 10.555, 10.559 and 21.027 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 1-0077-000 Award Period: Year ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance with Suspension and Debarment Recommendation: We recommend that the District reviews its related policies and procedures to ensure it is retaining Documentation showing that the District crosschecked the vendors with procurements over the threshold of $25,000 at the time of procurement, which could be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA), (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2CFR section 180.300). Views of responsible officials and planned corrective actions: Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: The District will implement the auditor recommendation to ensure it is retaining documentation showing that the District has controls over and is in compliance with procurement requirements. Responsible party: Darcy Stueber, Director of Food Services and Amanda Heilman, Director of Business Services. Planned completion date for corrective action plan: June 30, 2023. Plan to monitor completion of corrective action plan: The Board of Education and Superintendent will monitor the completion of this corrective action plan. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS (CONTINUED) Finding 2022 ? 001 ? State and Local Fiscal Recovery Funds ? Procurement Federal Agency: U.S. Department of the Treasury Federal Program Title: State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Minnesota Department of Treasury Pass-Through Number: not available Award Period: Year ended June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance Recommendation: It is recommended that the District creates some sort of standard procedure or form that indicates what method is being used to track all procured items over the micro-purchase threshold ($10,000) to help formally document of how open competition is being assessed and then retain documentation of any quotes, bids or direct negotiation procedures completed. Views of responsible officials and planned corrective actions: Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: The District will implement the auditor recommendation to ensure it is retaining documentation showing that the District has controls over and is in compliance with procurement requirements. Responsible party: Darcy Stueber, Director of Food Services and Amanda Heilman, Director of Business Services. Planned completion date for corrective action plan: June 30, 2023. Plan to monitor completion of corrective action plan: The Board of Education and Superintendent will monitor the completion of this corrective action plan. FINDINGS?MINNESOTA LEGAL COMPLIANCE FINDINGS Recommendation: We recommend that the District implement controls to ensure that all bills are paid timely and are in compliance with state statutes. Views of responsible officials and planned corrective actions: Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: The District will implement the auditor recommendation to ensure that bills are paid in accordance with timelines specified in state statutes. Responsible party: Amanda Heilman, Director of Business Services. Planned completion date for corrective action plan: June 30, 2023. Plan to monitor completion of corrective action plan: The Board of Education and Superintendent will monitor the completion of this corrective action plan. If the Minnesota Department of Education has questions regarding this plan, please call Amanda Heilman, Director of Business Services, at 507-387-3167.