Finding Text
2022-003 Controls over Compliance of Federal Programs Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations ?200.317 through ?200.327. This finding was reported in the prior year audit as finding number 2021-003. The District?s corrective action plan for the prior year audit filed with the Minnesota Department of Education stated that the controls over compliance would be implemented immediately. The District implemented these controls on September 20, 2021. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted one instance of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations ?200.317 through ?200.327 for the entirety of the year ended June 30, 2022. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations ?200.317 through ?200.327 until September 20, 2021. Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor?s recommendations will be adopted.