Finding 582596 (2023-007)

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Requirement
F
Questioned Costs
-
Year
2023
Accepted
2023-12-21
Audit: 8014
Organization: Isd# 2167 Lakeview (MN)

AI Summary

  • Core Issue: The District purchased a water heater without prior approval, violating federal regulations.
  • Impacted Requirements: Approval must be obtained for equipment over $5,000 not on the MDE-approved list, as per Title 2 Code of Federal Regulations.
  • Recommended Follow-Up: The District should review and adhere to approval requirements for capital expenditures in the future.

Finding Text

Lack of Approval for School Food Authority Equipment Purchase Criteria: Per Title 2 Code of Federal Regulations Part 225 Appendix B, section 15, the District should have obtained approval for the purchase of property and equipment over $5,000 in which the item was not on the Minnesota Department of Education (MDE)-approved list. Condition: Per MDE if a school food authority chooses to purchase equipment not included on the MDE-approved list, it must submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District did not receive approval before purchase due to urgent need of the water heater purchased. Questioned Costs: There are no questioned costs associated with this finding. Context: The District acquired an asset with federal awards without prior approval of purchase in accordance with the requirements of Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Effect: The District did not meet federal regulations pertaining to the requirement to submit a request for approval to the state agency prior to purchasing the item as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15. Cause: The District should have requested approval from MDE before the water heater was purchased. Recommendation: We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendation will be adopted.

Categories

Procurement, Suspension & Debarment Equipment & Real Property Management

Other Findings in this Audit

  • 6146 2023-005
    Material Weakness Repeat
  • 6147 2023-005
    Material Weakness Repeat
  • 6148 2023-005
    Material Weakness Repeat
  • 6149 2023-005
    Material Weakness Repeat
  • 6150 2023-006
    - Repeat
  • 6151 2023-006
    - Repeat
  • 6152 2023-006
    - Repeat
  • 6153 2023-006
    - Repeat
  • 6154 2023-007
    -
  • 6155 2023-007
    -
  • 582588 2023-005
    Material Weakness Repeat
  • 582589 2023-005
    Material Weakness Repeat
  • 582590 2023-005
    Material Weakness Repeat
  • 582591 2023-005
    Material Weakness Repeat
  • 582592 2023-006
    - Repeat
  • 582593 2023-006
    - Repeat
  • 582594 2023-006
    - Repeat
  • 582595 2023-006
    - Repeat
  • 582597 2023-007
    -

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $275,572
10.555 National School Lunch Program $267,021
84.010 Title I Grants to Local Educational Agencies $62,243
84.358 Rural Education $44,731
10.553 School Breakfast Program $44,680
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $20,000
84.027 Special Education_grants to States $17,498
84.367 Improving Teacher Quality State Grants $10,458
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education_preschool Grants $2,076
21.027 Coronavirus State and Local Fiscal Recovery Funds $2,000
84.048 Career and Technical Education -- Basic Grants to States $1,737
84.181 Special Education-Grants for Infants and Families $1,500
10.649 Pandemic Ebt Administrative Costs $628