Finding 6154 (2023-007)

-
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.

Corrective Action Plan

Lack of Approval for School Food Authority Equipment Purchase Auditor Recommendation We recommend that the District review requirements of the school food authorities for the purchase of capital expenditures. Corrective Action Plan (CAP) 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Action Planned in Response to Finding Chris Fenske (Superintendent) will review requirements prior to purchases of capital expenditures being coded to food service. 3. Official Responsible for Insuring CAP Chris Fenske is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP This plan has been and will continue to be implemented during the 2023-2024 fiscal year. 5. Plan to Monitor Completion of CAP Chris Fenske and the School Board will be monitoring this corrective action plan.

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
  • 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
  • 582596 2023-007
    -
  • 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