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.