FAC Explorer

Finding 6761 (2023-006)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-12-28
Audit: 8699
Organization: Independent School District 2164 (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District lacks an adequate internal control system to ensure program participant eligibility for federal grants.
  • Impacted Requirements: Compliance with federal regulations (7 CFR 245.3 – 7 CFR 245.6) regarding eligibility documentation.
  • Recommended Follow-Up: Review and enhance internal control procedures to ensure proper documentation and review of participant eligibility.

Finding Text

Department of Agriculture, Passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Eligibility Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all program participants are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6. Condition – During the course of our engagement, we noted ten instances where documentation of program eligibility was not maintained. Cause – The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for testing. Repeat Finding from Prior Year(s) – No Recommendation – The District should review internal control procedures to ensure participant applications are being completed and properly reviewed for program eligibility. Supporting documentation should then be maintained once the review is documented and performed. Views of Responsible Officials – There is no disagreement with the audit finding.

Corrective Action Plan

Finding 2023-006 Eligibility – Child Nutrition Cluster Material Weakness in Internal Control Over Compliance and Material Noncompliance Finding Summary: The District does not have an internal control system designed to review and maintain documentation for eligibility of program participants. Responsible Individuals: Shannon Hunstad, Superintendent Corrective Action Plan: The District will review and strengthen the controls surrounding the review and approval of eligibility applications for the Child Nutrition Cluster to ensure they are supported, approved, and accurate. Anticipated Completion Date: June 30, 2024

Categories

Eligibility Material Weakness School Nutrition Programs Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 6757 2023-005
    Material Weakness Repeat
  • 6758 2023-005
    Material Weakness Repeat
  • 6759 2023-005
    Material Weakness Repeat
  • 6760 2023-005
    Material Weakness Repeat
  • 6762 2023-006
    Material Weakness
  • 6763 2023-006
    Material Weakness
  • 6764 2023-006
    Material Weakness
  • 6765 2023-007
    Material Weakness
  • 6766 2023-007
    Material Weakness
  • 6767 2023-007
    Material Weakness
  • 6768 2023-007
    Material Weakness
  • 583199 2023-005
    Material Weakness Repeat
  • 583200 2023-005
    Material Weakness Repeat
  • 583201 2023-005
    Material Weakness Repeat
  • 583202 2023-005
    Material Weakness Repeat
  • 583203 2023-006
    Material Weakness
  • 583204 2023-006
    Material Weakness
  • 583205 2023-006
    Material Weakness
  • 583206 2023-006
    Material Weakness
  • 583207 2023-007
    Material Weakness
  • 583208 2023-007
    Material Weakness
  • 583209 2023-007
    Material Weakness
  • 583210 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $219,417
84.010 Title I Grants to Local Educational Agencies $165,245
10.553 School Breakfast Program $76,418
84.027 Special Education_grants to States $61,212
84.425 Education Stabilization Fund $55,756
10.555 National School Lunch Program $53,046
10.185 Farm to School Grant $30,450
21.027 Coronavirus State and Local Fiscal Recovery Funds $22,578
84.367 Improving Teacher Quality State Grants $14,352
84.181 Special Education-Grants for Infants and Families $10,506
84.173 Special Education_preschool Grants $295