Finding 7103 (2023-004)

Department of Education, Passed through Minnesota Department of Education Federal Financial Assistance Listing 84.425 COVID‐19 Education Stabilization Fund, 84.425D FIN 155, 84.425W FIN 159, and 84.425U FIN 160 Special Tests and Provisions Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria ‐ Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ‐ In our testing of Special Tests and Provisions, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses were included in a construction contract and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ‐ Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ‐ Lack of compliance to federal requirements increases the overall risk of non‐compliance. Questioned Costs ‐ None reported. Context/Sampling ‐ All contracts were selected for testing. Repeat Finding from Prior Years ‐ Yes, 2022‐004 Recommendation ‐ Management should establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of responsible officials ‐ There is no disagreement with the finding.