ISD #2149 Minnewaska Public SchoolsLocal Government

Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.582, and 10.555 Federal Award Identification Number and Year: 1-2149-000, 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number: 1-2149-000 Award Period: June 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The District should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that the District did not have adequate internal controls designed to ensure vendors were not suspended or debarred. Questioned costs: None Context: During our testing, it was noted that the District was not reviewing vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. Cause: Lack of management oversight. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the District design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of responsible officials: There is no disagreement with the audit finding.

Audit Finding 2021-003 ? Child Nutrition Cluster (CFDA 10.555, 10.582, 10.559,): Grant Period ? Year Ended June 30, 2021, Department of Agriculture & Department of Education, passed through Minnesota Department of Education (New Finding) Criteria: A good system of internal control requires an adequate segregation of duties so that no one individual has incompatible responsibilities. No one person should have more than one duty relating to the authorization (approval), custody of assets (check signers), record keeping, and reconciliation function. This should be documented in a written policy. Condition: The District does have adequate segregation of accounting duties in a related written policy, but with the new expectations related to the summer food service program and how quickly things changed and evolved, the written policy did not keep up with the practice. . Context: This finding impacts the internal control for all significant accounting functions. Effect: Inadequate segregation of duties could adversely affect the District's ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Cause: Due to programming and personnel changes and circumstances of health & civic duties at times one person is doing all the accounting functions of cash receipts, disbursements & journal entries. Questioned Costs: None Recommendation: With the planned hiring of an additional office staff person the accounting functions should be reviewed to determine if additional segregation of duties is feasible and to improve the efficiency and effectiveness of financial management and financial statement accuracy for the District. The District, if possible, should have a plan in place for temporary absences of current staff. The District should also adopt the policy in writing.

Audit Finding 2019-004-Chlld Nutrition Cluster (CFDA 10.533, 10.555) & Special Ed Cluster (CFDA 84.027, 84.173): Grant Period - Year Ended June 30, 2019, Department of Agriculture & Department of Education, passed through Minnesota Department of Education (Same finding as Prior Year) Criteria: A good system of internal control requires an adequate segregation of duties so that no one individual has incompatible responsibilities. No one person should have more than one duty relating to the authorization (approval). custody of assets (check signers). record keeping. and reconciliation function. This should be documented in a written policy. Condition: The District does not have adequate segregation of accounting duties or related written policy. Context: This finding impacts the internal control for all significant accounting functions. Effect: Inadequate segregation of duties could adversely affect the District's ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Cause: Due to personnel changes and circumstances of health & civic duties at times one person is doing all the accounting functions of cash receipts, disbursements & joumal entries. Questioned Costs: None Recommendation: With the planned hiring of an additional office staff person the accounting functions should be reviewed to determine if additional segregation of duties is feasible and to improve the efficiency and effectiveness of financial management and financial statement accuracy for the District: The District, if possible, should have a plan in place for temporary absences of current staff. The District should also adopt the policy in writing.

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