Waconia Public Schools ISD #110Local Government

2022-003 ? Procurement/Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Federal Award Identification Number and Year: 222MN061N1199 - 2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0110-000 Award Period: July 1, 2021 - June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance and Compliance Criteria or Specific Requirement: Per 2 CRF section 180.995, the District is required to have a policy in place to ensure entities are properly procuring goods and services and to review vendors showing they are not excluded or debarred for participating in procurement transactions that use federal funds. Condition: During procurement testing, it was noted that 2 of 2 vendors tested did not go through proper procurement procedures. During suspension and debarment testing, it was noted that the review process was not operating effectively. There was no support for review of certification regarding debarment, suspension, and responsibility for 5 of 5 vendors tested. Questioned Costs: Not applicable. Context: 2 of 2 vendors tested did not go through proper procurement procedures and 5 of 5 vendors tested did not have proper evidence of review to ensure they were not suspended or debarred. Cause: Oversight and turnover. Effect: Lack of proper documentation of controls over compliance with procurement and suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. Repeat Finding: Yes ? Finding 2021-003 Recommendation: We recommend the District implement procedures and controls to ensure proper procurement procedures are being followed and vendors are not suspended or debarred. Views of responsible official and planned corrective actions: There is no disagreement with the finding and there is a corrective action plan in place.

2021-002 ? Cash Management Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0110-000 Award Period: July 1, 2020 - June 30, 2021 Type of Finding: ? Material weakness in internal control over compliance Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all cash management draws for the District?s Child Nutrition Cluster program, made via the reporting of meal counts in CLiCS. These controls should be formally documented to ensure they have been properly implemented. Condition: During cash management testing, it was noted that the review process over the CLiCS reports was not operating effectively. There were errors in 3 of the 10 months submitted. Questioned Costs: Not applicable. Context: 3 of 10 months of claim reimbursements were incorrectly filled out and submitted. They were not detected by the reviewer until after the third report of the year was submitted. Cause: The reviewer in the process was not able to review the reports timely and didn?t catch the error immediately. There was not a back up process to ensure another reviewer looked at the reports before they were submitted. Effect: Lack of proper controls over compliance with cash management requirement could result in errors or intentional misrepresentation of the meal counts being reported. This could ultimately result in questioned costs. Repeat Finding: Not applicable. Recommendation: We recommend the District implement procedures and controls to ensure the CLiCS meal counts are accurate before submitting. Views of responsible official and planned corrective actions: There is no disagreement with the finding and there is a corrective action plan in place.

2021-003 ? Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, and 10.559 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0110-000 Award Period: July 1, 2020 - June 30, 2021 Type of Finding: ? Material weakness in internal control over compliance Criteria or Specific Requirement: The District should have controls in place to review vendors to ensure they are not excluded or debarred from participating in procurement transactions that use federal funds. Condition: During suspension and debarment testing, it was noted that the review process was not operating effectively. There was no support provided that 4 of the 5 vendors tested were reviewed for suspension and debarment. Questioned Costs: Not applicable. Context: 4 of 5 vendors tested had no formal review to ensure they were not suspended or debarred. Cause: Oversight. Effect: Lack of proper documentation of controls over compliance with suspension and debarment requirements could result in paying suspended or debarred vendors. This could ultimately result in questioned costs. During testing, it was noted that there were no issues with the actual vendors used by the District. Repeat Finding: Not applicable. Recommendation: We recommend the District implement procedures and controls to ensure vendors are not suspended or debarred. Views of responsible official and planned corrective actions: There is no disagreement with the finding and there is a corrective action plan in place.