Brainerd Public Schools - ISD 181

Finding: 2022-002 Reporting Federal agency: U.S. Department of Treasury Federal program name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619-2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Unknown Award Period: July1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency 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 reporting. The District should have internal controls designed to ensure compliance with these provisions Condition: During our testing, we noted that the District did not complete one of the two Financial Reporting Forms by the deadline. Instead, an annual, comprehensive Financial Reporting was submitted for the end of year. Questioned Costs: None Context: During our testing, it was noted that the District only submitted one of the two required reports related to the grant. Cause: District management was unaware of the requirement to complete two reports. Effect: District is out of compliance with federal special provision requirements. Repeat Finding: Not a repeat finding. Recommendation: We recommend the District implement procedures and controls in relation to the required Coronavirus State and Local Discal Recovery Funds, to ensure they are completed accurately and timely going forward. Views of Responsible Officials: There is no disagreement with the audit finding

Finding 2022-002 ? Reporting Federal agency: U.S. Department of Treasury Federal program name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2619-2022 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): Unknown Award Period: July1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in internal control over compliance. Corrective Action Plan (CAP): Recommendation: We recommend that the District implement procedures and controls in relation to the required Coronavirus State and Local Fiscal Recovery Funds, to ensure they are completed accurately and timely going forward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement procedures and controls over federal funds to ensure all requirements have been met. Name of the contact person responsible for corrective action: Marci Lord, Director of Business Services. Planned completion date for corrective action plan: June 30, 2023.

Finding 2021-003 ? Reporting Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D Pass-Through Agency: Minnesota Department of Education Pass-Through Agency Number: N/A Award Period: July 1, 2020 ? June 30, 2021 Type of Finding: Significant Deficiency in internal control over compliance. Criteria or Specific Requirement: The District should have controls in place to ensure the accuracy of all reports required to be submitted for the program. These controls should be formally documented to ensure they have been properly implemented. Condition: During reporting testing, it was noted that the review process was not operating effectively. There was no review process completed for the one report that was required to be submitted. Questioned Costs: Not applicable Cause: The District did not formally adopt a plan to review the report before it was submitted. Effect: Lack of proper documentation of controls over compliance with the reporting requirements could result in errors being reported and going undetected or not detected in a timely manner. This could ultimately result in questioned costs. Repeat Finding: No. Recommendation: We recommend that the District implement procedures and controls to ensure the required reports are accurate before submitting. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: There is no disagreement with the finding.

Finding 2021-003 ? Reporting Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425C, 84.425D Pass-Through Agency: Minnesota Department of Education Pass-Through Agency Number: N/A Award Period: July 1, 2020 ? June 30, 2021 Type of Finding: Significant Deficiency in internal control over compliance. Corrective Action Plan (CAP): Recommendation: We recommend that the District implement procedures and controls to ensure the required reports are accurate before submitting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will continue to work towards implementing a review procedure for all federal programs. Name of the contact person responsible for corrective action: Marci Lord, Director of Business Services. Planned completion date for corrective action plan: June 30, 2022.