INDEPENDENT SCHOOL DISTRICT NO. 547Local Government

Department of Agriculture, passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Procurement, Suspension, and Debarment Material Weakness in Internal Control Over Compliance Criteria - Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition - In our testing of procurement, suspension, and debarment it was identified that there was no review of vendors to ensure that they are not suspended or debarred before purchases are made. Cause - Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect - A lack of compliant policies increases the overall risk of non-compliance. Questioned Costs - None reported Context/Sampling - Overall procurement policy. Repeat Finding from Prior Years - No Recommendation - We recommend that management establish a formal process to review vendors before purchases are made to ensure they are not suspended or debarred and are in compliance with the Uniform Guidance and 2 CFR sections 200.318 through 200.326. Views of Responsible Officials - There is no disagreement with the audit finding.

Department of Agriculture, passed through Minnesota Department of Education Federal Financial Assistance Listing/CFDA Number 10.553/10.555 Child Nutrition Cluster Reporting Material Weakness in Internal Control Over Compliance Criteria - Uniform Guidance and 7 CFR sections 210.8, 220.11, 215.10, and 225.15(c) set forth the reporting requirements for recipients. Condition - In our testing of reporting, it was identified that there was no review of monthly meal counts submitted to Minnesota Department of Education. Cause - Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect - Risk of incorrect meal reimbursements received from the state and further monetary corrections. Questioned Costs - None reported Context/Sampling - A nonstatistical sample of 4 reports out of 12 reports were selected for testing. Repeat Finding from Prior Years - No Recommendation - We recommend that management establish a written policy that provides for review of monthly meal counts submitted to Minnesota Department of Education. Views of Responsible Officials - There is no disagreement with the audit finding.