Northern Cass Public School District #97Local Government

Department of Education, passed through the North Dakota Department of Public Instruction ALN 84.371C, award numbers S371C190005 and S371C190005-22DD, Comprehensive Literacy State Development. Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria - Requirements contained in 2 CFR Part 200.331 specifies that pass-through entities be responsible for identifying Federal Award information and applicable compliance requirements at the time of awards to subrecipients; for monitoring the subrecipient's use for Federal awards; providing reasonable assurance that the subrecipient administers Federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements; ensuring that subrecipients have required audits completed, reviewing the results of those audits; and evaluating the impact of subrecipient activities on the pass-through entity's ability to comply with applicable Federal regulations. Condition - There were no formal agreements between the District and its subrecipients as required in 2 CFR 200.331 and no formal subrecipient monitoring procedures were being performed. Cause - The District's agreements with subrecipients must properly follow Uniform Guidance and no formal monitoring procedures were in place. Effect - Lacking controls could lead to noncompliance with the requirements of the program by subrecipients and could require the return of grant funds to the grantor agency or the entity receiving less grant funds than they were eligible for. Questioned Costs - None reported Context/Sampling - 100% of the subrecipient entities were selected for subrecipient monitoring testing. Repeat Finding from Prior Year - No Recommendation - We recommend the District maintain formal agreements with the subrecipient entities that include the Uniform Guidance language and implement formal monitoring processes over subrecipient entities. Views of Responsible Officials - There is no disagreement with the audit finding.

2022-003 Department of Agriculture, Passed through North Dakota Department of Public Instruction Federal Financial Assistance Listing/CFDA Number 10.553/10.555/10.555C/10.555S/10.559 Child Nutrition Cluster Procurement, Suspension, and Debarment Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria - Uniform Guidance and 2 CFR 200.317 through 200.327 set forth the standards non-federal entities other than states must follow when operating federal programs. Condition - In our testing of procurement, suspension, and debarment, it was identified that the District did not satisfy the requirements of 2 CFR 200.317 through 200.327. The District did not comply with requirements of the grant for procurement of food service related services. 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 noncompliance to federal requirements increases overall risk on non-compliance. Questioned Costs - None reported. Context/Sampling - All food service contracts were selected for testing. Repeat Finding from Prior Years - Yes Recommendation - We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of Responsible Officials - There is no disagreement with the audit finding.

2021-004 Procurement, Suspension, and Debarment Material Noncompliance and Material Weakness in Internal Control over Compliance Federal Financial Assistance Federal Agency and Listing/Federal Contract Award Pass-Through Entity CFDA Number Program Title Number Year Department of Education Passed through the State Department of Child Nutrition Public Instruction 10.559 Cluster N/A 2021 Criteria - Uniform Guidance and 2 CFR 200.317 through 200.327 set forth the standards non-federal entities other than states must follow when operating federal programs. Condition - In our testing of procurement, suspension, and debarment, it was identified that the District did not satisfy the requirements of 2 CFR 200.317 through 200.327. The District did not comply with requirements of the grant for procurement of food service related services. 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 noncompliance to federal requirements increases overall risk on non-compliance. Questioned Costs - None reported. Context/Sampling - All food service contracts were selected for testing. Repeat Finding from Prior Years - No. Recommendation - We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. View of Responsible Officials - There is no disagreement with the audit finding.