View of Responsible Official and Planned Corrective Actions of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District intends to review its procedures relating to procurement for its federal programs, and will ensure that vendors with which the District contracts for goods or services exceeding $25,000 are not listed as suspended or debarred on the federal EPLS website. The District has separately issued a Corrective Action Plan related to this finding.

## Finding 2020-004 Improper Uniform Financial and Reporting Standards (UFARS) Coding Criteria – Minnesota Legal Compliance

Criteria – – UFARS is used at the District for: (1) budgeting and budget projections; (2) financial management; and, (3) reporting to district administrators, the School Board, and the public. At the state level, the Minnesota Department of Education (MDE) requires information to be reported using this uniform reporting standard from school districts. UFARS requires revenue and expenditure account code structure to be multi-dimensional and that the District comply with this code structure.

Condition – During our audit, we noted the District was not in compliance with UFARS coding structure for 5 of 31 disbursements and 1 of 25 receipts we tested during fiscal year 2020 audit.

## Questioned Costs – Not applicable.

## Context

– Five of thirty-one disbursements and one of twenty-five receipts tested were not in compliance.

## Repeat Finding

– This is a current year finding.

## Cause

– This was an oversight by district personnel.

## Effect

– The District did not use the required coding of disbursements and receipts.

Recommendation – We recommend that the District review receipt and disbursement procedures in place to ensure future compliance with UFARS.

View of Responsible Official and Planned Corrective Actions of Responsible Official and Planned Corrective Actions – The District agrees with the finding. The District will review requirements with appropriate staff to assure the required coding is used. The District has separately issued a Corrective Action Plan related to this finding.

## 2020-005 Withholding Affidavit – Minnesota Legal Compliance

Criteria – Minnesota Statutes § 270C.66 require that the District must obtain a certificate by the Commissioner of Revenue that the contractor or subcontractor has complied with the withholding requirements of Minnesota Statutes § 290.92 (either a Commissioner of Revenue Form IC134 or a Contractor’s Withholding Affidavit) before making final settlement with any contractor under a contract requiring the employment of employees for wages by said contractor or subcontractors.

Condition – The District did not obtain the required certificate for one contract completed during fiscal 2020 until after the final payment had been made to the contractor.

## Questioned Costs – Not applicable.

## Context

– One of five contracts tested were not in compliance.

## Repeat Finding

– This is a current year finding.

## Cause

– This was an oversight by district personnel.

Effect – The District did not obtain the required documentation of either a Commissioner of Revenue Form IC134 or a Contractor’s Withholding Affidavit as required by state statutes prior to making a final settlement payment.