FAC Explorer

Audit 11096

FY End
2023-06-30
Total Expended
$1.26M
Findings
2
Programs
10
Organization: Unified School District Number 452 (KS)
Year: 2023 Accepted: 2024-01-11
Auditor: Dirks Anthony & Duncan LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8296 2023-001 Significant Deficiency - N
584738 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $862,055 Yes 1
10.555 National School Lunch Program $154,647 - 0
84.010 Title I Grants to Local Educational Agencies $100,737 - 0
84.358 Rural Education $47,789 - 0
10.553 School Breakfast Program $37,769 - 0
10.559 Summer Food Service Program for Children $19,076 - 0
84.424 Student Support and Academic Enrichment Program $15,175 - 0
84.367 Improving Teacher Quality State Grants $14,353 - 0
84.365 English Language Acquisition State Grants $12,265 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $75 - 0

Contacts

Name Title Type
ZLJLFZJC5RD7 Trent Horn Auditee
6204926226 Mathew Medill Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule of Expenditures of Federal Awards (SEFA) are reported using the accounting practices prescribed by the State of Kansas to demonstrate compliance with the cash and budget laws of the State of Kansas, the same as the financial statement accompanying this schedule. De Minimis Rate Used: N Rate Explanation: Unified School District Number 452 did not use the standard indirect cost rate of 10%. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Unified School District Number 452, Johnson City, Kanas (the District) under programs of the federal government for the year ended June 30, 2023. The information in this schedule if presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a select portion of the operations of District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. The Schedule is presented using regulatory basis of accounting prescribed by the Kanas Municipal Audit and Accounting Guide (as described in Note 1 to the financial statement), which is the same basis of accounting as the financial statement accompanying this schedule.

Finding Details

Finding 2023-001
Finding 2023-001 SIGNIFICANT DEFICENCY AND MATERIAL NONCOMPLIANCE Special Tests Criteria: When contracting with a contractor for amounts greater than $2,000 the District is required to observe the Davis-Bacon prevailing wage requirements. The Davis-Bacon Act and Kansas State Department of Education (KSDE) requires the District to following a specific set of requirements. Per KSDE’s “Capital Improvement and Construction with Federal Funds” handout: • Contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. • Contractors must be required to pay wages not less than once a week. • District must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. • Contract must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), • District must report all suspected or reported violations to the Federal awarding agency. Condition: While performing the special tests, as required by May 2023 Compliance Supplement, set forth by the Executive Office of the President Office of Management and Budget, it was discovered the District did not obtain a contract with Johnson Controls, Inc. for the heating, ventilation, and air-condition (HVAC) construction project. The absence of a contract corresponds to the violation of the Davis-Bacon Act clause and a provision for compliance with the Copeland “Anti-Kickback” Act. Without the legal requirement to follow the Davis-Bacon Act, the contractor was not required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor and pay wages not less than once a week. Cause: Management relied on the contractor’s assurance of their adherence to KSDE’s requirements for construction contracts. Effect: The District did not comply with the Davis-Bacon prevailing wage requirements as set out by KSDE. The contractor was not required to pay their laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Questioned Costs: None Recommendations: The District should utilize the KSDE’s provided checklist for construction contract and not rely on a non-District individual for compliance. A board appointed individual should provide a secondary review to ensure all requirements are met for all construction contracts being paid with federal funds. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.
Finding 2023-001
Finding 2023-001 SIGNIFICANT DEFICENCY AND MATERIAL NONCOMPLIANCE Special Tests Criteria: When contracting with a contractor for amounts greater than $2,000 the District is required to observe the Davis-Bacon prevailing wage requirements. The Davis-Bacon Act and Kansas State Department of Education (KSDE) requires the District to following a specific set of requirements. Per KSDE’s “Capital Improvement and Construction with Federal Funds” handout: • Contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. • Contractors must be required to pay wages not less than once a week. • District must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. • Contract must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), • District must report all suspected or reported violations to the Federal awarding agency. Condition: While performing the special tests, as required by May 2023 Compliance Supplement, set forth by the Executive Office of the President Office of Management and Budget, it was discovered the District did not obtain a contract with Johnson Controls, Inc. for the heating, ventilation, and air-condition (HVAC) construction project. The absence of a contract corresponds to the violation of the Davis-Bacon Act clause and a provision for compliance with the Copeland “Anti-Kickback” Act. Without the legal requirement to follow the Davis-Bacon Act, the contractor was not required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor and pay wages not less than once a week. Cause: Management relied on the contractor’s assurance of their adherence to KSDE’s requirements for construction contracts. Effect: The District did not comply with the Davis-Bacon prevailing wage requirements as set out by KSDE. The contractor was not required to pay their laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Questioned Costs: None Recommendations: The District should utilize the KSDE’s provided checklist for construction contract and not rely on a non-District individual for compliance. A board appointed individual should provide a secondary review to ensure all requirements are met for all construction contracts being paid with federal funds. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.