Audit 16170

FY End
2022-06-30
Total Expended
$92.01M
Findings
6
Programs
23
Year: 2022 Accepted: 2023-01-19

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12119 2022-001 Significant Deficiency - N
12120 2022-001 Significant Deficiency - N
12121 2022-001 Significant Deficiency - N
588561 2022-001 Significant Deficiency - N
588562 2022-001 Significant Deficiency - N
588563 2022-001 Significant Deficiency - N

Contacts

Name Title Type
F8CPL2XK7VM4 Victoria Farrar Auditee
6236914082 Jennifer L. Shields, Cpa, Cgfm Auditor
No contacts on file

Notes to SEFA

Title: Assistance Listing Numbers Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Cartwright Elementary School District No. 83 under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is 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 selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The program titles and Assistance Listing numbers were obtained from the federal or pass-through grantor or through sam.gov. If the three-digit Assistance Listing extension is unknown, there is a U followed by a two-digit number in the Assistance Listing extension to identify one or more Federal award lines from that program. The first Federal program with an unknown three-digit extension is indicated with U01 for all award lines associated with that program, the second is U02, etc.

Finding Details

Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC ??3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District was unaware Davis Bacon requirements applied to their construction contract. In addition, the contract was miscoded as equipment purchases instead of construction services. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not include required prevailing wage rate clauses in the contract or subcontract. The District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The District did not obtain prior approval from the Arizona Department of Education (ADE) nor submit the required ADE documentation related to the project. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Further, the District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.