FAC Explorer

Audit 1892

FY End
2022-06-30
Total Expended
$2.79M
Findings
4
Programs
12
Organization: Newfound Area School District (NH)
Year: 2022 Accepted: 2023-10-31
Auditor: Plodzik & Sanderson

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
994 2022-002 Material Weakness - AB
995 2022-003 Material Weakness - N
577436 2022-002 Material Weakness - AB
577437 2022-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $390,555 - 0
84.287 Twenty-First Century Community Learning Centers $359,453 - 0
84.027 Special Education_grants to States $249,044 - 0
84.425 Education Stabilization Fund $121,459 Yes 0
10.553 School Breakfast Program $120,744 - 0
10.555 National School Lunch Program $35,024 - 0
84.424 Student Support and Academic Enrichment Program $34,226 - 0
10.582 Fresh Fruit and Vegetable Program $26,343 - 0
84.358 Rural Education $12,582 - 0
16.839 Stop School Violence $11,503 - 0
84.173 Special Education_preschool Grants $5,958 - 0
84.367 Improving Teacher Quality State Grants $305 - 0

Contacts

Name Title Type
MGNKHN4MK9B8 Robin Reinhold Auditee
6037445555 Sheryl Pratt Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. 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. De Minimis Rate Used: N Rate Explanation: The Newfound Area School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Newfound Area School District under programs of the federal government for the year ended June 30, 2022. The information in this 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 Newfound Area School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Newfound Area School District.
Title: Food Donation Accounting Policies: 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. 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. De Minimis Rate Used: N Rate Explanation: The Newfound Area School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities on the date received. For the fiscal year ended June 30, 2022 the value of the food donations received was $44,877.

Finding Details

Finding 2022-002
Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the District, as a recipient of Federal funds, must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, under 2 CFR 200.430, it states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (I) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, (2) be incorporated into the official records of the non-Federal entity, (3) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding l 00% of compensated activities, and ( 4) support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. Condition: During our review of payroll charged to the grant, we noted four employees who did not have documentation to support the distribution of the employee's time spent on grant activities. Cause: Administrative oversight. Effect: The District did not have adequate documentation to support the distribution of the employee's wages paid using grant funds. Questioned Costs: $271,029 Repeat Finding: No Recommendation: We recommend that documentation be retained to support the distribution of salaries and wages for all employees paid using grant funds. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.
Finding 2022-003
Criteria or Specific Requirement: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by Federal assistance must be paid not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). In addition, non-Federal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is perfonned, a copy of the payroll and a statement of compliance (certified payrolls). Condition: During our review of grant expenditures, one construction project over $2,000 was noted. Weekly certified payrolls were not submitted to the District. Cause: Administrative oversight. Effect: The District was not provided weekly certified payrolls from the contractor. Questioned Costs: $97,800 Repeat Finding: No Recommendation: We recommend that the District obtain the weekly certified payrolls from all contractors and subcontractors where construction contracts exceeding $2,000 are financed with Federal assistance. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.
Finding 2022-002
Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the District, as a recipient of Federal funds, must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, under 2 CFR 200.430, it states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (I) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, (2) be incorporated into the official records of the non-Federal entity, (3) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding l 00% of compensated activities, and ( 4) support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. Condition: During our review of payroll charged to the grant, we noted four employees who did not have documentation to support the distribution of the employee's time spent on grant activities. Cause: Administrative oversight. Effect: The District did not have adequate documentation to support the distribution of the employee's wages paid using grant funds. Questioned Costs: $271,029 Repeat Finding: No Recommendation: We recommend that documentation be retained to support the distribution of salaries and wages for all employees paid using grant funds. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.
Finding 2022-003
Criteria or Specific Requirement: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by Federal assistance must be paid not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). In addition, non-Federal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is perfonned, a copy of the payroll and a statement of compliance (certified payrolls). Condition: During our review of grant expenditures, one construction project over $2,000 was noted. Weekly certified payrolls were not submitted to the District. Cause: Administrative oversight. Effect: The District was not provided weekly certified payrolls from the contractor. Questioned Costs: $97,800 Repeat Finding: No Recommendation: We recommend that the District obtain the weekly certified payrolls from all contractors and subcontractors where construction contracts exceeding $2,000 are financed with Federal assistance. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.