Audit 20234

FY End
2022-06-30
Total Expended
$3.07M
Findings
12
Programs
10
Organization: Steel City Academy, Inc. (IN)
Year: 2022 Accepted: 2023-01-04
Auditor: Donovan PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
24167 2022-001 Significant Deficiency - N
24168 2022-002 Significant Deficiency - F
24169 2022-001 Significant Deficiency - N
24170 2022-002 Significant Deficiency - F
24171 2022-001 Significant Deficiency - N
24172 2022-002 Significant Deficiency - F
600609 2022-001 Significant Deficiency - N
600610 2022-002 Significant Deficiency - F
600611 2022-001 Significant Deficiency - N
600612 2022-002 Significant Deficiency - F
600613 2022-001 Significant Deficiency - N
600614 2022-002 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.08M Yes 2
84.010 Title I Grants to Local Educational Agencies $426,770 - 0
84.377 School Improvement Grants $183,302 - 0
32.009 Emergency Connectivity Fund Program $128,212 - 0
10.553 School Breakfast Program $65,210 - 0
84.367 Improving Teacher Quality State Grants $56,733 - 0
10.555 National School Lunch Program $37,365 - 0
84.424 Student Support and Academic Enrichment Program $29,378 - 0
84.027 Special Education_grants to States $25,003 - 0
10.582 Fresh Fruit and Vegetable Program $9,300 - 0

Contacts

Name Title Type
MLN1A25JGN53 Shanta MacK Auditee
2197501010 Bj Lippert Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Steel City Academy, Inc. (the School) under programs of the federalgovernment for the year ended June 30, 2022. The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe School, it is not intended to and does not present the financial position, changes in net assets,functional expenses, or cash flows of the School.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.NOTE 3 - INDIRECT COST RATEThe School has elected not to use the 10 percent de minimis indirect cost rate allowed under theUniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
FINDING 2022-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that included the provisions of the Davis- Bacon Act was not put into place. Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, 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. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and that required regulations are documented in those contracts to be compliant with federal regulations. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.
SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D Condition The School completed an inventory of its equipment for the year ended June 30, 2022. However, this inventory was not compared to the School?s record of equipment and real property purchased with federal funds. Criteria 2 CFR part 200.313 requires property records be maintained that include all property purchased using federal funds. 2 CFR part 200.313(d)(2) states: A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Cause The School was not aware of the requirements outlined in the Criteria section above. Effect The School did not comply with the requirements to reconcile its physical inventory with its property records. Recommendation We recommend the School develop internal controls to ensure the physical inventory is reconciled with its property records at least once every two years. Views of Responsible Officials and Planned Corrective Actions The School?s Corrective Action Plan is included on page 24.