FAC Explorer

Audit 20590

FY End
2022-06-30
Total Expended
$1.09M
Findings
6
Programs
14
Organization: Sharon Joint #11 School District (WI)
Year: 2022 Accepted: 2022-12-13
Auditor: Reilly Penner & Benton LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20660 2022-003 Significant Deficiency - F
20661 2022-003 Significant Deficiency - F
20662 2022-003 Significant Deficiency - F
597102 2022-003 Significant Deficiency - F
597103 2022-003 Significant Deficiency - F
597104 2022-003 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.282 Charter Schools $150,000 - 0
10.555 National School Lunch Program $121,596 Yes 0
84.027 Special Education_grants to States $88,005 - 0
84.010 Title I Grants to Local Educational Agencies $76,904 - 0
10.553 School Breakfast Program $59,920 Yes 0
93.778 Medical Assistance Program $51,819 - 0
84.358 Rural Education $41,949 - 0
66.040 State Clean Diesel Grant Program $24,963 - 0
10.559 Summer Food Service Program for Children $19,385 Yes 0
84.173 Special Education_preschool Grants $12,977 - 0
84.367 Improving Teacher Quality State Grants $12,974 - 0
84.424 Student Support and Academic Enrichment Program $8,721 - 0
84.425 Education Stabilization Fund $6,480 Yes 1
84.365 English Language Acquisition State Grants $2,812 - 0

Contacts

Name Title Type
SBUGSX34KGJ5 Sara Andrus Auditee
2627364477 Carrie Gindt Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedules of expenditures of federal and state awards (the Schedules) includes the federal and state award activity of the District under programs of the federal and state 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) and the Wisconsin State Single Audit Guidelines. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. All federal and state awards received directly from federal and state agencies as well as federal and state financial awards passed through other government agencies are included on the schedule.
Title: 4. Noncash Awards Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal donated commodities in the Child Nutrition Cluster is administered by the U.S. Department of Agriculture and passed through the Wisconsin Department of Instruction and transactions relating to this program are included in the Districts basic financial statements. Commodities received during the year that are included in the federal expenditures are valued by the federal agency. There are no balances outstanding as of June 30, 2022.

Finding Details

Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-003
Reference Number: 2022-003 Description: Federal #85.425 ? Education Stabilization Fund Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the Education Stabilization Fund grants. Condition: The District used $26,070 in ESSER II funds (84.425D) and $154,853 ARP ESSER III funds (84.425U) for controls systems and HVAC upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements prior to charging the costs to the grants. It was ultimately determined that the contractor did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to the program that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using Education Stabilization funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.