Audit 23415

FY End
2022-06-30
Total Expended
$2.74M
Findings
8
Programs
8
Year: 2022 Accepted: 2022-11-27

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
21237 2022-001 Material Weakness - F
21238 2022-001 Material Weakness - F
21239 2022-002 - - F
21240 2022-002 - - F
597679 2022-001 Material Weakness - F
597680 2022-001 Material Weakness - F
597681 2022-002 - - F
597682 2022-002 - - F

Contacts

Name Title Type
UALXXNL586N6 Demir Ozcan Auditee
5854679201 Jeanne Beutner Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation: Accounting Policies: Expenditures reported on the Schedule are reported on the 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. De Minimis Rate Used: N Rate Explanation: Rochester Academy Charter School has not yet elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. All costs are directly allocated. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Rochester Academy Charter School 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 Rochester Academy Charter School, it is not intended to and does not present the financial position, change in net assets or cash flows of Rochester Academy Charter School.

Finding Details

Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must have controls in place to ensure the contractors and subcontractors are in compliance. We found the School did not have adequate internal controls in place to ensure compliance with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. The School did not have controls in place to know that the contracts should include provisions for the prevailing wages to be paid. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the Act and thus, did not have proper controls in place to ensure all compliance requirements were met. Recommendation: The School should ensure that processes are in place to require contractors and subcontractors to comply with the Act, including proper provisions in any construction contracts over $2,000. The School should also require documentation that the contractors are following the regulations and paying proper wages and the School should review and confirm that the contractors are compliant. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must have controls in place to ensure the contractors and subcontractors are in compliance. We found the School did not have adequate internal controls in place to ensure compliance with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. The School did not have controls in place to know that the contracts should include provisions for the prevailing wages to be paid. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the Act and thus, did not have proper controls in place to ensure all compliance requirements were met. Recommendation: The School should ensure that processes are in place to require contractors and subcontractors to comply with the Act, including proper provisions in any construction contracts over $2,000. The School should also require documentation that the contractors are following the regulations and paying proper wages and the School should review and confirm that the contractors are compliant. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must ensure that the contractors and subcontractors are in compliance. We found the School did not comply with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. Neither construction contract included a provision requiring the contractors to comply with the Act and thus, the contractor may not have paid the proper prevailing wages. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the requirements of the Act. Recommendation: The School should ensure that all federally funded construction contracts over $2,000 should include the required provision to follow the Act and the School should ensure that the contractors are following the regulations and paying proper wages. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must ensure that the contractors and subcontractors are in compliance. We found the School did not comply with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. Neither construction contract included a provision requiring the contractors to comply with the Act and thus, the contractor may not have paid the proper prevailing wages. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the requirements of the Act. Recommendation: The School should ensure that all federally funded construction contracts over $2,000 should include the required provision to follow the Act and the School should ensure that the contractors are following the regulations and paying proper wages. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must have controls in place to ensure the contractors and subcontractors are in compliance. We found the School did not have adequate internal controls in place to ensure compliance with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. The School did not have controls in place to know that the contracts should include provisions for the prevailing wages to be paid. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the Act and thus, did not have proper controls in place to ensure all compliance requirements were met. Recommendation: The School should ensure that processes are in place to require contractors and subcontractors to comply with the Act, including proper provisions in any construction contracts over $2,000. The School should also require documentation that the contractors are following the regulations and paying proper wages and the School should review and confirm that the contractors are compliant. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must have controls in place to ensure the contractors and subcontractors are in compliance. We found the School did not have adequate internal controls in place to ensure compliance with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. The School did not have controls in place to know that the contracts should include provisions for the prevailing wages to be paid. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the Act and thus, did not have proper controls in place to ensure all compliance requirements were met. Recommendation: The School should ensure that processes are in place to require contractors and subcontractors to comply with the Act, including proper provisions in any construction contracts over $2,000. The School should also require documentation that the contractors are following the regulations and paying proper wages and the School should review and confirm that the contractors are compliant. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must ensure that the contractors and subcontractors are in compliance. We found the School did not comply with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. Neither construction contract included a provision requiring the contractors to comply with the Act and thus, the contractor may not have paid the proper prevailing wages. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the requirements of the Act. Recommendation: The School should ensure that all federally funded construction contracts over $2,000 should include the required provision to follow the Act and the School should ensure that the contractors are following the regulations and paying proper wages. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.
Criteria and Condition: The Davis-Bacon Act (the Act) requires contractors to pay federally prescribed prevailing wages to laborers for federally-funded construction projects that exceed $2,000. Grant recipients must include in construction contracts a provision requiring contractors and subcontractors to comply with the Act. Additionally, grant recipients must ensure that the contractors and subcontractors are in compliance. We found the School did not comply with the Act. Context: The School entered into two contracts for construction greater than $2,000 that did not include prevailing wage requirements as required, one funded with each grant, ESSER and ARP ESSER. The total construction contract related to the ESSER grant to date totaled $1,433,266 of which $277,174 was funded with the ESSER grant this year. The total construction contract related to the ARP ESSER grant was $1,981,026 of which $757,400 was funded with grant funds this year. Both contracts included costs for labor and materials although the cost of materials ($372,377) on the ESSER grant exceeded the federal funding spent and on the ARP ESSER grant, only $22,400 of the $757,400 was used for labor. Neither construction contract included a provision requiring the contractors to comply with the Act and thus, the contractor may not have paid the proper prevailing wages. Effect: This could have resulted in an underpayment of wages to laborers working on the project. Cause: The School was not aware of the requirements of the Act. Recommendation: The School should ensure that all federally funded construction contracts over $2,000 should include the required provision to follow the Act and the School should ensure that the contractors are following the regulations and paying proper wages. Views of responsible officials and planned corrective actions: The School is in the process of reviewing the rules and designing and implementing controls to ensure compliance with the Act.