Audit 289769

FY End
2023-06-30
Total Expended
$9.18M
Findings
4
Programs
16
Organization: North Wasco County Sd #21 (OR)
Year: 2023 Accepted: 2024-02-09
Auditor: Sensiba LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
366766 2023-003 - - N
366767 2023-004 Significant Deficiency - N
943208 2023-003 - - N
943209 2023-004 Significant Deficiency - N

Contacts

Name Title Type
Q3YRHKGDYHL5 Kara Flath Auditee
5415063424 Brenda Bartlett Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of presentation: Accounting Policies: Expenditures reported in the SEFA 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 SEFA 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education. The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant awards activity of North Wasco County School District No. 21 under programs of the federal government for the year ended June 30, 2022. The information in this SEFA 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 SEFA 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.
Title: Note 2 – Summary of significant accounting principles: Accounting Policies: Expenditures reported in the SEFA 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 SEFA 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education. Expenditures reported in the SEFA 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 SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Note 3 – Indirect cost rates: Accounting Policies: Expenditures reported in the SEFA 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 SEFA 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education.
Title: Note 4 – Subrecipients: Accounting Policies: Expenditures reported in the SEFA 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 SEFA 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education. The District passed through $61,172 of federal funding to Columbia Gorge Education Service District and $118,314 of federal funding to Mosier Community School.
Title: Note 5 – Non-cash awards: Accounting Policies: Expenditures reported in the SEFA 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 SEFA 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance, and instead uses the rate approved annually by Oregon Department of Education. The schedule of expenditures of federal awards includes amounts for food donations provided through the Child Nutrition Program through the State of Oregon. (CFDA #10.555 – Commodity Supplemental Food Program). The value of the food is determined by the grantor at $75,042 and included in the total program value reported on the Schedule of Expenditures of Federal awards.

Finding Details

Information on Federal Program: AL 84.424, Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: N – Special Tests and Provisions (Construction of Assets); Type of Finding: Noncompliance Criteria: Construction of real property using ESSER funds requires the contract to specify that workers will be paid the prevailing wage rate. To monitor the contractor’s compliance with the requirement, the District is required to obtain and review certified payroll reports documenting the contractor’s compliance. Condition: The District did not obtain the required certified payroll reports. Context: While certified payroll reports were not obtained, the District did comply with related provisions, including the inclusion of the contract provision to pay prevailing wage rates contained in the contract with the contractor. Cause: The District’s current policy for obtaining certified payroll reports is compliant with state requirements, and did not contemplate the lower threshold required by federal regulation. Effect: The District did not confirm that the contractor who performed the work paid its workers the prevailing wage as required. Recommendation: We recommend the District implement policy for any upcoming real property construction to be funded using federal programs to ensure that prevailing wage requirements are monitored by use of obtaining certified payroll reports. Views of Responsible Officials: The District agrees with this finding and will adopt additional policies relating to construction projects with federal funds.
Identification of the federal program: AL 84.424, Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: N – Special Tests and Provisions (Construction of Assets); Type of Finding: Significant Deficiency in Internal Control over Compliance. Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant compliance with federal programs. Condition: The District did not implement an effective internal control over compliance sufficient to ensure compliance with the requirement to obtain certified payroll reports for work performed using ESSER program funding. Context: While certified payroll reports were not obtained, the District did comply with related provisions, including the inclusion of the contract provision to pay prevailing wage rates contained in the contract with the contractor. Cause: We are unsure of the cause, but it appears the District was unaware of the requirement to obtain certified payroll reports and thus did not implement an internal control to ensure compliance. Effect: The District did not confirm that the contractor who performed the work paid its workers the prevailing wage as required. Recommendation: We recommend the District implement policy for any upcoming real property construction to be funded using federal programs to ensure that prevailing wage requirements are monitored by use of obtaining certified payroll reports. Views of Responsible Officials: The District agrees with this finding and will adopt policies relating to construction projects with federal funds.
Information on Federal Program: AL 84.424, Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: N – Special Tests and Provisions (Construction of Assets); Type of Finding: Noncompliance Criteria: Construction of real property using ESSER funds requires the contract to specify that workers will be paid the prevailing wage rate. To monitor the contractor’s compliance with the requirement, the District is required to obtain and review certified payroll reports documenting the contractor’s compliance. Condition: The District did not obtain the required certified payroll reports. Context: While certified payroll reports were not obtained, the District did comply with related provisions, including the inclusion of the contract provision to pay prevailing wage rates contained in the contract with the contractor. Cause: The District’s current policy for obtaining certified payroll reports is compliant with state requirements, and did not contemplate the lower threshold required by federal regulation. Effect: The District did not confirm that the contractor who performed the work paid its workers the prevailing wage as required. Recommendation: We recommend the District implement policy for any upcoming real property construction to be funded using federal programs to ensure that prevailing wage requirements are monitored by use of obtaining certified payroll reports. Views of Responsible Officials: The District agrees with this finding and will adopt additional policies relating to construction projects with federal funds.
Identification of the federal program: AL 84.424, Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: N – Special Tests and Provisions (Construction of Assets); Type of Finding: Significant Deficiency in Internal Control over Compliance. Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant compliance with federal programs. Condition: The District did not implement an effective internal control over compliance sufficient to ensure compliance with the requirement to obtain certified payroll reports for work performed using ESSER program funding. Context: While certified payroll reports were not obtained, the District did comply with related provisions, including the inclusion of the contract provision to pay prevailing wage rates contained in the contract with the contractor. Cause: We are unsure of the cause, but it appears the District was unaware of the requirement to obtain certified payroll reports and thus did not implement an internal control to ensure compliance. Effect: The District did not confirm that the contractor who performed the work paid its workers the prevailing wage as required. Recommendation: We recommend the District implement policy for any upcoming real property construction to be funded using federal programs to ensure that prevailing wage requirements are monitored by use of obtaining certified payroll reports. Views of Responsible Officials: The District agrees with this finding and will adopt policies relating to construction projects with federal funds.