FAC Explorer

Audit 298674

FY End
2023-06-30
Total Expended
$2.92M
Findings
2
Programs
15
Organization: Hugo Public School District No. I-39, Choctaw County, Ok (OK)
Year: 2023 Accepted: 2024-03-27
Auditor: Bledsoe Hewett & Gullekson

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386267 2023-002 Significant Deficiency - N
962709 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $391,511 Yes 1
84.010 Title I Grants to Local Educational Agencies $116,072 - 0
10.553 School Breakfast Program $108,879 Yes 0
10.555 National School Lunch Program $73,295 Yes 0
84.060 Indian Education_grants to Local Educational Agencies $71,050 - 0
84.358 Rural Education $66,383 - 0
84.424 Student Support and Academic Enrichment Program $28,782 - 0
15.130 Indian Education_assistance to Schools $18,485 - 0
84.048 Career and Technical Education -- Basic Grants to States $16,346 - 0
84.173 Special Education_preschool Grants $13,932 - 0
10.559 Summer Food Service Program for Children $12,082 Yes 0
84.367 Improving Teacher Quality State Grants $8,809 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $3,926 - 0
84.041 Impact Aid $976 - 0
84.027 Special Education_grants to States $968 - 0

Contacts

Name Title Type
W6FMM276NS16 Cory Smith Auditee
5803266483 Jeff Hewett Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on this schedule are reported on the regulatory basis of accounting consistent with the preparation of the combined financial statements except as noted in Note 3. 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. The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. 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. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. The accompanying schedule of expenditures of federal awards includes the federal activity of the District for the year ended June 30, 2023. This information 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 District, it is not intended and does not present the financial position, changes in net assets, or cash flows of the District.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on this schedule are reported on the regulatory basis of accounting consistent with the preparation of the combined financial statements except as noted in Note 3. 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. The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. 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. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. Expenditures reported on this schedule are reported on the regulatory basis of accounting consistent with the preparation of the combined financial statements except as noted in Note 3. 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. The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients.
Title: Note 3 - Non-Monetary Assistance Accounting Policies: Expenditures reported on this schedule are reported on the regulatory basis of accounting consistent with the preparation of the combined financial statements except as noted in Note 3. 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. The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. 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. None of the federal programs include any loan programs, loan guarantee programs, and has no sub-recipients. Commodities received by the District were of a non-monetary nature.

Finding Details

Finding 2023-002
CFDA Number and Title: CFDA #84.425U – Education Stabilization Funds ARP-ESSER III Federal Award ID Number: S425D200024 Federal Agency: U.S. Department of Education Pass-Through Entity: Oklahoma Department of Education Compliance Requirement: Special Tests and Provisions Questioned Costs: $ 0 Criteria: The objective of the Education Stabilization Fund (ESF) program are to prevent, prepare for and respond to the COVID-19 pandemic. In fiscal year 22-23, the District spent a total of $966,872 in federal funding under its ESF awards. This included $575,361 of its Elementary and Secondary School Emergency Relief (ESSER) Fund subprogram award funded by the Coronavirus Response and Relief Supplemental Appropriations Act (ESSER II), and $391,511 of its Elementary and Secondary School Emergency Relief (ESSER) Fund subprogram award funded by the American Rescue Plan Act (ESSER III)The Davis-Bacon Act requires contractors and subcontractors that work on construction contracts in excess of $2,000 financed federal financial assistance to pay laborers and mechanics prevailing wages- the wage rates the U.S. Department of Labor considers being similar to what local workers have been paid for similar projects. Prevailing wage rate requirements specify that the contract between the District and the prime contractor include specific language to ensure contractors and subcontractors are paid at prevailing wage rates. Additionally, the District is required to collect weekly certified payrolls from contractors and subcontractors, which include copies of their payroll and signed “Statement of Compliance” per Title 29 Code of Federal Regulations, Subtitle A, Parts 1,3,5. Condition: The District hired one contractor for the partial roof replacement at the elementary school site which included demolition, materials and labor. During the 22-23 fiscal year, the District paid the contractor $142,000 from its ESSER III award for the project. The District did not adequate controls for ensuring compliance with the prevailing wage rate requirements, that a prevailing wage rate clause was included in the contract with the contractor, and that the District collect the weekly certified payroll reports from the contractor. Cause/Effect: During this period, the District experienced turnover in some key administrative positions. Additionally, the District’s oversight agency did not communicate effectively the possible compliance requirements of using the federal awards for construction type project, therefore the District official were unaware of the compliance requirements. This caused the District to not have the appropriate internal controls in place in order to comply with the Davis-Bacon Act requirements. The District could be liable for paying any additional wages if the contractor did not pay prevailing wage rates to laborers. Recommendation: We recommend that the District develop internal controls that ensure compliance with federal wage rate requirements, which would include inserting the prevailing wage rate clauses into contracts and implementing effective monitoring processes to collect and review all weekly certified payroll reports from contractors.
Finding 2023-002
CFDA Number and Title: CFDA #84.425U – Education Stabilization Funds ARP-ESSER III Federal Award ID Number: S425D200024 Federal Agency: U.S. Department of Education Pass-Through Entity: Oklahoma Department of Education Compliance Requirement: Special Tests and Provisions Questioned Costs: $ 0 Criteria: The objective of the Education Stabilization Fund (ESF) program are to prevent, prepare for and respond to the COVID-19 pandemic. In fiscal year 22-23, the District spent a total of $966,872 in federal funding under its ESF awards. This included $575,361 of its Elementary and Secondary School Emergency Relief (ESSER) Fund subprogram award funded by the Coronavirus Response and Relief Supplemental Appropriations Act (ESSER II), and $391,511 of its Elementary and Secondary School Emergency Relief (ESSER) Fund subprogram award funded by the American Rescue Plan Act (ESSER III)The Davis-Bacon Act requires contractors and subcontractors that work on construction contracts in excess of $2,000 financed federal financial assistance to pay laborers and mechanics prevailing wages- the wage rates the U.S. Department of Labor considers being similar to what local workers have been paid for similar projects. Prevailing wage rate requirements specify that the contract between the District and the prime contractor include specific language to ensure contractors and subcontractors are paid at prevailing wage rates. Additionally, the District is required to collect weekly certified payrolls from contractors and subcontractors, which include copies of their payroll and signed “Statement of Compliance” per Title 29 Code of Federal Regulations, Subtitle A, Parts 1,3,5. Condition: The District hired one contractor for the partial roof replacement at the elementary school site which included demolition, materials and labor. During the 22-23 fiscal year, the District paid the contractor $142,000 from its ESSER III award for the project. The District did not adequate controls for ensuring compliance with the prevailing wage rate requirements, that a prevailing wage rate clause was included in the contract with the contractor, and that the District collect the weekly certified payroll reports from the contractor. Cause/Effect: During this period, the District experienced turnover in some key administrative positions. Additionally, the District’s oversight agency did not communicate effectively the possible compliance requirements of using the federal awards for construction type project, therefore the District official were unaware of the compliance requirements. This caused the District to not have the appropriate internal controls in place in order to comply with the Davis-Bacon Act requirements. The District could be liable for paying any additional wages if the contractor did not pay prevailing wage rates to laborers. Recommendation: We recommend that the District develop internal controls that ensure compliance with federal wage rate requirements, which would include inserting the prevailing wage rate clauses into contracts and implementing effective monitoring processes to collect and review all weekly certified payroll reports from contractors.