FAC Explorer

Audit 331816

FY End
2024-06-30
Total Expended
$11.61M
Findings
2
Programs
21
Organization: Logan City School District (UT)
Year: 2024 Accepted: 2024-12-11
Auditor: Squire & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513837 2024-001 Significant Deficiency - N
1090279 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $2.00M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.65M - 0
84.027 Special Education Grants to States $1.15M - 0
93.575 Child Care and Development Block Grant $781,867 - 0
93.778 Medical Assistance Program $674,616 - 0
10.553 School Breakfast Program $296,210 Yes 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $201,075 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $184,538 - 0
84.048 Career and Technical Education -- Basic Grants to States $130,717 - 0
84.424 Student Support and Academic Enrichment Program $127,435 - 0
84.011 Migrant Education State Grant Program $62,241 - 0
84.365 English Language Acquisition State Grants $60,268 - 0
84.173 Special Education Preschool Grants $45,367 - 0
10.665 Schools and Roads - Grants to States $24,831 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $15,902 - 0
84.425 Education Stabilization Fund $11,395 Yes 0
94.006 Americorps State and National 94.006 $11,303 - 0
84.196 Education for Homeless Children and Youth $5,469 - 0
10.649 Pandemic Ebt Administrative Costs $3,256 - 0
45.310 Grants to States $3,000 - 0
10.185 Local Food for Schools Cooperative Agreement Program $2,890 - 0

Contacts

Name Title Type
X6JWYGRQQML9 Jeff Barben Auditee
4357552300 David R Brown Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS FOR PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the school food services fund as an inventory asset and federal revenue when received totaling $242,739 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the school food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Logan City School District (the District) under programs of the federal government for the year ended June 30, 2024. The information in the 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 Requirements for Federal Awards (Uniform Guidance). Because the Schedule 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 financial position, or cash flows of the District.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the school food services fund as an inventory asset and federal revenue when received totaling $242,739 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the school food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the school food services fund as an inventory asset and federal revenue when received totaling $242,739 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the school food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C - RELATIONSHIP TO DISTRICT'S FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the school food services fund as an inventory asset and federal revenue when received totaling $242,739 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the school food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. A reconciliation of federal revenue as reported on the District’s basic financial statements and the schedule of expenditures of federal awards for the year ended June 30, 2024 is detailed in the table.
Title: NOTE D - SUBRECIPIENTS OF FEDERAL AWARDS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. 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. Donated food commodities are recorded at acquisition value in the school food services fund as an inventory asset and federal revenue when received totaling $242,739 for the year ended June 30, 2024. Donated food commodity inventories are recorded as expenditures in the school food services fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. The District did not provide federal award funding to any subrecipients during the year ended June 30, 2024.

Finding Details

Finding 2024-001
U.S. Department of Education passed through Utah State Board of Education 2024-001 Special Tests and Provisions – Wage Rate Requirements Education Stabilization Fund: COVID-19 American Rescue Plan – Elementary and Secondary School Emergency Relief (84.425U) Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2024 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from subcontractors for one of two construction contracts financed by the Education Stabilization Fund until after the construction contract was completed. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. Questioned Costs: No costs were questionable Repeat finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed the processes and internal controls related to construction contracts and have implemented changes to ensure that the Wage Rate Requirements are adhered to, when applicable.
Finding 2024-001
U.S. Department of Education passed through Utah State Board of Education 2024-001 Special Tests and Provisions – Wage Rate Requirements Education Stabilization Fund: COVID-19 American Rescue Plan – Elementary and Secondary School Emergency Relief (84.425U) Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2024 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from subcontractors for one of two construction contracts financed by the Education Stabilization Fund until after the construction contract was completed. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. Questioned Costs: No costs were questionable Repeat finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed the processes and internal controls related to construction contracts and have implemented changes to ensure that the Wage Rate Requirements are adhered to, when applicable.