FAC Explorer

Audit 343854

FY End
2024-06-30
Total Expended
$1.11M
Findings
2
Programs
11
Organization: Henning Public School District 545 (MN)
Year: 2024 Accepted: 2025-02-26
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524492 2024-005 Material Weakness - N
1100934 2024-005 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $646,117 Yes 1
84.010 Title I Grants to Local Educational Agencies $165,358 - 0
10.553 School Breakfast Program $54,573 - 0
84.358 Rural Education $41,800 - 0
84.027 Special Education Grants to States $27,593 - 0
10.555 National School Lunch Program $14,345 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $14,174 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
10.559 Summer Food Service Program for Children $5,568 - 0
10.582 Fresh Fruit and Vegetable Program $5,394 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3,000 - 0

Contacts

Name Title Type
MN1CHBK9J6N7 Melissa Sparks Auditee
2185832927 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of Independent School District No. 545 under programs of the federal government for the year ended June 30, 2024. 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 Independent School District No. 545, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 545.
Title: COMMODITY DISTRIBUTION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Non-monetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: PASS-THROUGH ENTITIES Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All pass-through entities listed on the previous page use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended June 30, 2024, the District did not pass any federal money to subrecipients.

Finding Details

Finding 2024-005
Material Weakness in Internal Control and Compliance Federal Program Education Stabilization Fund (AL 84.425U) Special Tests Criteria Uniform Guidance states “the contractor or 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)”. Condition We noted during inquiry and testing that contractors were not required to submit their certified payrolls on a weekly basis to the construction manager that oversaw the HVAC project. Questioned Costs None. Context During testing of the wage rate requirements, the Project Manual from the construction manager contained the Wage Rate Requirements, however, it didn’t specify the requirement for weekly certified payrolls; only certified payrolls needing to be submitted. Also, we inquired who reviews the submitted certified payrolls to ensure the rates are paid according to federal pay rates. We noted that the firm who the District hired to oversee the project was supposed to be in charge of this. However, during the inquiry of the firm, we noted that they do not review or sign off on these for accuracy. Cause Management oversight. Effect There is an increased risk of not paying appropriate wages to contractors working on the project. Repeat Finding No. Recommendation The District should ensure the construction manager includes the weekly certified payroll submission requirement in their Project Manual. Also, the District should implement policies and procedures to ensure all certified payrolls are reviewed to ensure wages are paid according to federal wage rates. Views of Responsible Officials The District agrees with the recommendation.
Finding 2024-005
Material Weakness in Internal Control and Compliance Federal Program Education Stabilization Fund (AL 84.425U) Special Tests Criteria Uniform Guidance states “the contractor or 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)”. Condition We noted during inquiry and testing that contractors were not required to submit their certified payrolls on a weekly basis to the construction manager that oversaw the HVAC project. Questioned Costs None. Context During testing of the wage rate requirements, the Project Manual from the construction manager contained the Wage Rate Requirements, however, it didn’t specify the requirement for weekly certified payrolls; only certified payrolls needing to be submitted. Also, we inquired who reviews the submitted certified payrolls to ensure the rates are paid according to federal pay rates. We noted that the firm who the District hired to oversee the project was supposed to be in charge of this. However, during the inquiry of the firm, we noted that they do not review or sign off on these for accuracy. Cause Management oversight. Effect There is an increased risk of not paying appropriate wages to contractors working on the project. Repeat Finding No. Recommendation The District should ensure the construction manager includes the weekly certified payroll submission requirement in their Project Manual. Also, the District should implement policies and procedures to ensure all certified payrolls are reviewed to ensure wages are paid according to federal wage rates. Views of Responsible Officials The District agrees with the recommendation.