Audit 357791

2024-003 Late Report Issuance Fiscal Year Finding Initially Occurred 2024 Criteria: OMB Uniform Guidance requires that audits be submitted within nine months of the close of the School Board’s fiscal year. Condition: The School Board failed to submit its annual financial report to the Federal Audit Clearinghouse by the statutory deadline. Cause: The overall condition of the School Board’s financial records prohibited the School Board’s CPA consultant from providing timely and accurate information to the School Board’s auditors. Effect: The School Board is not in compliance with Uniform Guidance. Recommendation: The School Board should take the necessary steps to ensure that all financial records are accurate and made available to the School Board’s auditors well in advance of the statutory deadline to allow for timely completion of the audit. Views of Responsible Officials: The School System is in the process of hiring adequate staffing resources and is working with a CPA to assist with reconciling and closing financial records timely to ensure that all financial records are accurate and available for auditors. Additionally, the CPA and staff will work diligently with the auditor to allow completion and submission of the audit report by the required deadline.

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Allowable Costs/Activities Allowed Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: Uniform Guidance requires recipients to establish and maintain effective internal control over Federal awards and to support payroll costs charged to grants with “records that accurately reflect the work performed”. The School Board’s procedures require review of each time sheet for reasonableness, grant allowability, and proper allocation prior to posting to the general ledger, and document the review by signing or initialing and dating the time sheet. Condition: During our testing, it was determined that one timesheet was reviewed but was not signed and dated in accordance with the School Board policy. Cause: The School Board’s staff reviewed the timesheet making corrections and oversight resulted in the missing signature. Effect: Lack of proper review increases the risk that unallowable or inaccurately allocated labor costs could remain undetected and charged to the Federal award. Recommendation: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Views of Responsible Officials: The School System has implemented necessary controls to ensure that all documents and official forms for payroll contain the necessary approvals prior to processing timesheets for payment.

2024-003 Late Report Issuance Fiscal Year Finding Initially Occurred 2024 Criteria: OMB Uniform Guidance requires that audits be submitted within nine months of the close of the School Board’s fiscal year. Condition: The School Board failed to submit its annual financial report to the Federal Audit Clearinghouse by the statutory deadline. Cause: The overall condition of the School Board’s financial records prohibited the School Board’s CPA consultant from providing timely and accurate information to the School Board’s auditors. Effect: The School Board is not in compliance with Uniform Guidance. Recommendation: The School Board should take the necessary steps to ensure that all financial records are accurate and made available to the School Board’s auditors well in advance of the statutory deadline to allow for timely completion of the audit. Views of Responsible Officials: The School System is in the process of hiring adequate staffing resources and is working with a CPA to assist with reconciling and closing financial records timely to ensure that all financial records are accurate and available for auditors. Additionally, the CPA and staff will work diligently with the auditor to allow completion and submission of the audit report by the required deadline.

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Special Tests & Provisions – Davis-Bacon Act Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: For construction contracts financed in whole or in part with federal funds exceeding $2,000, the Davis-Bacon Act requires the grantee to: (1) Obtain weekly certified payrolls from each contractor and subcontractor. (2) Review those payrolls to verify that employees are paid at least the prevailing wage and fringe benefits for the corresponding labor classifications. Condition: During our testing, it was determined that the payrolls were not monitored timely to ensure that employees were paid the prevailing wage rate. Cause: The School Board’s grant administration team lacks formally documented procedures and training related to Davis-Bacon compliance. Effect: Lack of timely monitoring of the payrolls could result in underpayment of wages due during the contract period to the contractor and not qualifying for reimbursement from the grantor. Recommendation: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Views of Responsible Officials: The School System’s grant administration team will complete the necessary training related to Davis-Bacon to ensure that contractors are in compliance with the Davis Bacon Act.

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Allowable Costs/Activities Allowed Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: Uniform Guidance requires recipients to establish and maintain effective internal control over Federal awards and to support payroll costs charged to grants with “records that accurately reflect the work performed”. The School Board’s procedures require review of each time sheet for reasonableness, grant allowability, and proper allocation prior to posting to the general ledger, and document the review by signing or initialing and dating the time sheet. Condition: During our testing, it was determined that one timesheet was reviewed but was not signed and dated in accordance with the School Board policy. Cause: The School Board’s staff reviewed the timesheet making corrections and oversight resulted in the missing signature. Effect: Lack of proper review increases the risk that unallowable or inaccurately allocated labor costs could remain undetected and charged to the Federal award. Recommendation: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Views of Responsible Officials: The School System has implemented necessary controls to ensure that all documents and official forms for payroll contain the necessary approvals prior to processing timesheets for payment.

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Special Tests & Provisions – Davis-Bacon Act Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: For construction contracts financed in whole or in part with federal funds exceeding $2,000, the Davis-Bacon Act requires the grantee to: (1) Obtain weekly certified payrolls from each contractor and subcontractor. (2) Review those payrolls to verify that employees are paid at least the prevailing wage and fringe benefits for the corresponding labor classifications. Condition: During our testing, it was determined that the payrolls were not monitored timely to ensure that employees were paid the prevailing wage rate. Cause: The School Board’s grant administration team lacks formally documented procedures and training related to Davis-Bacon compliance. Effect: Lack of timely monitoring of the payrolls could result in underpayment of wages due during the contract period to the contractor and not qualifying for reimbursement from the grantor. Recommendation: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Views of Responsible Officials: The School System’s grant administration team will complete the necessary training related to Davis-Bacon to ensure that contractors are in compliance with the Davis Bacon Act.

2024-003 Late Report Issuance Fiscal Year Finding Initially Occurred 2024 Criteria: OMB Uniform Guidance requires that audits be submitted within nine months of the close of the School Board’s fiscal year. Condition: The School Board failed to submit its annual financial report to the Federal Audit Clearinghouse by the statutory deadline. Cause: The overall condition of the School Board’s financial records prohibited the School Board’s CPA consultant from providing timely and accurate information to the School Board’s auditors. Effect: The School Board is not in compliance with Uniform Guidance. Recommendation: The School Board should take the necessary steps to ensure that all financial records are accurate and made available to the School Board’s auditors well in advance of the statutory deadline to allow for timely completion of the audit. Views of Responsible Officials: The School System is in the process of hiring adequate staffing resources and is working with a CPA to assist with reconciling and closing financial records timely to ensure that all financial records are accurate and available for auditors. Additionally, the CPA and staff will work diligently with the auditor to allow completion and submission of the audit report by the required deadline.

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Allowable Costs/Activities Allowed Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: Uniform Guidance requires recipients to establish and maintain effective internal control over Federal awards and to support payroll costs charged to grants with “records that accurately reflect the work performed”. The School Board’s procedures require review of each time sheet for reasonableness, grant allowability, and proper allocation prior to posting to the general ledger, and document the review by signing or initialing and dating the time sheet. Condition: During our testing, it was determined that one timesheet was reviewed but was not signed and dated in accordance with the School Board policy. Cause: The School Board’s staff reviewed the timesheet making corrections and oversight resulted in the missing signature. Effect: Lack of proper review increases the risk that unallowable or inaccurately allocated labor costs could remain undetected and charged to the Federal award. Recommendation: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Views of Responsible Officials: The School System has implemented necessary controls to ensure that all documents and official forms for payroll contain the necessary approvals prior to processing timesheets for payment.

2024-003 Late Report Issuance Fiscal Year Finding Initially Occurred 2024 Criteria: OMB Uniform Guidance requires that audits be submitted within nine months of the close of the School Board’s fiscal year. Condition: The School Board failed to submit its annual financial report to the Federal Audit Clearinghouse by the statutory deadline. Cause: The overall condition of the School Board’s financial records prohibited the School Board’s CPA consultant from providing timely and accurate information to the School Board’s auditors. Effect: The School Board is not in compliance with Uniform Guidance. Recommendation: The School Board should take the necessary steps to ensure that all financial records are accurate and made available to the School Board’s auditors well in advance of the statutory deadline to allow for timely completion of the audit. Views of Responsible Officials: The School System is in the process of hiring adequate staffing resources and is working with a CPA to assist with reconciling and closing financial records timely to ensure that all financial records are accurate and available for auditors. Additionally, the CPA and staff will work diligently with the auditor to allow completion and submission of the audit report by the required deadline.

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Special Tests & Provisions – Davis-Bacon Act Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: For construction contracts financed in whole or in part with federal funds exceeding $2,000, the Davis-Bacon Act requires the grantee to: (1) Obtain weekly certified payrolls from each contractor and subcontractor. (2) Review those payrolls to verify that employees are paid at least the prevailing wage and fringe benefits for the corresponding labor classifications. Condition: During our testing, it was determined that the payrolls were not monitored timely to ensure that employees were paid the prevailing wage rate. Cause: The School Board’s grant administration team lacks formally documented procedures and training related to Davis-Bacon compliance. Effect: Lack of timely monitoring of the payrolls could result in underpayment of wages due during the contract period to the contractor and not qualifying for reimbursement from the grantor. Recommendation: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Views of Responsible Officials: The School System’s grant administration team will complete the necessary training related to Davis-Bacon to ensure that contractors are in compliance with the Davis Bacon Act.

2024-005 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Allowable Costs/Activities Allowed Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: Uniform Guidance requires recipients to establish and maintain effective internal control over Federal awards and to support payroll costs charged to grants with “records that accurately reflect the work performed”. The School Board’s procedures require review of each time sheet for reasonableness, grant allowability, and proper allocation prior to posting to the general ledger, and document the review by signing or initialing and dating the time sheet. Condition: During our testing, it was determined that one timesheet was reviewed but was not signed and dated in accordance with the School Board policy. Cause: The School Board’s staff reviewed the timesheet making corrections and oversight resulted in the missing signature. Effect: Lack of proper review increases the risk that unallowable or inaccurately allocated labor costs could remain undetected and charged to the Federal award. Recommendation: The School Board should take steps to ensure that all required approvals are properly documented on official forms. Views of Responsible Officials: The School System has implemented necessary controls to ensure that all documents and official forms for payroll contain the necessary approvals prior to processing timesheets for payment.

2024-004 Education Stabilization Fund – COVID 19 – Assistance Listing No. 84.425 Compliance Requirement: Special Tests & Provisions – Davis-Bacon Act Type of Finding: Significant Deficiency in Internal Control Over Compliance Fiscal Year Finding Initially Occurred 2024 Criteria: For construction contracts financed in whole or in part with federal funds exceeding $2,000, the Davis-Bacon Act requires the grantee to: (1) Obtain weekly certified payrolls from each contractor and subcontractor. (2) Review those payrolls to verify that employees are paid at least the prevailing wage and fringe benefits for the corresponding labor classifications. Condition: During our testing, it was determined that the payrolls were not monitored timely to ensure that employees were paid the prevailing wage rate. Cause: The School Board’s grant administration team lacks formally documented procedures and training related to Davis-Bacon compliance. Effect: Lack of timely monitoring of the payrolls could result in underpayment of wages due during the contract period to the contractor and not qualifying for reimbursement from the grantor. Recommendation: The School Board should take the necessary steps to ensure that staff are appropriately trained and contractor payrolls are monitored timely. Views of Responsible Officials: The School System’s grant administration team will complete the necessary training related to Davis-Bacon to ensure that contractors are in compliance with the Davis Bacon Act.