FAC Explorer

Audit 360698

FY End
2024-09-30
Total Expended
$2.67M
Findings
4
Programs
11
Organization: Linden City Board of Education (AL)
Year: 2024 Accepted: 2025-06-30
Auditor: Mason and Gardner CPAS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
569043 2024-003 Material Weakness - N
569044 2024-004 Material Weakness - L
1145485 2024-003 Material Weakness - N
1145486 2024-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.53M Yes 2
84.010 Title I Grants to Local Educational Agencies $547,112 - 0
10.555 National School Lunch Program $267,371 - 0
84.027 Special Education Grants to States $144,340 - 0
10.553 School Breakfast Program $84,312 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $45,586 - 0
84.424 Student Support and Academic Enrichment Program $25,842 - 0
84.173 Special Education Preschool Grants $11,832 - 0
84.358 Rural Education $8,455 - 0
10.574 Team Nutrition Grants $2,981 - 0
96.001 Social Security Disability Insurance $220 - 0

Contacts

Name Title Type
Y564ML1HRMC6 Lakendra Raby Auditee
3342958802 Carolyn L Fitz-Gerald Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Summary of Significant Accounting Policies Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Linden City Board of Education under programs of the federal government for the year ended September 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 the Linden City Board of Education, it is not intended to and does not present the financial position or changes in net position of the Linden City Board of Education. Basis of Accounting Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Indirect Cost Rate The Linden City Board of Education did not elect to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rate approved by the State of Alabama Department of Education. Non-Cash Assistance The Board is the recipient of certain non-cash assistance in the form of donated commodities received from the U.S. Department of Agriculture. Revenues and expenditures are recorded for the value of commodities received, which was $24,499 for the year ended September 30, 2024, and is included Assistance Listing Number 10.555, National School Lunch Program, in the Schedule. De Minimis Rate Used: N Rate Explanation: Negotiated rate of 16.51% for unrestricted programs and 1.06% for restricted programs. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Linden City Board of Education under programs of the federal government for the year ended September 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 the Linden City Board of Education, it is not intended to and does not present the financial position or changes in net position of the Linden City Board of Education.
Title: Basis of Accounting Accounting Policies: Summary of Significant Accounting Policies Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Linden City Board of Education under programs of the federal government for the year ended September 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 the Linden City Board of Education, it is not intended to and does not present the financial position or changes in net position of the Linden City Board of Education. Basis of Accounting Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Indirect Cost Rate The Linden City Board of Education did not elect to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rate approved by the State of Alabama Department of Education. Non-Cash Assistance The Board is the recipient of certain non-cash assistance in the form of donated commodities received from the U.S. Department of Agriculture. Revenues and expenditures are recorded for the value of commodities received, which was $24,499 for the year ended September 30, 2024, and is included Assistance Listing Number 10.555, National School Lunch Program, in the Schedule. De Minimis Rate Used: N Rate Explanation: Negotiated rate of 16.51% for unrestricted programs and 1.06% for restricted programs. Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Summary of Significant Accounting Policies Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Linden City Board of Education under programs of the federal government for the year ended September 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 the Linden City Board of Education, it is not intended to and does not present the financial position or changes in net position of the Linden City Board of Education. Basis of Accounting Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Indirect Cost Rate The Linden City Board of Education did not elect to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rate approved by the State of Alabama Department of Education. Non-Cash Assistance The Board is the recipient of certain non-cash assistance in the form of donated commodities received from the U.S. Department of Agriculture. Revenues and expenditures are recorded for the value of commodities received, which was $24,499 for the year ended September 30, 2024, and is included Assistance Listing Number 10.555, National School Lunch Program, in the Schedule. De Minimis Rate Used: N Rate Explanation: Negotiated rate of 16.51% for unrestricted programs and 1.06% for restricted programs. The Linden City Board of Education did not elect to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rate approved by the State of Alabama Department of Education.
Title: Non-Cash Assistance Accounting Policies: Summary of Significant Accounting Policies Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Linden City Board of Education under programs of the federal government for the year ended September 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 the Linden City Board of Education, it is not intended to and does not present the financial position or changes in net position of the Linden City Board of Education. Basis of Accounting Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. Indirect Cost Rate The Linden City Board of Education did not elect to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance; instead, the Board is using an indirect cost rate approved by the State of Alabama Department of Education. Non-Cash Assistance The Board is the recipient of certain non-cash assistance in the form of donated commodities received from the U.S. Department of Agriculture. Revenues and expenditures are recorded for the value of commodities received, which was $24,499 for the year ended September 30, 2024, and is included Assistance Listing Number 10.555, National School Lunch Program, in the Schedule. De Minimis Rate Used: N Rate Explanation: Negotiated rate of 16.51% for unrestricted programs and 1.06% for restricted programs. The Board is the recipient of certain non-cash assistance in the form of donated commodities received from the U.S. Department of Agriculture. Revenues and expenditures are recorded for the value of commodities received, which was $24,499 for the year ended September 30, 2024, and is included Assistance Listing Number 10.555, National School Lunch Program, in the Schedule.

Finding Details

Finding 2024-003
Reference Number: 2024-03 Compliance Requirement: Special Test and Provisions Type of Finding: Internal control and Compliance Internal Control Impact: Material weakness Compliance Impact: Material noncompliance . AL Number and Title: 84.425 – COVID-19 Education Stabilization Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: $732,427 Condition: Construction contracts for three federally funded projects did not include the required prevailing wage rate clauses. Monitoring for compliance with the prevailing wage requirements was not performed by the Board. Criteria: Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts and Provisions and Procedures (the “Davis-Bacon Act”) requires that any construction contract in excess of $2,000, funded wholly or in part by federal funds, include prevailing wage rate clauses. The Davis-Bacon Act requires that laborers and mechanics employed by contractors or subcontractors working on projects that meet this criteria must be paid wages not less than those established for the locality by the Department of Labor (DOL). In addition, the contractor and subcontractors must submit weekly certified payrolls, for each week in which any contract work is performed, to the nonfederal entity. Cause: During the year, the Board had three projects that were funded at least in part with federal funds. The Board did not have sufficient internal controls in place to ensure that the Davis-Bacon Act wage rate requirements were included in the contracts and that the appropriate monitoring of certified payrolls was performed. As a result, those clauses were not included in the contracts. When the Board became aware, at the end of the previous fiscal year, that the Davis-Bacon Act applied to these projects, the project contracts were not modified, but the contractor was notified that the Davis-Bacon Act requirements must be met. The contractor prepared certified payrolls for each week that work was performed, but these payrolls were not requested by the Board or submitted to the Board for review. Effect: The Board was not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements. Recommendation: The Board should devise controls to ensure construction contracts funded with federal sources include the required Davis-Bacon Act language and should implement controls to ensure that the required certified payrolls are received and reviewed by the Federal Programs Coordinator. Client Response: We agree with this finding.
Finding 2024-004
Reference Number: 2024-04 Compliance Requirement: Reporting Type of Finding: Internal control and Compliance Internal Control Impact: Material weakness Compliance Impact: Material Noncompliance . AL Number and Title: 84.425 – COVID-19 Education Stabilization Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: None Condition: The Board could not provide a copy, with supporting documentation, of the annual required information submission to the Alabama Department of Education for the federal program. Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Cause: Internal controls are not in place to ensure that the reports submitted to the pass-through entity are adequately supported by information derived from the accounting system. No evidence of review by someone other than the preparer is maintained. Effect: Information provided to the Alabama Department of Education may be incorrect or incomplete or not submitted timely. Recommendation: Internal controls should be developed to ensure that reports are completed and submitted timely, are supported by information derived from the accounting system, and are reviewed and approved prior to being submitted to the State of Alabama. Client Response: We agree with this finding.
Finding 2024-003
Reference Number: 2024-03 Compliance Requirement: Special Test and Provisions Type of Finding: Internal control and Compliance Internal Control Impact: Material weakness Compliance Impact: Material noncompliance . AL Number and Title: 84.425 – COVID-19 Education Stabilization Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: $732,427 Condition: Construction contracts for three federally funded projects did not include the required prevailing wage rate clauses. Monitoring for compliance with the prevailing wage requirements was not performed by the Board. Criteria: Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts and Provisions and Procedures (the “Davis-Bacon Act”) requires that any construction contract in excess of $2,000, funded wholly or in part by federal funds, include prevailing wage rate clauses. The Davis-Bacon Act requires that laborers and mechanics employed by contractors or subcontractors working on projects that meet this criteria must be paid wages not less than those established for the locality by the Department of Labor (DOL). In addition, the contractor and subcontractors must submit weekly certified payrolls, for each week in which any contract work is performed, to the nonfederal entity. Cause: During the year, the Board had three projects that were funded at least in part with federal funds. The Board did not have sufficient internal controls in place to ensure that the Davis-Bacon Act wage rate requirements were included in the contracts and that the appropriate monitoring of certified payrolls was performed. As a result, those clauses were not included in the contracts. When the Board became aware, at the end of the previous fiscal year, that the Davis-Bacon Act applied to these projects, the project contracts were not modified, but the contractor was notified that the Davis-Bacon Act requirements must be met. The contractor prepared certified payrolls for each week that work was performed, but these payrolls were not requested by the Board or submitted to the Board for review. Effect: The Board was not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements. Recommendation: The Board should devise controls to ensure construction contracts funded with federal sources include the required Davis-Bacon Act language and should implement controls to ensure that the required certified payrolls are received and reviewed by the Federal Programs Coordinator. Client Response: We agree with this finding.
Finding 2024-004
Reference Number: 2024-04 Compliance Requirement: Reporting Type of Finding: Internal control and Compliance Internal Control Impact: Material weakness Compliance Impact: Material Noncompliance . AL Number and Title: 84.425 – COVID-19 Education Stabilization Fund Federal Awarding Agency: U.S. Department of Education Federal Award Number: None Pass-through Entity: Alabama Department of Education Pass-through Award Number: None Questioned Costs: None Condition: The Board could not provide a copy, with supporting documentation, of the annual required information submission to the Alabama Department of Education for the federal program. Criteria: Per 2 CFR § 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Cause: Internal controls are not in place to ensure that the reports submitted to the pass-through entity are adequately supported by information derived from the accounting system. No evidence of review by someone other than the preparer is maintained. Effect: Information provided to the Alabama Department of Education may be incorrect or incomplete or not submitted timely. Recommendation: Internal controls should be developed to ensure that reports are completed and submitted timely, are supported by information derived from the accounting system, and are reviewed and approved prior to being submitted to the State of Alabama. Client Response: We agree with this finding.