FAC Explorer

Audit 41710

FY End
2022-06-30
Total Expended
$200.30M
Findings
2
Programs
20
Organization: Cleveland Municipal School District (OH)
Year: 2022 Accepted: 2023-01-24
Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46602 2022-001 Material Weakness - N
623044 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $42.17M - 0
10.555 National School Lunch Program $14.77M - 0
84.027 Special Education_grants to States $13.54M - 0
10.553 School Breakfast Program $5.18M - 0
84.424 Student Support and Academic Enrichment Program $3.63M Yes 0
84.367 Supporting Effective Instruction State Grants $2.81M - 0
10.555 Covid-19 National School Lunch Program $2.52M - 0
84.048 Career and Technical Education -- Basic Grants to States $2.00M Yes 0
84.377 School Improvement Grants $1.14M - 0
84.365 English Language Acquisition State Grants $607,579 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $529,137 - 0
10.559 Summer Food Service Program for Children $371,719 - 0
84.173 Special Education_preschool Grants $367,043 - 0
84.196 Education for Homeless Children and Youth $346,054 - 0
12.000 Junior Rotc - 2022 $294,743 - 0
84.425 Covid-19 Education Stabilization Fund $183,575 Yes 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $141,584 - 0
84.371 Comprehensive Literacy Development $133,067 - 0
84.305 Education Research, Development and Dissemination $7,916 - 0
10.649 Covid-19 State Pandemic Electronic Benefit Transfer Administrative Grants $5,554 - 0

Contacts

Name Title Type
ESYAYXNJYTD9 Nathan Mortimer Auditee
2168380391 Douglas Chamot Auditor
No contacts on file

Notes to SEFA

Title: NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: NOTE C INDIRECT COST RATE Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District used a 2.94% indirect cost rate as allowed under 2 CFR, Ch I, Ch II, Part 200 Cost Principles, and Audit Requirements for Federal Awards.
Title: NOTE D - CHILD NUTRITION CLUSTER Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When reporting expenditures on this Schedule, the District assumes it expends federal monies first.
Title: NOTE E FOOD DONATION PROGRAM Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated food commodities to the respective program(s) that benefitted from the use of those donated food commodities.
Title: NOTE F - MATCHING REQUIREMENTS Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Certain Federal programs require the District to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The District has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.
Title: NOTE G - TRANSFERS BETWEEN PROGRAM YEARS Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cleveland Municipal School District (the Districts) under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 to and does not present the financial position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal regulations require schools to obligate certain federal awards by June 30. However, with ODEs consent, schools can transfer unobligated amounts to the subsequent fiscal years program. The District transferred the following amounts from 2022 to 2023 programs: Program Title ALN NumberAmount TransferredTitle I Grants to Local Educational Agencies84.010A3,716,934Special Education Grants to States84.027A2,260,961COVID 19 Special Education Grants to States84.027X2,703,979Special Education Preschool Grants84.173A47,869COVID 19 Special Education Preschool Grants84.173X200,464English Language Acquistion State Grants84.365A285,709Supporting Effective Instruction State Grants84.367A2,424,971Comprehensive Literacy Development84.371C399,343Student Support and Academic Enrichment Program84.424A585,688COVID 19 Education Stabilization Fund - ESSER II84.425D15,663,758COVID 19 Education Stabilization Fund - ARP84.425U232,012,118

Finding Details

Finding 2022-001
1. Prevailing Wage Rate Requirement Finding Number: 2022-001 Assistance Listing Number and Title: 84.425 Education Stabilization Fund Federal Award Identification Number / Year: N/A / 2022 Federal Agency: U.S. Department of Education Compliance Requirement: Special Test and Provisions- Wage Rate Requirements Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No NONCOMPLIANCE AND MATERIAL WEAKNESS 2 CFR ? 3474.1 provides that the Department of Education (DOE) adopts the Office of Management and Budget (OMB) Guidance in 2 CFR part 200. Thus, this section gives regulatory effect to the OMB guidance and supplements the guidance as needed for the DOE, except as otherwise noted in that section. Appendix II to 2 CFR part 200, Paragraph D states that all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following: (D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. . . The District entered into a contract with Panzica Construction Company for installation of kitchen equipment for East Tech Culinary Art Renovation project, in the amount of $783,659. During fiscal year 2022, the District paid Panzica $58,207 with Elementary and Secondary School Emergency Relief (ESSER II) Fund monies related to this project. These expenditures included contractor payroll charges for periods prior to June 30, 2022. However, due to the lack of formal controls and procedures, the District did not obtain the certified payroll information until December 12, 2022. This weakness resulted in the District being non-compliant with the aforementioned federal codes and could result in future reductions or loss of federal funding. The District should ensure certified payroll reports are provided weekly by the contractor. The District should obtain the necessary information from the contractor to document compliance with the program requirements and if the contractor failed to comply then they have an obligation under Appendix II to 2 CFR part 200 to report all suspected or reported violations to the Federal awarding agency.
Finding 2022-001
1. Prevailing Wage Rate Requirement Finding Number: 2022-001 Assistance Listing Number and Title: 84.425 Education Stabilization Fund Federal Award Identification Number / Year: N/A / 2022 Federal Agency: U.S. Department of Education Compliance Requirement: Special Test and Provisions- Wage Rate Requirements Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No NONCOMPLIANCE AND MATERIAL WEAKNESS 2 CFR ? 3474.1 provides that the Department of Education (DOE) adopts the Office of Management and Budget (OMB) Guidance in 2 CFR part 200. Thus, this section gives regulatory effect to the OMB guidance and supplements the guidance as needed for the DOE, except as otherwise noted in that section. Appendix II to 2 CFR part 200, Paragraph D states that all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following: (D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, ?Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction?). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. . . The District entered into a contract with Panzica Construction Company for installation of kitchen equipment for East Tech Culinary Art Renovation project, in the amount of $783,659. During fiscal year 2022, the District paid Panzica $58,207 with Elementary and Secondary School Emergency Relief (ESSER II) Fund monies related to this project. These expenditures included contractor payroll charges for periods prior to June 30, 2022. However, due to the lack of formal controls and procedures, the District did not obtain the certified payroll information until December 12, 2022. This weakness resulted in the District being non-compliant with the aforementioned federal codes and could result in future reductions or loss of federal funding. The District should ensure certified payroll reports are provided weekly by the contractor. The District should obtain the necessary information from the contractor to document compliance with the program requirements and if the contractor failed to comply then they have an obligation under Appendix II to 2 CFR part 200 to report all suspected or reported violations to the Federal awarding agency.