FAC Explorer

Audit 44470

FY End
2022-06-30
Total Expended
$4.34M
Findings
10
Programs
19
Organization: Grafton Public School District No. 18 (ND)
Year: 2022 Accepted: 2023-02-21
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43171 2022-002 Material Weakness - N
43172 2022-002 Material Weakness - N
43173 2022-002 Material Weakness - N
43174 2022-002 Material Weakness - N
43175 2022-002 Material Weakness - N
619613 2022-002 Material Weakness - N
619614 2022-002 Material Weakness - N
619615 2022-002 Material Weakness - N
619616 2022-002 Material Weakness - N
619617 2022-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $550,588 - 0
84.371 Striving Readers $313,847 - 0
84.011 Migrant Education_state Grant Program $249,915 - 0
84.287 Twenty-First Century Community Learning Centers $180,690 - 0
10.553 School Breakfast Program $168,001 - 0
84.367 Improving Teacher Quality State Grants $81,132 - 0
84.424 Student Support and Academic Enrichment Program $62,021 - 0
84.425 Education Stabilization Fund $49,510 Yes 1
10.582 Fresh Fruit and Vegetable Program $35,695 - 0
10.555 National School Lunch Program $34,224 - 0
66.040 State Clean Diesel Grant Program $20,845 - 0
84.369 Grants for State Assessments and Related Activities $15,001 - 0
84.365 English Language Acquisition State Grants $10,541 - 0
10.559 Summer Food Service Program for Children $6,312 - 0
84.358 Rural Education $5,747 - 0
84.048 Career and Technical Education -- Basic Grants to States $4,679 - 0
10.560 State Administrative Expenses for Child Nutrition $2,653 - 0
84.144 Migrant Education_coordination Program $2,514 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
W6MEY9G67ZN7 Cathi Heuchert Auditee
7013521930 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: Nonmonetary Transactions Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the"Schedule") are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown onthe Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District receives commodities through the food distribution program and the assistance isvalued at the fair value of the commodities received and disbursed.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the"Schedule") are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown onthe Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule includes the federal award activity of Grafton Public School District No. 18 underprograms of the federal government for the year ended June 30, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of Grafton Public School District No. 18, it is not intended toand does not present the financial position or changes in net position of the District.
Title: Reconciliation of Federal Revenues to the Schedule of Federal Awards Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the"Schedule") are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown onthe Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal Revenues per page 16 $ 4,373,835Internal Revenue Service Interest Subsidy on GeneralObligation School Bonds ( 31,119)Total Schedule of Expenditures of Federal Awards $ 4,342,716
Title: Pass-Through Entities Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards (the"Schedule") are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown onthe Schedule represent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All pass-through entities listed above use the same AL numbers as the federal grantors to identifythese grants, and have not assigned any additional identifying numbers.

Finding Details

Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities
Finding 2022-002
2022-002 Finding Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Special Tests and Provisions Criteria For construction contracts and subcontracts greater than $2,000, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Perspective The District had two construction projects funded under this program during the year. Both of which were tested and found to be deficient. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward. This will be monitored by the Superintendent and Head of Facilities