FAC Explorer

Audit 47008

FY End
2022-06-30
Total Expended
$2.80M
Findings
2
Programs
15
Organization: Coquille School District No. 8 (OR)
Year: 2022 Accepted: 2023-01-04
Auditor: Hmw CPAS & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45351 2022-001 Significant Deficiency - F
621793 2022-001 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $347,907 Yes 1
84.010 Title I Grants to Local Educational Agencies $294,899 - 0
84.027 Special Education_grants to States $217,783 - 0
10.553 School Breakfast Program $154,774 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $100,000 - 0
10.555 National School Lunch Program $50,210 - 0
84.367 Improving Teacher Quality State Grants $42,137 - 0
10.559 Summer Food Service Program for Children $27,480 - 0
84.060 Indian Education_grants to Local Educational Agencies $20,803 - 0
84.424 Student Support and Academic Enrichment Program $19,539 - 0
93.575 Child Care and Development Block Grant $17,213 - 0
10.558 Child and Adult Care Food Program $16,224 - 0
39.003 Donation of Federal Surplus Personal Property $11,354 - 0
84.173 Special Education_preschool Grants $3,466 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
FTXKZSPK2884 Jerod Nunn Auditee
5413962181 Laura Fisher Auditor
No contacts on file

Notes to SEFA

Accounting Policies: COQUILLE SCHOOL DISTRICT NO. 8NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Fiscal Year Ended June 30, 2022Note 1.Purpose of the Schedule The accompanying schedule of expenditures of federal awards includes the federal grant activity of Coquille School District No. 8 for the year ended June 30, 2022. Note 2.Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Coquille School District No. 8 and is presented on the modified accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Note 3. SubrecipientsDuring the year ended June 30, 2022, the District did not provide any financial awards to subrecipients.Note 4. De Minimis Cost RateThe District did not elect to use the 10% de minimus indirect cost rate during the 2021-22 fiscal year.Note 5.Interest Subsidy Interest subsidies related to the Qualified School Construction Bonds are funded through the Hiring Incentives to Restore Employment Act (HIRE) and are now listed on the schedule. These amounts are disbursed directly to the lender and do not pass through the District. Note 6. Major ProgramsUniform Guidance established criteria to be used in defining major federal financial assistance programs. Major programs for the District are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes.Note 6. Nonmonetary AssistanceThe District is the recipient of federal financial assistance programs that do not result in cash receipts or disbursements and are therefore not recorded in the Districts fund financial statements. Awards received by the District, which include noncash amounts are: AL NumberProgram NameGrant Award39.003Donation of federal surplus personal property $11,354 10.555Child nutrition program - commodities 20,210.00 Total nonmonetary assistance $61,564 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
US Department of Education Passed through Oregon Department of Education Program Name: Assistance Listing Number 84.425 - COVID-19 Education Stabilization Fund Cluster - Elementary and Secondary School Relief Fund # 2022-001 - Significant Deficiency in Internal Control over Compliance with Equipment/Real Property Management Criteria ? Uniform Grant Guidance requires that subrecipients that use ESF/ESSER funds for minor remodeling, renovation or construction contracts over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Condition ? The District purchased services from an electrical contracting company related to newly installed modular buildings, paid them an amount over $2,000 and did not instruct the company that Davis-Bacon prevailing wage applied. Effect ? The District?s failure to comply with these requirements may have resulted in the electrical company?s personnel being paid less than Davis-Bacon wages. Cause ?District staff were not aware of the $2,000 threshold for this requirement. Perspective ? Only two of the expenses charged to this grant fall under this requirement. The one tested by the auditors was for $64,000, the other was much smaller. Auditor noted during work in other areas of the audit that the District was aware of prevailing wage requirements on larger contracts. This appears to have been an oversight, due to the size of the contract and management?s misunderstanding of the threshold. Recommendation ? Auditor recommends District staff in charge of federal grant compliance, annually review the OMB federal grant compliance supplement, specifically Part 3, Compliance Requirements. A member of management should be assigned with the responsibility to ensure all applicable compliance requirements are met. Management?s response: Management agrees with the finding. In January of each year the Fiscal Director, Jerod Nunn, will meet with the grant manager and review the Office of Management and Budget?s compliance supplement. Any changes and/or updates will be noted in the Federal grant files and will be properly followed so the district is in compliance with the Davis-Bacon and Related Acts and Reorganization Plan Regulations.
Finding 2022-001
US Department of Education Passed through Oregon Department of Education Program Name: Assistance Listing Number 84.425 - COVID-19 Education Stabilization Fund Cluster - Elementary and Secondary School Relief Fund # 2022-001 - Significant Deficiency in Internal Control over Compliance with Equipment/Real Property Management Criteria ? Uniform Grant Guidance requires that subrecipients that use ESF/ESSER funds for minor remodeling, renovation or construction contracts over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Condition ? The District purchased services from an electrical contracting company related to newly installed modular buildings, paid them an amount over $2,000 and did not instruct the company that Davis-Bacon prevailing wage applied. Effect ? The District?s failure to comply with these requirements may have resulted in the electrical company?s personnel being paid less than Davis-Bacon wages. Cause ?District staff were not aware of the $2,000 threshold for this requirement. Perspective ? Only two of the expenses charged to this grant fall under this requirement. The one tested by the auditors was for $64,000, the other was much smaller. Auditor noted during work in other areas of the audit that the District was aware of prevailing wage requirements on larger contracts. This appears to have been an oversight, due to the size of the contract and management?s misunderstanding of the threshold. Recommendation ? Auditor recommends District staff in charge of federal grant compliance, annually review the OMB federal grant compliance supplement, specifically Part 3, Compliance Requirements. A member of management should be assigned with the responsibility to ensure all applicable compliance requirements are met. Management?s response: Management agrees with the finding. In January of each year the Fiscal Director, Jerod Nunn, will meet with the grant manager and review the Office of Management and Budget?s compliance supplement. Any changes and/or updates will be noted in the Federal grant files and will be properly followed so the district is in compliance with the Davis-Bacon and Related Acts and Reorganization Plan Regulations.