Audit 47412

FY End
2022-06-30
Total Expended
$4.42M
Findings
14
Programs
9
Year: 2022 Accepted: 2023-05-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45631 2022-003 Material Weakness - F
45632 2022-004 Material Weakness - N
45633 2022-002 Material Weakness - F
45634 2022-002 Material Weakness - F
45635 2022-002 Material Weakness - F
45636 2022-002 Material Weakness - F
45637 2022-002 Material Weakness - F
622073 2022-003 Material Weakness - F
622074 2022-004 Material Weakness - N
622075 2022-002 Material Weakness - F
622076 2022-002 Material Weakness - F
622077 2022-002 Material Weakness - F
622078 2022-002 Material Weakness - F
622079 2022-002 Material Weakness - F

Programs

ALN Program Spent Major Findings
93.600 Head Start $83,067 Yes 1
93.310 Trans-Nih Research Support $64,345 - 0
84.027 Special Education_grants to States $58,044 - 0
84.173 Special Education_preschool Grants $17,717 - 0
93.575 Child Care and Development Block Grant $17,145 - 0
10.558 Child and Adult Care Food Program $9,291 - 0
84.010 Title I Grants to Local Educational Agencies $9,147 - 0
84.425 Education Stabilization Fund $8,564 Yes 0
93.590 Community-Based Child Abuse Prevention Grants $990 - 0

Contacts

Name Title Type
DGTNDNHRY3B3 Teresa McGinnis Auditee
7407970064 Denise Blair Auditor
No contacts on file

Notes to SEFA

Title: NOTE D - 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 Athens-Meigs Educational Service Center (the Center) 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 Government, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Center. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Certain Federal programs require the Center to contribute non-Federal funds (matching funds) to support the Federally funded programs. The Center has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.
Title: NOTE E - 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 Athens-Meigs Educational Service Center (the Center) 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 Government, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Center. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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. 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 2021 to 2022 programs: Program TitleCFDA NumberAmt. Carried overGovernor's Emergency Education Relief84.425 $ 141,555.68 ESSER ESC Family Engagement Liaisons84.425 $ 60,030.09

Finding Details

Equipment Management Finding Number: 2022-003 Assistance Listing Number and Title: AL # 84.425C, Education Stabilization Fund- Governor's Emergency Education Relief Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Education Compliance Requirement: Section F: Equipment and Real Property Management Pass Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The Center purchased a heat pump and three furnaces in the amount of $25,000 using their Governor's Emergency Education Relief (AL#84.425C) federal funding; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital assert records.
Wage Rate Requirements Finding Number: 2022-004 Assistance Listing Number and Title: AL # 84.425C, Education Stabilization Fund- Governor's Emergency Education Relief Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department Of Education Compliance Requirement: Section N: Wage Rate Requirements Pass Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. ? 200 Paragraph D which states: (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 Provision Applicable to Contract 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 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 contracts must also include a provision for compliance with the Copeland "Anti-Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 2 CFR ? 176.190 provides that wage rate requirements under Section 1606 of the Recovery Act indicates when issuing announcements or requesting applications for Recovery Act programs or activities that may involve construction, alteration, maintenance, or repair the agency shall use the award term described in the following paragraphs: (a) Section 1606 of the Recovery Act requires that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to the Recovery Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. The Center expended $6,000 of its Education Stabilization Fund -Governors Emergency Education Relief Fund (GEER) AL# 84.425C federal grant 2022 funds to Hendrix Heating and Cooling for a heat pump system installation. Due to a lack of proper internal controls, the Center?s contract with this vendor for this project did not include a provision to ensure the contactor complied with Federal wage rate requirements. During fiscal year 2022, the Center also had a contract with Hendrix Heating and Cooling to install three gas furnaces. While that contract included the provision to ensure the contactor complied with Federal wage rate requirements, Hendrix Heating and Cooling did not provide to the Center the required weekly certified payroll reports for the heat pump system installation or for the installation of the gas furnaces. Failure to notify contractors of the wage rate requirements or monitor compliance may result in noncompliance with the prevailing wage requirements as well as potentially reduced future federal funding. The Center should ensure contracts for construction in excess of $2,000 contain a provision the contractor comply with the Wage Rate Requirements and ensure certified payroll reports are provided weekly by the contractor. The Center 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 29 CFR Part 5 to report all suspected or reported violations to the Federal awarding agency.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-003 Assistance Listing Number and Title: AL # 84.425C, Education Stabilization Fund- Governor's Emergency Education Relief Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Education Compliance Requirement: Section F: Equipment and Real Property Management Pass Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR ? 200.313(d)(1) which provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the Federal award identification number), who holds title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The Center purchased a heat pump and three furnaces in the amount of $25,000 using their Governor's Emergency Education Relief (AL#84.425C) federal funding; however, they failed to add these assets to their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital additions are properly documented in the capital assert records.
Wage Rate Requirements Finding Number: 2022-004 Assistance Listing Number and Title: AL # 84.425C, Education Stabilization Fund- Governor's Emergency Education Relief Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department Of Education Compliance Requirement: Section N: Wage Rate Requirements Pass Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. ? 200 Paragraph D which states: (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 Provision Applicable to Contract 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 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 contracts must also include a provision for compliance with the Copeland "Anti-Kickback" Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 2 CFR ? 176.190 provides that wage rate requirements under Section 1606 of the Recovery Act indicates when issuing announcements or requesting applications for Recovery Act programs or activities that may involve construction, alteration, maintenance, or repair the agency shall use the award term described in the following paragraphs: (a) Section 1606 of the Recovery Act requires that all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to the Recovery Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. The Center expended $6,000 of its Education Stabilization Fund -Governors Emergency Education Relief Fund (GEER) AL# 84.425C federal grant 2022 funds to Hendrix Heating and Cooling for a heat pump system installation. Due to a lack of proper internal controls, the Center?s contract with this vendor for this project did not include a provision to ensure the contactor complied with Federal wage rate requirements. During fiscal year 2022, the Center also had a contract with Hendrix Heating and Cooling to install three gas furnaces. While that contract included the provision to ensure the contactor complied with Federal wage rate requirements, Hendrix Heating and Cooling did not provide to the Center the required weekly certified payroll reports for the heat pump system installation or for the installation of the gas furnaces. Failure to notify contractors of the wage rate requirements or monitor compliance may result in noncompliance with the prevailing wage requirements as well as potentially reduced future federal funding. The Center should ensure contracts for construction in excess of $2,000 contain a provision the contractor comply with the Wage Rate Requirements and ensure certified payroll reports are provided weekly by the contractor. The Center 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 29 CFR Part 5 to report all suspected or reported violations to the Federal awarding agency.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.
Equipment Management Finding Number: 2022-002 Assistance Listing Number and Title: AL # 93.600, Head Start Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Health And Human Services Compliance Requirement: Section F: Equipment and Real Property Management Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 45 CFR ? 75.320(d)(1) provides that property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. The Center sold fully depreciated buses with an original cost of $403,468 from Head Start (AL #93.600); however, they failed to remove these assets from their capital asset listing due to a failure in adequately designed controls. The failure to properly record assets can lead to difficulties maintaining accountability for the related assets. The Treasurer and Superintendent should monitor transactions and ensure that all capital disposals are properly documented and removed from capital assert records.