FAC Explorer

Audit 49017

FY End
2022-06-30
Total Expended
$4.07M
Findings
4
Programs
12
Organization: Morrow County School District No. 1 (OR)
Year: 2022 Accepted: 2023-01-25
Auditor: Dickey and Tremper LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42636 2022-003 Material Weakness - N
42637 2022-004 Significant Deficiency - B
619078 2022-003 Material Weakness - N
619079 2022-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $482,583 Yes 0
10.553 School Breakfast Program $374,767 Yes 0
10.555 National School Lunch Program $99,742 Yes 0
84.011 Migrant Education_state Grant Program $65,999 - 0
84.365 English Language Acquisition State Grants $48,405 - 0
10.559 Summer Food Service Program for Children $46,474 Yes 0
10.666 Schools and Roads - Grants to Counties $27,837 - 0
84.010 Title I Grants to Local Educational Agencies $23,024 - 0
84.027 Special Education_grants to States $22,226 - 0
84.424 Student Support and Academic Enrichment Program $5,047 - 0
84.367 Improving Teacher Quality State Grants $4,825 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
UG8VBBUQP229 Gabriel Hansen Auditee
5415612943 Robert Tremper Auditor
No contacts on file

Notes to SEFA

Title: Note C Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Morrow County School District (District) under programs of the federalgovernment for the year ended June 30, 2022. The information is presented on the modifiedaccrual basis of accounting. The information in this Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, 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 notintended to and does not present the net position and changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District received and disbursed $99,742 market value of commodities under the SchoolNutrition Commodities CFDA# 10.555.
Title: Note D Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Morrow County School District (District) under programs of the federalgovernment for the year ended June 30, 2022. The information is presented on the modifiedaccrual basis of accounting. The information in this Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, 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 notintended to and does not present the net position and changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District received $30,600 in QSCB interest direct payment by the United States Treasury withan unknown CFDA number.
Title: Note E Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Morrow County School District (District) under programs of the federalgovernment for the year ended June 30, 2022. The information is presented on the modifiedaccrual basis of accounting. The information in this Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, 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 notintended to and does not present the net position and changes in net position of the District. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal forest fees passed through Morrow County, Oregon of $27,837 are included on the SEFAand are considered federal financial assistance, but are not subject to Uniform Guidance.

Finding Details

Finding 2022-003
Compliance and Material Weakness ? Special Tests 2022-003 Condition and criteria: The District should have control processes in place to ensure that allowable projects subject to prevailing wage requirements are performed under those requirements. There was one project that was subject to Federal prevailing wage requirements but did not get performed or documented for those requirements. Cause: The District did not have policies and procedures set up to monitor the prevailing wage requirements. Context and effect: The District has few capital projects funded by grant dollars, but there was one project for security improvements that fell under Federal prevailing wage guidelines. The proposal from the contractor said it included prevailing wage rates, but there was not an official contract found that would detail the prevailing wage requirements and we were unable to locate copies of certified payrolls indicating the District was not monitoring this requirement. The total cost of the project was $133,878 and included costs for the equipment and installation of the security enhancements. Auditor?s recommendation: We recommend the District update their policies and procedures to identify and monitor projects with Federal prevailing wage requirements. We also recommend contracts containing language applicable to Federal programs be prepared for all large projects. Management response: The District will update its policy to request and require certification for payment of prevailing wage by contractors. The District will also require signed contracts for projects being funded by Federal programs.
Finding 2022-004
Significant Deficiency 2022-004 Condition and criteria: The District should have control processes in place to ensure that monitoring procedures are in place for large contracts. The District contracted work for the engineering and design of HVAC improvements. For 2 of 3 invoices, payments were made from summary invoices rather than from application and certification of payment. We also did not locate a specific contract for the project, just a proposal. When the application and certification of payments were received, there were errors and changes requiring final reconciliation and accruals. Cause: There were changes in personnel at the District during the year and the ESSER grant is fairly new to the District. In addition, the invoices from the contractor did not initially contain all of the required information. Context and effect: We reviewed 100% of the invoices for the project and $38,324 was accrued as a year end liability and additional expense when the final contractor billing was received. This affected both grant revenue and expenses and led to adjustments on the Schedule of Expenditures of Federal Awards (SEFA). Auditor?s recommendation: We recommend enhanced monitoring procedures for large contracts and that application and certification for payment be reviewed and approved by an official with knowledge of the project and status before payment is issued. We also recommend contracts containing language applicable to Federal programs be prepared for all large projects. Management response: To ensure enhanced monitoring of large projects the District has assigned the Business Manager to approve payment on large projects. The Business Manager regularly meets with the maintenance coordinator and the Superintendent to discuss the progress and payment of large contracts. The District will also require signed contracts for projects being funded by Federal programs.
Finding 2022-003
Compliance and Material Weakness ? Special Tests 2022-003 Condition and criteria: The District should have control processes in place to ensure that allowable projects subject to prevailing wage requirements are performed under those requirements. There was one project that was subject to Federal prevailing wage requirements but did not get performed or documented for those requirements. Cause: The District did not have policies and procedures set up to monitor the prevailing wage requirements. Context and effect: The District has few capital projects funded by grant dollars, but there was one project for security improvements that fell under Federal prevailing wage guidelines. The proposal from the contractor said it included prevailing wage rates, but there was not an official contract found that would detail the prevailing wage requirements and we were unable to locate copies of certified payrolls indicating the District was not monitoring this requirement. The total cost of the project was $133,878 and included costs for the equipment and installation of the security enhancements. Auditor?s recommendation: We recommend the District update their policies and procedures to identify and monitor projects with Federal prevailing wage requirements. We also recommend contracts containing language applicable to Federal programs be prepared for all large projects. Management response: The District will update its policy to request and require certification for payment of prevailing wage by contractors. The District will also require signed contracts for projects being funded by Federal programs.
Finding 2022-004
Significant Deficiency 2022-004 Condition and criteria: The District should have control processes in place to ensure that monitoring procedures are in place for large contracts. The District contracted work for the engineering and design of HVAC improvements. For 2 of 3 invoices, payments were made from summary invoices rather than from application and certification of payment. We also did not locate a specific contract for the project, just a proposal. When the application and certification of payments were received, there were errors and changes requiring final reconciliation and accruals. Cause: There were changes in personnel at the District during the year and the ESSER grant is fairly new to the District. In addition, the invoices from the contractor did not initially contain all of the required information. Context and effect: We reviewed 100% of the invoices for the project and $38,324 was accrued as a year end liability and additional expense when the final contractor billing was received. This affected both grant revenue and expenses and led to adjustments on the Schedule of Expenditures of Federal Awards (SEFA). Auditor?s recommendation: We recommend enhanced monitoring procedures for large contracts and that application and certification for payment be reviewed and approved by an official with knowledge of the project and status before payment is issued. We also recommend contracts containing language applicable to Federal programs be prepared for all large projects. Management response: To ensure enhanced monitoring of large projects the District has assigned the Business Manager to approve payment on large projects. The Business Manager regularly meets with the maintenance coordinator and the Superintendent to discuss the progress and payment of large contracts. The District will also require signed contracts for projects being funded by Federal programs.