Audit 50489

FY End
2022-06-30
Total Expended
$5.05M
Findings
4
Programs
11
Organization: Medina City School District (OH)
Year: 2022 Accepted: 2023-08-03

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59939 2022-002 Material Weakness - N
59940 2022-002 Material Weakness - N
636381 2022-002 Material Weakness - N
636382 2022-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $592,965 Yes 1
84.010 Title I Grants to Local Educational Agencies $548,224 - 0
10.553 School Breakfast Program $471,123 - 0
10.555 National School Lunch Program $180,123 - 0
84.367 Improving Teacher Quality State Grants $174,549 - 0
84.173 Special Education_preschool Grants $42,672 Yes 0
84.424 Student Support and Academic Enrichment Program $40,716 - 0
84.365 English Language Acquisition State Grants $15,267 - 0
10.559 Summer Food Service Program for Children $11,847 - 0
84.027 Special Education_grants to States $4,466 Yes 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
MJ8JRXS64UK3 David Chambers Auditee
3306363052 Lindsey Young Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Receipts and 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Federal Awards Receipts and Expenditures Schedule (the Schedule) includes the federal award activity of Medina City School District, Medina County, Ohio (the District) 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.
Title: CHILD NUTRITION CLUSTER Accounting Policies: Receipts and 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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: FOOD DONATION PROGRAM Accounting Policies: Receipts and 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. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated food commodities to the respective program that benefitted from the use of those donated food commodities.

Finding Details

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 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. Lack of proper internal controls over Federal grants management led to the following: ? The District expended $46,993 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation heating, ventilation, and air conditioning (HVAC) systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. Additionally, the District did not obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $470,000 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. However, the District did obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $4,139 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work without obtaining weekly certified payroll reports from the contractor to verify prevailing wages were paid. However, the District?s contracts with these contractors for these projects included a provision to ensure the contractors complied with Federal wage rate requirements. Failure to have effective controls in place over wage-rate requirements may result in the District and its contractors or subcontractors failing to pay prevailing wages when required by Federal law and could result in reduction of future Federal funding or other sanctions imposed by Federal grantors. When required by Federal grant legislation, the District should ensure contracts for prime construction in excess of $2,000 paid with Federal grant monies contain provisions that require the contractor to comply with the wage rate requirements and ensure certified payroll reports are provided weekly by the contractor. The District should review the certified payroll reports and report all suspected or reported violations to the Federal awarding agency.
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 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. Lack of proper internal controls over Federal grants management led to the following: ? The District expended $46,993 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation heating, ventilation, and air conditioning (HVAC) systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. Additionally, the District did not obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $470,000 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. However, the District did obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $4,139 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work without obtaining weekly certified payroll reports from the contractor to verify prevailing wages were paid. However, the District?s contracts with these contractors for these projects included a provision to ensure the contractors complied with Federal wage rate requirements. Failure to have effective controls in place over wage-rate requirements may result in the District and its contractors or subcontractors failing to pay prevailing wages when required by Federal law and could result in reduction of future Federal funding or other sanctions imposed by Federal grantors. When required by Federal grant legislation, the District should ensure contracts for prime construction in excess of $2,000 paid with Federal grant monies contain provisions that require the contractor to comply with the wage rate requirements and ensure certified payroll reports are provided weekly by the contractor. The District should review the certified payroll reports and report all suspected or reported violations to the Federal awarding agency.
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 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. Lack of proper internal controls over Federal grants management led to the following: ? The District expended $46,993 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation heating, ventilation, and air conditioning (HVAC) systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. Additionally, the District did not obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $470,000 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. However, the District did obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $4,139 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work without obtaining weekly certified payroll reports from the contractor to verify prevailing wages were paid. However, the District?s contracts with these contractors for these projects included a provision to ensure the contractors complied with Federal wage rate requirements. Failure to have effective controls in place over wage-rate requirements may result in the District and its contractors or subcontractors failing to pay prevailing wages when required by Federal law and could result in reduction of future Federal funding or other sanctions imposed by Federal grantors. When required by Federal grant legislation, the District should ensure contracts for prime construction in excess of $2,000 paid with Federal grant monies contain provisions that require the contractor to comply with the wage rate requirements and ensure certified payroll reports are provided weekly by the contractor. The District should review the certified payroll reports and report all suspected or reported violations to the Federal awarding agency.
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 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. Lack of proper internal controls over Federal grants management led to the following: ? The District expended $46,993 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation heating, ventilation, and air conditioning (HVAC) systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. Additionally, the District did not obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $470,000 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work. The District?s contracts with the contractors for these projects did not include a provision to ensure the contractors complied with Federal wage rate requirements. However, the District did obtain weekly certified payroll reports from the contractor to verify payment of prevailing wages. ? The District expended $4,139 of its Education Stabilization Fund - Elementary and Secondary School Emergency Relief (ESSER II) Fund, AL #84.425D, federal grant funds for the replacement/renovation of HVAC systems and related electrical work without obtaining weekly certified payroll reports from the contractor to verify prevailing wages were paid. However, the District?s contracts with these contractors for these projects included a provision to ensure the contractors complied with Federal wage rate requirements. Failure to have effective controls in place over wage-rate requirements may result in the District and its contractors or subcontractors failing to pay prevailing wages when required by Federal law and could result in reduction of future Federal funding or other sanctions imposed by Federal grantors. When required by Federal grant legislation, the District should ensure contracts for prime construction in excess of $2,000 paid with Federal grant monies contain provisions that require the contractor to comply with the wage rate requirements and ensure certified payroll reports are provided weekly by the contractor. The District should review the certified payroll reports and report all suspected or reported violations to the Federal awarding agency.