FAC Explorer

Audit 50734

FY End
2022-06-30
Total Expended
$4.80M
Findings
2
Programs
15
Organization: Gulf County District School Board (FL)
Year: 2022 Accepted: 2023-01-11
Auditor: Auditor General

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46811 2022-001 Material Weakness - F
623253 2022-001 Material Weakness - F

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $550,373 - 0
10.555 National School Lunch Program $502,253 - 0
84.425 Education Stabilization Fund $480,048 Yes 0
84.027 Special Education_grants to States $445,922 - 0
32.009 Emergency Connectivity Fund Program $185,937 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $165,252 - 0
84.287 Twenty-First Century Community Learning Centers $155,788 - 0
10.553 School Breakfast Program $133,822 - 0
84.048 Career and Technical Education -- Basic Grants to States $78,253 - 0
84.367 Supporting Effective Instruction State Grants $77,516 - 0
12.U01 Navy Junior Reserve Officers Training Corps $58,722 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $44,102 - 0
84.424 Student Support and Academic Enrichment Program $39,852 - 0
84.173 Special Education_preschool Grants $20,998 - 0
84.358 Rural Education $20,251 - 0

Contacts

Name Title Type
TX6KVD8R44N5 Evan Clark Auditee
8502298256 Edward Waller, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal award activity of the Gulf County District School Board under programs of the Federal Government for the fiscal year ended June 30, 2022. 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). 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 or changes in net position of the District.
Title: Noncash Assistance: National School Lunch Program Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. Includes $30,059.04 of donated food received during the fiscal year. Donated foods are valued at fair value as determined at the time of donation.
Title: Noncash Assistance: Emergency Connectivity Fund Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. Includes $185,937.50 of equipment and services received at fair value during the fiscal year.
Title: Disaster Grants - Public Assistance (Presidentially Declared Disaster) Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance. The District incurred $165,251.63 in expenditures for the Disaster Grants - Public Assistance (Presidentially Declared Disaster) grant in the 2020-21 fiscal year.

Finding Details

Finding 2022-001
Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000, resulting in Federal program questioned costs totaling $1,251,947. Criteria: The ESSER Fund provides Federal funds for school facility repairs and improvements to reduce the risk of virus transmission and exposure to environmental health hazards and to support student health needs. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and to ensure that contractors and subcontractors pay workers the prevailing wage rates established by the United States Department of Labor. The United States Department of Labor established ?prevailing wages? by geographic area and interprets the Davis Bacon Act to apply to construction, alteration, or repair of a public building or public work. Condition: During the 2019-20 fiscal year, the Board entered into a construction contract for heating, ventilation, and air-conditioning repairs and upgrades at all District schools and various administrative and support offices. As of June 2022, the District had expended ESSER funds totaling $1,251,947 on the project. We noted that the contract for the project did not contain clauses that required the contractors and subcontractors to comply with the Davis-Bacon Act provisions. In addition, in response to our inquiry, District personnel indicated that they had not performed direct comparisons of wage rates paid by the contractor and subcontractors for the project with the prevailing wages established by the United States Department of Labor. Cause: District personnel were not aware that the Davis-Bacon Act applied to the project. Effect: Without an appropriate understanding of the Davis-Bacon Act and when to apply the Act requirements, there is an increased risk that that construction contractors and subcontractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Although we requested, the District did not provide the certified payrolls from the contractor demonstrating that the prevailing wage rates were paid for these projects. Consequently, the District incurred questioned costs totaling $1,251,947. Recommendation: The District should establish procedures to comply with all provisions of the Davis-Bacon Act. Such procedures should include appropriate training for staff to understand the Davis-Bacon Act and when the Act requirements should be applied. In addition, the procedures should ensure that Federally funded facility contracts include the required prevailing wage rate clauses and that wage rates paid by the contractor and subcontractors for such projects are directly compared to and determined to be consistent with the prevailing wages established for the geographic area by the United States Department of Labor. Also, the District should document to the Florida Department of Education (FDOE) the allowability of the questioned costs of $1,251,947 or contact the FDOE regarding necessary corrective action. District Response: The District will enhance its procedures to ensure compliance with the Davis Bacon Act.
Finding 2022-001
Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000, resulting in Federal program questioned costs totaling $1,251,947. Criteria: The ESSER Fund provides Federal funds for school facility repairs and improvements to reduce the risk of virus transmission and exposure to environmental health hazards and to support student health needs. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and to ensure that contractors and subcontractors pay workers the prevailing wage rates established by the United States Department of Labor. The United States Department of Labor established ?prevailing wages? by geographic area and interprets the Davis Bacon Act to apply to construction, alteration, or repair of a public building or public work. Condition: During the 2019-20 fiscal year, the Board entered into a construction contract for heating, ventilation, and air-conditioning repairs and upgrades at all District schools and various administrative and support offices. As of June 2022, the District had expended ESSER funds totaling $1,251,947 on the project. We noted that the contract for the project did not contain clauses that required the contractors and subcontractors to comply with the Davis-Bacon Act provisions. In addition, in response to our inquiry, District personnel indicated that they had not performed direct comparisons of wage rates paid by the contractor and subcontractors for the project with the prevailing wages established by the United States Department of Labor. Cause: District personnel were not aware that the Davis-Bacon Act applied to the project. Effect: Without an appropriate understanding of the Davis-Bacon Act and when to apply the Act requirements, there is an increased risk that that construction contractors and subcontractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Although we requested, the District did not provide the certified payrolls from the contractor demonstrating that the prevailing wage rates were paid for these projects. Consequently, the District incurred questioned costs totaling $1,251,947. Recommendation: The District should establish procedures to comply with all provisions of the Davis-Bacon Act. Such procedures should include appropriate training for staff to understand the Davis-Bacon Act and when the Act requirements should be applied. In addition, the procedures should ensure that Federally funded facility contracts include the required prevailing wage rate clauses and that wage rates paid by the contractor and subcontractors for such projects are directly compared to and determined to be consistent with the prevailing wages established for the geographic area by the United States Department of Labor. Also, the District should document to the Florida Department of Education (FDOE) the allowability of the questioned costs of $1,251,947 or contact the FDOE regarding necessary corrective action. District Response: The District will enhance its procedures to ensure compliance with the Davis Bacon Act.