FAC Explorer

Audit 55538

FY End
2022-06-30
Total Expended
$7.15M
Findings
4
Programs
13
Organization: Aberdeen School District 6-1 (SD)
Year: 2022 Accepted: 2023-03-13
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59933 2022-002 Significant Deficiency - N
59934 2022-002 Significant Deficiency - N
636375 2022-002 Significant Deficiency - N
636376 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $2.47M Yes 0
84.027 Special Education_grants to States $1.19M - 0
84.010 Title I Grants to Local Educational Agencies $957,968 - 0
84.425 Covid-19 - Education Stabilization Fund $672,976 Yes 1
10.553 School Breakfast Program $346,365 Yes 0
84.367 Improving Teacher Quality State Grants $253,920 - 0
84.048 Career and Technical Education -- Basic Grants to States $66,892 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $48,107 - 0
84.060 Indian Education_grants to Local Educational Agencies $47,000 - 0
84.173 Special Education_preschool Grants $35,780 - 0
45.310 Grants to States $34,584 - 0
15.130 Indian Education_assistance to Schools $11,350 - 0
84.181 Special Education-Grants for Infants and Families $2,201 - 0

Contacts

Name Title Type
ZT1DJD1GKKE5 Tom Janish Auditee
6057257100 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Note 2 Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 4 Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. Note 1 Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Aberdeen School District 6-1 (the School District) under programs of the federal government for the year ended June 30, 2022. The information 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 School District, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the School District.
Title: PASS-THROUGH ENTITY Accounting Policies: Note 2 Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 4 Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. Note 3 Pass-Through Entity The pass-through entities have not provided identifying numbers; therefore, they are not included in this schedule.
Title: FOOD DONATION Accounting Policies: Note 2 Summary of Significant Accounting Policies Expenditures reported in 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 4 Indirect Cost Rate The School District has not elected to use the 10% de minimus cost rate. Note 5 Food Donation Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. At June 30, 2022, the School District had food commodities totaling $0 in inventory.

Finding Details

Finding 2022-002
2022-002 Department of Education Federal Financial Assistance Listing 84.425D, 84.425U ? COVID-19 Elementary and Secondary School Emergency Relief Fund Special Tests and Provisions ? Wage Rate Requirement Significant Deficiency in Internal Controls over Compliance Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction, sets forth the criteria which requires all laborers and mechanics employed by contractors or subcontractors who work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Condition: 1 of 3 projects selected for testing did not have the wage rate requirements included in the contract and the School District did not obtain the weekly payroll certifications as required. For the two other projects that were tested, no errors were noted. Cause: The School District misunderstood this project was subject to the requirements based on the number on contractors included on this project being one. Effect: No certified payrolls were received specific to this project for review to determine the prevailing wages were properly paid on this contract. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 6 payrolls of the 27 total payrolls on the two other contracts were tested. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a review of all contracts involving federal grants to ensure the contracts include the wage rate requirements and payrolls be obtained for review to ensure that prevailing wage rates are being paid on federally funded projects. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Education Federal Financial Assistance Listing 84.425D, 84.425U ? COVID-19 Elementary and Secondary School Emergency Relief Fund Special Tests and Provisions ? Wage Rate Requirement Significant Deficiency in Internal Controls over Compliance Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction, sets forth the criteria which requires all laborers and mechanics employed by contractors or subcontractors who work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Condition: 1 of 3 projects selected for testing did not have the wage rate requirements included in the contract and the School District did not obtain the weekly payroll certifications as required. For the two other projects that were tested, no errors were noted. Cause: The School District misunderstood this project was subject to the requirements based on the number on contractors included on this project being one. Effect: No certified payrolls were received specific to this project for review to determine the prevailing wages were properly paid on this contract. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 6 payrolls of the 27 total payrolls on the two other contracts were tested. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a review of all contracts involving federal grants to ensure the contracts include the wage rate requirements and payrolls be obtained for review to ensure that prevailing wage rates are being paid on federally funded projects. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Education Federal Financial Assistance Listing 84.425D, 84.425U ? COVID-19 Elementary and Secondary School Emergency Relief Fund Special Tests and Provisions ? Wage Rate Requirement Significant Deficiency in Internal Controls over Compliance Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction, sets forth the criteria which requires all laborers and mechanics employed by contractors or subcontractors who work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Condition: 1 of 3 projects selected for testing did not have the wage rate requirements included in the contract and the School District did not obtain the weekly payroll certifications as required. For the two other projects that were tested, no errors were noted. Cause: The School District misunderstood this project was subject to the requirements based on the number on contractors included on this project being one. Effect: No certified payrolls were received specific to this project for review to determine the prevailing wages were properly paid on this contract. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 6 payrolls of the 27 total payrolls on the two other contracts were tested. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a review of all contracts involving federal grants to ensure the contracts include the wage rate requirements and payrolls be obtained for review to ensure that prevailing wage rates are being paid on federally funded projects. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Education Federal Financial Assistance Listing 84.425D, 84.425U ? COVID-19 Elementary and Secondary School Emergency Relief Fund Special Tests and Provisions ? Wage Rate Requirement Significant Deficiency in Internal Controls over Compliance Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction, sets forth the criteria which requires all laborers and mechanics employed by contractors or subcontractors who work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Condition: 1 of 3 projects selected for testing did not have the wage rate requirements included in the contract and the School District did not obtain the weekly payroll certifications as required. For the two other projects that were tested, no errors were noted. Cause: The School District misunderstood this project was subject to the requirements based on the number on contractors included on this project being one. Effect: No certified payrolls were received specific to this project for review to determine the prevailing wages were properly paid on this contract. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 6 payrolls of the 27 total payrolls on the two other contracts were tested. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a review of all contracts involving federal grants to ensure the contracts include the wage rate requirements and payrolls be obtained for review to ensure that prevailing wage rates are being paid on federally funded projects. Views of Responsible Officials: Management agrees with the finding.