FAC Explorer

Audit 56925

FY End
2022-06-30
Total Expended
$5.03M
Findings
6
Programs
13
Organization: Sauk Prairie School District (WI)
Year: 2022 Accepted: 2023-03-14
Auditor: Johnson Block and Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61463 2022-002 Significant Deficiency - N
61464 2022-002 Significant Deficiency - N
61465 2022-001 Material Weakness - L
637905 2022-002 Significant Deficiency - N
637906 2022-002 Significant Deficiency - N
637907 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $734,197 - 0
84.425 Education Stabilization Fund $651,959 Yes 1
84.010 Title I Grants to Local Educational Agencies $312,898 - 0
93.778 Medical Assistance Program $300,525 Yes 0
10.553 School Breakfast Program $291,048 - 1
10.555 National School Lunch Program $123,761 - 0
84.287 Twenty-First Century Community Learning Centers $114,251 - 0
84.367 Improving Teacher Quality State Grants $65,971 - 0
84.173 Special Education_preschool Grants $19,168 - 0
84.424 Student Support and Academic Enrichment Program $14,086 - 0
84.365 English Language Acquisition State Grants $13,678 - 0
84.048 Career and Technical Education -- Basic Grants to States $13,532 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
LY2XG8SYTK37 Kathy Stoltz Auditee
6086345987 Brent Nelson Auditor
No contacts on file

Notes to SEFA

Title: Special Education and School Age Parents Program Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Sauk Prairie School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 2021-2022 eligible costs under the State Special Education Program are $4,662,710. The 2022-2023 aid estimate is $1,258,932.
Title: Subrecipients Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Sauk Prairie School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not pass any amounts through to subrecipients
Title: Food Distribution Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Sauk Prairie School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Medical Assistance Program Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Sauk Prairie School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures presented for the Medical Assistance Program School-Based Services represent only the federal funds received from the Wisconsin Department of Health Services. District records should be consulted to determine the total amount expended for this program.Medical Assistance Program School-Based Services, listed as a federal award, has audit procedures performed in accordance with the State of Wisconsin Department of Health Services.

Finding Details

Finding 2022-002
Finding #2022-002 ? Wage Rate Requirements Education Stabilization Fund ? ESSER II (#84.425D) and ESSER III (#84.425U) Federal Grantor ? U.S. Department of Education Pass-through Award Number ? 2022-565100-DPI-ESSERFII-163 and 2022-565100-DPI-ESSERFIII-165 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the projects totaled $996,123. (ESSER II - $554,294 and ESSER III $441,829). A prevailing wage clause was not included in the contracts as required. However, certified payrolls reports were received to ensure the contractors were paying prevailing wage rates. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement of the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that the wage requirement applied to these construction projects during the bid process. After they became aware and before construction began they requested certified payrolls during construction to verify prevailing wages were paid. Effect: Potential for a contractor to not pay prevailing wage rates if that language was not in the agreed upon contract. Context: The air handling construction project began in January of 2022 but was bid out the prior year before the District was aware of the prevailing wage requirement. After becoming aware of the requirement, the District verified the prevailing wage rate was being paid during construction of the project. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund during the bid and contract process of all projects. Response: The District became aware of wage rate requirements after finishing the bidding process for the project. Before construction began the prevailing wage rate was verified to be paid and was verified through certified payrolls by the District. Before bidding any future construction projects more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will continue to be received for any such contracts.
Finding 2022-002
Finding #2022-002 ? Wage Rate Requirements Education Stabilization Fund ? ESSER II (#84.425D) and ESSER III (#84.425U) Federal Grantor ? U.S. Department of Education Pass-through Award Number ? 2022-565100-DPI-ESSERFII-163 and 2022-565100-DPI-ESSERFIII-165 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the projects totaled $996,123. (ESSER II - $554,294 and ESSER III $441,829). A prevailing wage clause was not included in the contracts as required. However, certified payrolls reports were received to ensure the contractors were paying prevailing wage rates. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement of the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that the wage requirement applied to these construction projects during the bid process. After they became aware and before construction began they requested certified payrolls during construction to verify prevailing wages were paid. Effect: Potential for a contractor to not pay prevailing wage rates if that language was not in the agreed upon contract. Context: The air handling construction project began in January of 2022 but was bid out the prior year before the District was aware of the prevailing wage requirement. After becoming aware of the requirement, the District verified the prevailing wage rate was being paid during construction of the project. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund during the bid and contract process of all projects. Response: The District became aware of wage rate requirements after finishing the bidding process for the project. Before construction began the prevailing wage rate was verified to be paid and was verified through certified payrolls by the District. Before bidding any future construction projects more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will continue to be received for any such contracts.
Finding 2022-001
#Finding #2022-001 ? Overclaimed Breakfast Meals Served Child Nutrition Cluster ? Food Service Aid ? Breakfast (10.553) Condition: The May 2022 breakfast claim was originally made for 12,564 more meals served than actually occurred. This resulted in the District being reimbursed $32,729 too much. Criteria: Districts should track and claim actual meals served during each month to eligible students. Cause: The District erroneously entered the number of lunch meals in as breakfast meals when reporting the May 2022 breakfast meals. Effect: More breakfast meals were reimbursed than served in May 2022. This resulted in a $32,729 overpayment of federal aid. Context: When claiming meals for the month of May 2022, the District erroneously entered the incorrect number of meals for the breakfast claim. The error was identified by the District?s auditors in July 2022 during performance of the June 30, 2022 audit. After the auditors brought the matter to the attention of District management, the process immediately began to bring the matter to the Wisconsin Department of Public Instruction?s attention and to refund the overclaimed amount. Recommendation: Establish controls of review to ensure the correct number of breakfast meals are being reported each month. Response: The District will work to establish controls to ensure the correct number of meals are claimed each month.
Finding 2022-002
Finding #2022-002 ? Wage Rate Requirements Education Stabilization Fund ? ESSER II (#84.425D) and ESSER III (#84.425U) Federal Grantor ? U.S. Department of Education Pass-through Award Number ? 2022-565100-DPI-ESSERFII-163 and 2022-565100-DPI-ESSERFIII-165 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the projects totaled $996,123. (ESSER II - $554,294 and ESSER III $441,829). A prevailing wage clause was not included in the contracts as required. However, certified payrolls reports were received to ensure the contractors were paying prevailing wage rates. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement of the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that the wage requirement applied to these construction projects during the bid process. After they became aware and before construction began they requested certified payrolls during construction to verify prevailing wages were paid. Effect: Potential for a contractor to not pay prevailing wage rates if that language was not in the agreed upon contract. Context: The air handling construction project began in January of 2022 but was bid out the prior year before the District was aware of the prevailing wage requirement. After becoming aware of the requirement, the District verified the prevailing wage rate was being paid during construction of the project. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund during the bid and contract process of all projects. Response: The District became aware of wage rate requirements after finishing the bidding process for the project. Before construction began the prevailing wage rate was verified to be paid and was verified through certified payrolls by the District. Before bidding any future construction projects more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will continue to be received for any such contracts.
Finding 2022-002
Finding #2022-002 ? Wage Rate Requirements Education Stabilization Fund ? ESSER II (#84.425D) and ESSER III (#84.425U) Federal Grantor ? U.S. Department of Education Pass-through Award Number ? 2022-565100-DPI-ESSERFII-163 and 2022-565100-DPI-ESSERFIII-165 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the projects totaled $996,123. (ESSER II - $554,294 and ESSER III $441,829). A prevailing wage clause was not included in the contracts as required. However, certified payrolls reports were received to ensure the contractors were paying prevailing wage rates. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement of the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that the wage requirement applied to these construction projects during the bid process. After they became aware and before construction began they requested certified payrolls during construction to verify prevailing wages were paid. Effect: Potential for a contractor to not pay prevailing wage rates if that language was not in the agreed upon contract. Context: The air handling construction project began in January of 2022 but was bid out the prior year before the District was aware of the prevailing wage requirement. After becoming aware of the requirement, the District verified the prevailing wage rate was being paid during construction of the project. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund during the bid and contract process of all projects. Response: The District became aware of wage rate requirements after finishing the bidding process for the project. Before construction began the prevailing wage rate was verified to be paid and was verified through certified payrolls by the District. Before bidding any future construction projects more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will continue to be received for any such contracts.
Finding 2022-001
#Finding #2022-001 ? Overclaimed Breakfast Meals Served Child Nutrition Cluster ? Food Service Aid ? Breakfast (10.553) Condition: The May 2022 breakfast claim was originally made for 12,564 more meals served than actually occurred. This resulted in the District being reimbursed $32,729 too much. Criteria: Districts should track and claim actual meals served during each month to eligible students. Cause: The District erroneously entered the number of lunch meals in as breakfast meals when reporting the May 2022 breakfast meals. Effect: More breakfast meals were reimbursed than served in May 2022. This resulted in a $32,729 overpayment of federal aid. Context: When claiming meals for the month of May 2022, the District erroneously entered the incorrect number of meals for the breakfast claim. The error was identified by the District?s auditors in July 2022 during performance of the June 30, 2022 audit. After the auditors brought the matter to the attention of District management, the process immediately began to bring the matter to the Wisconsin Department of Public Instruction?s attention and to refund the overclaimed amount. Recommendation: Establish controls of review to ensure the correct number of breakfast meals are being reported each month. Response: The District will work to establish controls to ensure the correct number of meals are claimed each month.