FAC Explorer

Audit 5769

FY End
2023-06-30
Total Expended
$44.28M
Findings
2
Programs
22
Organization: St Johns County School District (FL)
Year: 2023 Accepted: 2023-12-07
Auditor: Auditor General

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3683 2023-002 Significant Deficiency - N
580125 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $7.83M Yes 0
84.010 Title I Grants to Local Educational Agencies $4.39M - 0
84.027 Special Education_grants to States $1.82M - 0
84.063 Federal Pell Grant Program $1.27M - 0
10.553 School Breakfast Program $1.06M Yes 0
84.367 Supporting Effective Instruction State Grants $728,079 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $537,753 - 0
84.048 Career and Technical Education -- Basic Grants to States $533,170 - 0
84.002 Adult Education - Basic Grants to States $393,026 - 0
12.U03 Navy Reserve Officers Training Corps $299,449 - 0
17.259 Wia Youth Activities $283,096 - 0
93.600 Head Start $184,353 - 0
84.424 Student Support and Academic Enrichment Program $179,339 - 0
84.173 Special Education_preschool Grants $137,193 - 0
10.559 Summer Food Service Program for Children $98,143 Yes 0
12.U01 Army Junior Reserve Officers Training Corps $94,259 - 0
84.425 Education Stabilization Fund $88,807 Yes 0
12.U02 Air Force Reserve Officers Training Corps $71,796 - 0
94.002 Retired and Senior Volunteer Program $71,028 - 0
84.365 English Language Acquisition State Grants $70,559 - 0
84.041 Impact Aid $61,892 - 0
84.196 Education for Homeless Children and Youth $60,999 - 0

Contacts

Name Title Type
H13LBHBADR31 Dawn Posey Auditee
9045477624 Edward Waller, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal award activity of the St. Johns County School Board under programs of the Federal Government for the fiscal year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of the 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: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 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.
Title: INDIRECT COST RATE Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 The District has not elected to use the 10 percent de minimis cost rate allowed under the Uniform Guidance.
Title: NONCASH ASSISTANCE: NATIONAL SCHOOL LUNCH PROGRAM Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 Includes $1,013,057 of donated food received during the fiscal year. Donated foods are valued at fair value as determined at the time of donation.
Title: FEDERAL PELL GRANT PROGRAM Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 The District has reported $1,265,931 of which $31,633 was incurred prior to fiscal year ended June 30, 2023.
Title: HEAD START Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 Expenditures include $1,549,820 for grant number/program year 04CH010529-05-00/23.
Title: DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) Accounting Policies: See Note 1 and 2 De Minimis Rate Used: N Rate Explanation: See Note 3 Following a Presidential declaration of a major disaster or emergency, Department of Homeland Security's Federal Emergency Management Agency (FEMA) awards grants to assist affected entities with the response to, and recovery from, such disasters. In fiscal year 2023, FEMA approved $537,753 of eligible expenditures for Hurricane Matthew, an event that occurred in October 2016. The $537,753 of eligible expenditures incurred prior to fiscal year ended June 30, 2023.

Finding Details

Finding 2023-002
Finding - District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000, resulting in questioned costs totaling $216,031. Criteria - The ES 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 ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). 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 public buildings or public works. Condition - During the 2022-23 fiscal year, the District expended $216,031 from the ES Fund for projects related to two construction contracts totaling $412,189 for heating, ventilation, and air-conditioning (HVAC) renovation projects. While each of the two contracts included a general requirement to comply with all Davis-Bacon Act provisions, the contracts did not explicitly require, and the contractors did not submit, weekly certified payrolls to the District demonstrating prevailing wage rates were paid. Cause - The contracts did not specifically require contractors to submit to the District weekly certified payrolls and District personnel overlooked this requirement. Effect - Absent specific contract clauses and weekly certified payrolls, there is an increased risk that 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 contractors demonstrating that the prevailing wage rates were paid for the construction contracts. Consequently, the $216,031 expended by the District are questioned costs. Recommendation - The District should enhance procedures to ensure compliance with all Davis-Bacon Act requirements. Such enhancements should ensure that applicable Federally funded facility contracts specifically require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. In addition, the District should document to the FDOE the allowability of the questioned costs or contact the FDOE regarding necessary corrective action. District Response - The District's procedures will be enhanced to ensure compliance with the Davis-Bacon Act prevailing wage requirements by specifically updating Federally-funded construction contracts with the requirement for submittal of weekly certified payroll from the vendor to appropriate District personnel for review.
Finding 2023-002
Finding - District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000, resulting in questioned costs totaling $216,031. Criteria - The ES 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 ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). 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 public buildings or public works. Condition - During the 2022-23 fiscal year, the District expended $216,031 from the ES Fund for projects related to two construction contracts totaling $412,189 for heating, ventilation, and air-conditioning (HVAC) renovation projects. While each of the two contracts included a general requirement to comply with all Davis-Bacon Act provisions, the contracts did not explicitly require, and the contractors did not submit, weekly certified payrolls to the District demonstrating prevailing wage rates were paid. Cause - The contracts did not specifically require contractors to submit to the District weekly certified payrolls and District personnel overlooked this requirement. Effect - Absent specific contract clauses and weekly certified payrolls, there is an increased risk that 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 contractors demonstrating that the prevailing wage rates were paid for the construction contracts. Consequently, the $216,031 expended by the District are questioned costs. Recommendation - The District should enhance procedures to ensure compliance with all Davis-Bacon Act requirements. Such enhancements should ensure that applicable Federally funded facility contracts specifically require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. In addition, the District should document to the FDOE the allowability of the questioned costs or contact the FDOE regarding necessary corrective action. District Response - The District's procedures will be enhanced to ensure compliance with the Davis-Bacon Act prevailing wage requirements by specifically updating Federally-funded construction contracts with the requirement for submittal of weekly certified payroll from the vendor to appropriate District personnel for review.