FAC Explorer

Audit 9627

FY End
2023-06-30
Total Expended
$2.85M
Findings
6
Programs
13
Organization: Independent School District No. 593 (MN)
Year: 2023 Accepted: 2024-01-04
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7460 2023-004 Material Weakness - N
7461 2023-004 Material Weakness - N
7462 2023-004 Material Weakness - N
583902 2023-004 Material Weakness - N
583903 2023-004 Material Weakness - N
583904 2023-004 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $361,042 - 0
10.553 School Breakfast Program $150,935 - 0
32.009 Emergency Connectivity Fund Program $44,189 - 0
84.367 Improving Teacher Quality State Grants $41,626 - 0
10.555 National School Lunch Program $39,152 - 0
10.559 Summer Food Service Program for Children $17,971 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,350 - 0
84.425 Education Stabilization Fund $9,167 Yes 1
84.181 Special Education-Grants for Infants and Families $8,011 - 0
10.582 Fresh Fruit and Vegetable Program $6,075 - 0
84.027 Special Education_grants to States $5,925 - 0
84.173 Special Education_preschool Grants $4,985 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
MF7FH7K1RX65 Blake Stoltman Auditee
2182815313 Tracee Bruggeman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the 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 elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of Independent School District No. 593 under programs of the federal government for the year ended June 30, 2023. 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 Independent School District No. 593, it is not intended to be and does not present the financial position or changes in net position of Independent School District No. 593.
Title: Commodity Distribution Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the 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 elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.
Title: Pass-through Entities Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the 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 elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. All pass-through entities listed on the previous page use the same AL numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers.
Title: Subrecipients Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (the Schedule) are reported on the 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 elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended June 30, 2023, the District did not pass any federal money to subrecipients.

Finding Details

Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.
Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.
Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.
Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.
Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.
Finding 2023-004
Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.