FAC Explorer

Finding 517230 (2024-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2024-12-31
Audit: 335212
Organization: Believe Schools, Inc. and Affiliate (IN)
Auditor: Donovan PC

AI Summary

  • Core Issue: The School failed to include and retain a formal contract with Davis-Bacon Act provisions for a contractor hired for renovations.
  • Impacted Requirements: Non-compliance with federal regulations requiring documentation of prevailing wage determinations and contractor wage payments.
  • Recommended Follow-Up: Establish internal controls to ensure all contracts are properly documented and maintained for compliance purposes.

Finding Text

FINDING 2024-002 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425 Criteria 2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, part (D), states: When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. Condition The School entered into an agreement with a contractor for building renovations paid with funds from the Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the provisions of the Davis-Bacon Act. Cause The School did not maintain the contract for the renovation services. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure formal contracts are put in place and retained. Views of Responsible Officials The School’s Corrective Action Plan is included on page 25.

Corrective Action Plan

To Whom it may concern: This document serves as the response to the 2023-2024 Financial Audit on behalf of BELIEVE Schools, Inc. We’ve identified and addressed the comments that were included in the Uniform Guidance Major Program Findings. Please review the corrective action items in response to the Audit Results and Comments: Education Stabilization Fund (ESSER Grant): The school was unable to provide construction contracts to allow auditors to verify that the required Davis-Bacon Act wording was included. ● The Principal, Angel Jackson-Anderson, and Dean of Operations, Kayla Marshall, will ensure that the proper contracts are received and filed for all services conducted under ESSER grants. Child Nutrition: The school did not maintain tally sheets to support the number of meals served. ● The Dean of Operations, Kayla Marshall, will ensure that the proper physical files (tally sheets) are maintained and filed monthly, both in digital and paper form. The principal will review these files monthly to ensure documents are not lost or misplaced. If you have any questions, concerns, or comments, please feel free to contact me the school principal, Angel Jackson-Anderson, Aanderson@believeschools.org. Many thanks, Angel Jackson-Anderson Principal, BELIEVE Circle City High School Kayla Marshall Dean of Operations, BELIEVE Circle City High School www.believeschools.org @believeschoolsindy admin@believeschools.org 317-296-1954 Angel Jackson-Anderson 11/07/2024 02:25PM UTC

Categories

Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 517228 2024-001
    Significant Deficiency
  • 517229 2024-001
    Significant Deficiency
  • 517231 2024-002
    Significant Deficiency
  • 517232 2024-002
    Significant Deficiency
  • 1093670 2024-001
    Significant Deficiency
  • 1093671 2024-001
    Significant Deficiency
  • 1093672 2024-002
    Significant Deficiency
  • 1093673 2024-002
    Significant Deficiency
  • 1093674 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $165,731
84.282 Charter Schools $137,399
84.425 Education Stabilization Fund $77,788
84.010 Title I Grants to Local Educational Agencies $70,496
10.553 School Breakfast Program $33,732
84.424 Student Support and Academic Enrichment Program $11,750
84.367 Improving Teacher Quality State Grants $3,000
84.027 Special Education_grants to States $1,418
84.365 English Language Acquisition State Grants $1,295