CARROLLTON EXEMPTED VILLAGE SCHOOL DISTRICTLocal Government

Finding Number: 2025-004 Federal Program: Title I Federal Award Identification Number and Year: 2025 Assistance Listing Number (ALN): 84.010A Federal Awarding Agency: U.S. Department of Education Pass-through Entity: Ohio Department of Education and Workforce Compliance Requirements: Allowable Costs/Allowable Activities Repeat Finding: No Significant Deficiency/ Noncompliance – Time & Effort Criteria: 2 CFR § 3474.1 gives regulatory effect to the Office of Management Budget guidance in 2 CFR § 200 for the Department of Education. 2 CFR § 200 Subpart E which states, in part, costs must be adequately documented in order to be considered allowable. 2 CFR § 200.430(g)(1)(i) states, in part, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The Ohio Department of Education and Workforce’s Grants Manual states, in part, semi-annual certifications are allowed when an employee’s compensation is funded by only one federal grant and works solely on a single cost objective. An employee funded by a federal grant and the general fund would fall under this category. Finding Number: 2025-004 (Continued) Significant Deficiency/ Noncompliance – Time & Effort (Continued) Criteria (continued): The Ohio Department of Education and Workforce’s Grants Management Guidance 2014-002 states, in part, employees who meet [the criteria to use semi-annual certifications] are not required to maintain time and-effort records if their job description clearly shows the employee is assigned 100% to the program or single cost objective. Each employee must certify in writing, at least semi-annually, that he/she worked solely on the program or single cost objective for the period covered by the certification. The certification is signed by the employee or by the supervisor having first-hand knowledge. Charges to the grant must be supported by these semi-annual certifications. The semi-annual certification is executed after the work has been completed, and not before. Condition: We performed a test of controls and compliance over allowable costs/cost principles for payroll expenditures charged during fiscal year 2025. Semi-annual certifications were not completed for one semiannual period for two employees. Cause: Error when completing the semi-annual certifications. Effect: Although we did not identify any unallowable costs, the lack of controls over the time and effort documentation subjects the School District to an increased risk of unallowable costs being charged to the federal programs. Recommendation: We recommend the School District review the individuals paid out of the federal funds to ensure the amounts are allowable. After this review, the School District should ensure the proper time and effort documentation exists in accordance with the requirements above. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.

Finding Number: 2022-001 Federal Program: Education Stabilization Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425D, 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Special Tests and Provisions ? Wage Rate Requirements Pass-through Entity: Ohio Department of Education Repeat Finding: No Material Weakness and Material Noncompliance ? Wage Rate Requirements Criteria: 2 CFR ? 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 CFR ? 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable: (D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). 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. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland ?Anti-Kickback? Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ?Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States?). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 29 CFR ? 5.5(a)(3)(ii)(A) requires, in part, that a contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution shall require a clause that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the agency. Agencies which do not directly Carroll County, Ohio Schedule of Findings and Questioned Costs (continued) 2 CFR Section 200.515 June 30, 2022 3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS (Continued) Material Weakness and Material Noncompliance ? Wage Rate Requirements (continued) enter into such contracts shall promulgate the necessary regulations or procedures to require the recipient of the Federal assistance to insert in its contracts the provisions of ? 5.5. Condition: The School District was unable to provide documentation to support compliance with wage rate requirements in relation to an outdoor pavilion project funded with Education Stabilization Funds in the amount of $1,344,969. The School District provided assurances through the Ohio Department of Education?s Comprehensive Continuous Improvement Plan (CCIP) system that it would comply with wage rate requirements for approved contracts, however we noted project agreement did not include provisions for wage rate requirements. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Cause: Prior administration with the School District did not verify that all necessary contract language was included in the project request for bids, and therefore contractors were not made aware that the wage rate provisions were required. Effect: Without proper controls over wage rate requirements, there is an increased risk that the School District, its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. Recommendation: The School District should establish internal controls to include the required clauses of 29 CFR 5.5, particularly those concerning prevailing wage rate and the requirement that the contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the School District, in its requests for quotes or bids for any projects greater than $2,000 that are covered by wage rate requirements. In addition, the District should obtain all necessary information from contractors to document compliance with wage rate requirements. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan