EIN: 596000654
UEI: LMC6QJH6BKE4
Data as of August 19, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 6, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 6, 2024, which was (744 days ago).
What is a management decision? →Finding - Contrary to Federal regulations, the District under allocated Title I Program funds totaling $905,329 to 15 schools. Criteria - Title 34, Section 200.78, Code of Federal Regulations, requires the District to allocate Title I schoolwide program funds to schools identified as eligible and selected to participate, in rank order, on the basis of the total number of children from low-income families in each school. The District is not required to allocate the same per-pupil amount (PPA) to each participating school provided that it allocates higher PPAs to schools with higher concentrations of poverty than to schools with lower concentrations of poverty. Condition - The District annually applies for Title I Program funding and the application includes a budget and an eligibility survey to document the amounts budgeted per participating school. During the 2022-23 fiscal year, the District expended $6,754,190 from the Title I Program, including $5,517,453 expended for the District’s 16 elementary, middle, and high schools. As part of our audit, we requested for examination District records supporting the budget allocation amounts to the 16 schools and final budget amounts evidencing the allocations were provided. However, District records indicated that the ranking of all 16 District Title I schools did not agree with the ranking based on the percent of students from low-income families. Specifically, 15 schools with poverty concentrations ranging from 52.13 to 83.17 percent were allocated and received $16,835 to $202,116 less per pupil funding than a school with a lower poverty concentration of 46.80 percent. Cause - The District experienced changes in key personnel and had not established effective procedures for monitoring Title I budgets at participating schools. Effect -Educational services at the 15 District schools under allocated Title I Program funds totaling $905,329 were not funded at required levels. In response to our inquiries, District personnel concurred with the calculated questioned costs. Recommendation - The District should establish procedures for ensuring and documenting that Title I Program resources are properly allocated to schools. In addition, the District should provide documentation to the FDOE supporting the allowability of the questioned costs totaling $905,329 or allocate that amount to the applicable underfunded Title I schools. District Response - Title I rank and serve budgets are based on the original/final budgets. The total budget per school should never change and should match the rank and serve allocation. Because of staff turnover in Federal Programs, Business Operations, and Finance, the District was unable to ensure the schools remained in rank and serve order for 2022-2023. An error was made during the year-end budget cleanup, which changed the schools’ original budget. Budget revisions were done, to the Title I budget, to clean up negatives and bring major function object positive at year-end. The entry should have been done within the individual school budgets so the total budget would match the original/final budget. If this entry had not been done, the rank and serve allocations would match to the original budget. Previously, the District has monitored the program correctly and has maintained the District’s rank and serve order. The District will provide training and guidance to the new staff overseeing the grant and the budget allocations to ensure and enforce rank and serve order is maintained going forward. The District has reached out to DOE for guidance on correcting the finding and will follow up with Sean Freeman in the audit resolution and monitoring department once the audit report is published.
Corrective Action Plan - Title I rank and serve budgets are based on the original/final budgets. The total budget per school should never change and should match the rank and serve allocation. Because of staff turnover in Federal Programs, Business Operations, and Finance, the District was unable to ensure the schools remained in rank and serve order for 2022-2023. An error was made during the year-end budget cleanup, which changed the schools' original budget. Budget revisions were done, to the Title I budget, to clean up negatives and bring major function object positive at year-end. The entry should have been done within the individual school budgets so the total budget would match the original/final budget. If this entry had not been done, the rank and serve allocations would match to the original buget. Previously, the District has monitored the program correctly and has maintained the District’s rank and serve order. The District will provide training and guidance to the new staff overseeing the grant and the budget allocations to ensure and enforce rank and serve order is maintained going forward. The District has reached out to DOE for guidance on correcting the finding and will follow up with Sean Freeman in the audit resolution and monitoring department once the audit report is published.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 29, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 29, 2023, which was (1118 days ago).
What is a management decision? →Finding: The District did not always comply with Federal regulations by maintaining records to accurately reflect employee work performed for and support the distribution of employee salary and benefit charges to the SEC. Criteria: Title 2, Section 200.430(i), CFR, requires that charges for Federal awards for salaries be based on records that accurately reflect the work performed and support the distribution of employee salaries among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. In addition, Title 2, Section 200.303(a), CFR, requires the District to maintain effective internal controls over the SEC. To ensure that charges are allowable, an appropriate system of internal controls requires that review and approval of program or grant expenditures be performed by personnel (e.g., the Exceptional Student Education Director) who possess adequate knowledge and experience of program requirements. Condition: For the 2021-22 fiscal year, the District reported SEC expenditures totaling $4 million, including $3.6 million for salaries and benefits for 210 employees. To determine the propriety and allowability of SEC expenditures, we requested for examination District records supporting SEC expenditures totaling $872,000 for 23 employees. Although we requested, District records were not provided for 11 of the 23 employees to identify the work they performed or to support salaries and benefits distributed to the SEC totaling $309,500. We expanded our procedures to interview the 11 employees and determined that, based on their responses, their salaries and benefits were appropriately distributed to the SEC. However, our procedures cannot substitute the District?s responsibility to ensure that salaries and benefits charged to the SEC are properly supported. Cause: The District did not always maintain records to identify the work employees performed or support the salaries and benefits distributed to the SEC, and an employee with knowledge and experience of the SEC requirements (e.g., the Exceptional Student Education Director) was not required to, and did not, document review and approval of the salary and benefit charges. Effect: Absent effective procedures to document support for the distribution of employee salaries and benefits to the SEC, including the documented review and approval of those charges by the Exceptional Student Education Director or other personnel with knowledge and experience of SEC requirements, there is an increased risk that expenditures may be inappropriately charged to the SEC. Recommendation: The District should establish procedures to ensure that District records accurately reflect the work performed for SEC and support the distribution of employee salary and benefit charges to the SEC. Such procedures should require that the Exceptional Student Education Director or other personnel with appropriate knowledge and experience document review and approval of those charges. District Response: The District will review its procedures to ensure that all federally funded personnel complete a Personnel Activity Report (PAR) form including employees who start late.
The District will review its procedures to ensure that all federally funded personnel complete a Personnel Activity Report (PAR) form including employees who start late.
Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000. Criteria: The ESSER 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, CFR (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 and subcontractors pay workers the prevailing wage rates established by the United States Department of Labor. 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 work. Condition: During the 2021-22 fiscal year, the Board entered into construction contracts totaling $4,233,177 for heating, ventilation, and air-conditioning (HVAC) renovation projects at the Lake Placid Middle School, Cracker Trail Elementary, and Lake Placid Elementary Schools. As of June 30, 2022, the District had expended ESSER funds totaling $1,622,230 on the projects. To evaluate District compliance with the Davis-Bacon Act provisions, we requested for examination District records to support the wage rates paid by the HVAC contractors. Our examination disclosed that the contracts for the three HVAC projects contained clauses that required the projects to comply with the Davis Bacon Act provisions. However, District personnel indicated that they had not performed direct comparisons of wage rates paid by the contractors for the three HVAC projects with the prevailing wages established by the United States Department of Labor. Cause: While District contracts contained standard language to address applicable Federal requirements, District personnel were not aware that the Davis-Bacon Act applied to the HVAC projects and, therefore, did not verify wage rates paid by contractors. Effect: As a result of our inquiry, District personnel obtained certified payrolls from the HVAC contractor demonstrating the prevailing wage rates were paid for these projects. Notwithstanding, our procedures do not substitute for District management?s responsibility to implement appropriate controls to demonstrate compliance with the Davis-Bacon Act requirements. Without an appropriate understanding of when to apply the Davis-Bacon Act requirements, 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. Recommendation: The District should enhance procedures to ensure that wage rates paid by the contractor and subcontractors for Federally funded facility projects that exceed $2,000 are directly compared to, and determined to be consistent with, the prevailing wage rates established for the geographic area by the United States Department of Labor. Such enhancements should include appropriate training for staff to understand their responsibility for demonstrating compliance with the Davis-Bacon Act. District Response: The District complied with the Davis-Bacon Act for another construction project at Lake Placid Elementary, however, we did not initially believe the Davis-Bacon Act applied to the installation of equipment replacement (Air Conditioning Units). We will consult with the Department of Education and follow their guidance.
The District complied with the Davis-Bacon Act for another construction project at Lake Placid Elementary, however, we did not initially believe the Davis-Bacon Act applied to the installation of equipment replacement (Air Conditioning Units). We will consult with the Department of Education and follow their guidance.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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