2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-010 Coronavirus Relief Funding (CRF) Reporting – Repeated 2021/2022-018 CFDA Title: CRF CFDA Number: 21.019 Federal Award Number: N/A Federal Agency: U.S. Department of Treasury Pass-through Entity: Montana Governors Office Condition: The District continues to report the CRF funding received in fiscal year 2021 for Local Over schedule Transportation as expended which was not supported by the accounting records, and has not taken steps to resolve the liabilities. This is a repeat finding from the prior year audit. Context: In the prior audits, it was identified that CRF Local Over Schedule Transportation monies had not been spent and was determined it was owed back to state because the District was not able to provide documentation to support the money being used. In the current fiscal year, we followed with the District on this issue and it was not able to provide supporting documentation to support the funding being used and no action was taken to reach out to appropriate departments at state to determine how to resolve. Criteria: CRF Local Over Schedule Transportation monies were for additional pupil transportation related expenses related to the Coronavirus during the pandemic period of March 1, 2020, through December 30, 2020. Those expenditures related to this funding should be separately identified in the accounting system to support the amount reported. Any unspent funds at December 30, 2020 were to be sent back to the state. Effect: Noncompliance with the reporting requirement of CRF funding existed in the prior periods as the accounting system does not support expenditures for CRF Local Over schedule Transportation monies received, and therefore should be sent back to the state agency that provided the funding. Cause: The District was not properly accounting for the CRF funding as provided by the Montana Office of Public Instruction chart of accounts and did not code expenditures related to the funding directly to the grant monies. Recommendation :We recommend the District identify directly any expenditures which were for additional pupil transportation costs related to Coronavirus, then return any funding received which was not expended. In addition, the District should reach out to the Montana State Department of Commerce to work through how to submit the money back if no costs can be identified for that period.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141--3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-010 Coronavirus Relief Funding (CRF) Reporting – Repeated 2021/2022-018 CFDA Title: CRF CFDA Number: 21.019 Federal Award Number: N/A Federal Agency: U.S. Department of Treasury Pass-through Entity: Montana Governors Office Condition: The District continues to report the CRF funding received in fiscal year 2021 for Local Over schedule Transportation as expended which was not supported by the accounting records, and has not taken steps to resolve the liabilities. This is a repeat finding from the prior year audit. Context: In the prior audits, it was identified that CRF Local Over Schedule Transportation monies had not been spent and was determined it was owed back to state because the District was not able to provide documentation to support the money being used. In the current fiscal year, we followed with the District on this issue and it was not able to provide supporting documentation to support the funding being used and no action was taken to reach out to appropriate departments at state to determine how to resolve. Criteria: CRF Local Over Schedule Transportation monies were for additional pupil transportation related expenses related to the Coronavirus during the pandemic period of March 1, 2020, through December 30, 2020. Those expenditures related to this funding should be separately identified in the accounting system to support the amount reported. Any unspent funds at December 30, 2020 were to be sent back to the state. Effect: Noncompliance with the reporting requirement of CRF funding existed in the prior periods as the accounting system does not support expenditures for CRF Local Over schedule Transportation monies received, and therefore should be sent back to the state agency that provided the funding. Cause: The District was not properly accounting for the CRF funding as provided by the Montana Office of Public Instruction chart of accounts and did not code expenditures related to the funding directly to the grant monies. Recommendation :We recommend the District identify directly any expenditures which were for additional pupil transportation costs related to Coronavirus, then return any funding received which was not expended. In addition, the District should reach out to the Montana State Department of Commerce to work through how to submit the money back if no costs can be identified for that period.