Audit 302966

FY End
2023-06-30
Total Expended
$793,940
Findings
20
Programs
10
Organization: Vaughn Public Schools (MT)
Year: 2023 Accepted: 2024-04-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
392675 2023-004 Material Weakness - N
392676 2023-004 Material Weakness - N
392677 2023-004 Material Weakness - N
392678 2023-004 Material Weakness - N
392679 2023-004 Material Weakness - N
392680 2023-005 Significant Deficiency - F
392681 2023-005 Significant Deficiency - F
392682 2023-005 Significant Deficiency - F
392683 2023-005 Significant Deficiency - F
392684 2023-005 Significant Deficiency - F
969117 2023-004 Material Weakness - N
969118 2023-004 Material Weakness - N
969119 2023-004 Material Weakness - N
969120 2023-004 Material Weakness - N
969121 2023-004 Material Weakness - N
969122 2023-005 Significant Deficiency - F
969123 2023-005 Significant Deficiency - F
969124 2023-005 Significant Deficiency - F
969125 2023-005 Significant Deficiency - F
969126 2023-005 Significant Deficiency - F

Contacts

Name Title Type
UWC5W9MLVRJ5 Wendy Cavill Auditee
4069652231 Robert Denning Auditor
No contacts on file

Notes to SEFA

Title: Value of Federal Awards Expended in the form of Noncash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Vaughn Public School, Cascade County, Montana. The information in this schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Vaughn Public School, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Vaughn Public School. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of the basic financial statements. Expenditures reported on 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 Vaughn Public School has elected not to use the 10 percent de Minimis indirect cost rate as provided in Sec. 200.414 Indirect Costs under Uniform Guidance. • Food Commodities’ value equals the fair value at the time of the receipt $7,642

Finding Details

2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-004 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 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 roof construction and kitchen remodel electrical 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.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.
2022/2023-005 Capital purchases CFDA Title: ESSER II Base CFDA Number: 84.425D and 84.425U Federal Award Number: 007-0127-92-2021 & 007-0127-93-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District had several purchases related to the kitchen remodel which were not coded as capital outlay. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the coding was for purchased services instead of capital outlay related to the kitchen remodel. Criteria: All costs associated with the remodel/construction project should be coded as capital outlay and included in the cost of the capital assets. Effect: Internal control weakness in which capital outlay was understated and therefore capital assets were understated $24,752. These misstatements were corrected and are reflected in the financials for fiscal year 2023. Cause: An error was made when the claims were coded. Recommendation: The District should implement internal controls to ensure all costs associated with a construction and/or remodel project is coded as capital outlay and added as capital assets.