Audit 307824

Significant Deficiency 2023-001 – Special Tests and Provisions – Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Department of Education: ALN 84.425 – Education Stabilization Fund Criteria: The following CFRs apply to this finding: 29 CFR 5.5. Condition: During audit procedures, it was identified that the Unit had construction projects in excess of $2,000 that were not in compliance with the requirements in the above criteria. It was determined that the contractor’s certified payroll did not include all required elements. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with federal Wage Rate Requirements. Identification of Questioned Costs: None identified. Context: During audit procedures, 4 out of 4 certified payrolls tested did not complete the certified payroll requirement elements properly. This is not a statistically valid sample. Repeat Finding: This is not repeat finding. Recommendation: It is recommended that the Unit familiarize themselves with Federal Wage Rate Requirements and implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Regional School Unit No. 55.

Significant Deficiency 2023-001 – Special Tests and Provisions – Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Department of Education: ALN 84.425 – Education Stabilization Fund Criteria: The following CFRs apply to this finding: 29 CFR 5.5. Condition: During audit procedures, it was identified that the Unit had construction projects in excess of $2,000 that were not in compliance with the requirements in the above criteria. It was determined that the contractor’s certified payroll did not include all required elements. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with federal Wage Rate Requirements. Identification of Questioned Costs: None identified. Context: During audit procedures, 4 out of 4 certified payrolls tested did not complete the certified payroll requirement elements properly. This is not a statistically valid sample. Repeat Finding: This is not repeat finding. Recommendation: It is recommended that the Unit familiarize themselves with Federal Wage Rate Requirements and implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by Regional School Unit No. 55.