2021/2 022 Wage Rate Compliace CFDA Title: Impact Aid
CFDA Number: 84.041
Federal Award Number: 2022
Federal Agency: U.S. Department of Education Pass-through Entity: Direct
Condition:
The District did not comply with the wage rate compliance related to the teacher housing civil
construction project expenditures paid from Impact Aid monies.
Criteria:
Section 7007 construction funds, as well as any Section 7002 or 7003(b) funds spent for
construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).
Compliance Requirement - 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).
Non-federal 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
non-Federal 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).
Context:
During the testing of significant claims for the Impact Aid major program related to
construction, we noted claims in which the wage rate requirements would apply.
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
2021/2022-012 Late Audit Submission
CFDA Title: Impact Aid
CFDA Number: 84.041
Federal Award Number: 2021 and 2022 Federal Agency: U.S. Department of Education Pass-through
Entity: Direct
Condition:
Montana local governments with a June 30th fiscal year end must submit their audit report to the MT
Department of Administration and the Federal Clearing house by March 31st, following the fiscal
year end. The District’s audit was not completed until May 2024.
Criteria:
The audit for the fiscal year ended June 30, 2021 and June 30th, 2022, was due to the State and the
Federal government by March 31, 2022 for fiscal year 2021 and March 31, 2023 for fiscal year
2022 as required by MT Administrative Rules 2.4.411 and the Federal Uniform
Guidance/A-133 rules.
Context:
Per review of the audit compliance requirements for both the State of Montana and the Federal
government.
Effect:
The District is late in completing their fiscal year 2021 and 2022 audit.
Cause:
The District did not even sign a contract with the audit firm until July 2023 and was unable to
provide needed documentation to complete both the financial statement portion of the audit and the
federal compliance testing for the audit.
Recommendation:
We recommend the District complete their annual audits in compliance with MT
Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.
2021/2022-013
Impact Aid Application Support
CFDA Title: Impact Aid CFDA Number: 84.041
Federal Award Number: 2021
Federal Agency: Department of Education Pass-through Entity: Direct
Condition:
The District was not able to provide the membership support documentation for the 2021 Elementary
Impact Aid Application.
Criteria:
The special reporting criteria for Impact Aid compliance testing would require the auditor to
verify the membership reported on the applications to test compliance.
Context:
We requested the membership support documentation to support the 2021 and 2022 Impact Aid
Applications.
Effect:
An internal control weakness was noted in that the District was not able to provide the membership
support documentation for the 2021 Elementary Impact Aid application which used the survey date of
10/7/19, using the prior year application numbers. This was allowed as a result of the public
health emergency related to the coronavirus, the Impact Aid Coronavirus Relief Act.
Note: Impact Aid was audited in fiscal year 2020 with no findings. This indicates the membership
amounts were supported which would have been used for the 2021 application. When
compared to the 2020 application, we noted the 2021 application was understated 1 in total which
was 1 child with disabilities.
Cause:
A change in staffing at the District in which the current staff was not able to locate the
information from the 2019 Impact Aid Application.
Recommendation:
The District should implement internal control procedures to ensure supporting
documentation is maintained for the required period.
2021/2 022 Wage Rate Compliace CFDA Title: Impact Aid
CFDA Number: 84.041
Federal Award Number: 2022
Federal Agency: U.S. Department of Education Pass-through Entity: Direct
Condition:
The District did not comply with the wage rate compliance related to the teacher housing civil
construction project expenditures paid from Impact Aid monies.
Criteria:
Section 7007 construction funds, as well as any Section 7002 or 7003(b) funds spent for
construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).
Compliance Requirement - 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).
Non-federal 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
non-Federal 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).
Context:
During the testing of significant claims for the Impact Aid major program related to
construction, we noted claims in which the wage rate requirements would apply.
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
2021/2022-012 Late Audit Submission
CFDA Title: Impact Aid
CFDA Number: 84.041
Federal Award Number: 2021 and 2022 Federal Agency: U.S. Department of Education Pass-through
Entity: Direct
Condition:
Montana local governments with a June 30th fiscal year end must submit their audit report to the MT
Department of Administration and the Federal Clearing house by March 31st, following the fiscal
year end. The District’s audit was not completed until May 2024.
Criteria:
The audit for the fiscal year ended June 30, 2021 and June 30th, 2022, was due to the State and the
Federal government by March 31, 2022 for fiscal year 2021 and March 31, 2023 for fiscal year
2022 as required by MT Administrative Rules 2.4.411 and the Federal Uniform
Guidance/A-133 rules.
Context:
Per review of the audit compliance requirements for both the State of Montana and the Federal
government.
Effect:
The District is late in completing their fiscal year 2021 and 2022 audit.
Cause:
The District did not even sign a contract with the audit firm until July 2023 and was unable to
provide needed documentation to complete both the financial statement portion of the audit and the
federal compliance testing for the audit.
Recommendation:
We recommend the District complete their annual audits in compliance with MT
Administrative Rules 2.4.411 and federal rules described in the Uniform Guidance/A-133.
2021/2022-013
Impact Aid Application Support
CFDA Title: Impact Aid CFDA Number: 84.041
Federal Award Number: 2021
Federal Agency: Department of Education Pass-through Entity: Direct
Condition:
The District was not able to provide the membership support documentation for the 2021 Elementary
Impact Aid Application.
Criteria:
The special reporting criteria for Impact Aid compliance testing would require the auditor to
verify the membership reported on the applications to test compliance.
Context:
We requested the membership support documentation to support the 2021 and 2022 Impact Aid
Applications.
Effect:
An internal control weakness was noted in that the District was not able to provide the membership
support documentation for the 2021 Elementary Impact Aid application which used the survey date of
10/7/19, using the prior year application numbers. This was allowed as a result of the public
health emergency related to the coronavirus, the Impact Aid Coronavirus Relief Act.
Note: Impact Aid was audited in fiscal year 2020 with no findings. This indicates the membership
amounts were supported which would have been used for the 2021 application. When
compared to the 2020 application, we noted the 2021 application was understated 1 in total which
was 1 child with disabilities.
Cause:
A change in staffing at the District in which the current staff was not able to locate the
information from the 2019 Impact Aid Application.
Recommendation:
The District should implement internal control procedures to ensure supporting
documentation is maintained for the required period.