Audit 32687

Criteria or specific requirement (including statutory, regulatory, or other citation) All laborers and mechanics employed by contractors or subcontractors under 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. The District was subject to this requirement during fiscal year 2022 as a result of certain renovations that were performed. Condition During fiscal year 2022, the District began significant building renovation work requiring compliance with Wage Rate Requirements. The District did not execute signed contracts with its contractors and subcontractors evidencing their compliance with Wage Rate Requirements. Questioned Costs None. Context The District has not historical had significant capital outlay or construction projects. This deficiency in internal control resulted from activities new to the District and lacking proper controls over the related compliance requirements. Effect The District was not in compliance with the Uniform Guidance. Cause The District did not execute signed contracts with its contractors and subcontractors evidencing their compliance with Wage Rate Requirements. Recommendation The District should review all compliance requirements for its federal assistance funds and ensure controls are implemented to maintain compliance with all requirements. After the work was complete, management obtained applicable wage requirement certifications. Management's response Management agrees with this finding, Management is in the process of determining the most efficient way to add levels of review without incurring significant additional costs.

Criteria or specific requirement (including statutory, regulatory, or other citation) All laborers and mechanics employed by contractors or subcontractors under 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. The District was subject to this requirement during fiscal year 2022 as a result of certain renovations that were performed. Condition During fiscal year 2022, the District began significant building renovation work requiring compliance with Wage Rate Requirements. The District did not execute signed contracts with its contractors and subcontractors evidencing their compliance with Wage Rate Requirements. Questioned Costs None. Context The District has not historical had significant capital outlay or construction projects. This deficiency in internal control resulted from activities new to the District and lacking proper controls over the related compliance requirements. Effect The District was not in compliance with the Uniform Guidance. Cause The District did not execute signed contracts with its contractors and subcontractors evidencing their compliance with Wage Rate Requirements. Recommendation The District should review all compliance requirements for its federal assistance funds and ensure controls are implemented to maintain compliance with all requirements. After the work was complete, management obtained applicable wage requirement certifications. Management's response Management agrees with this finding, Management is in the process of determining the most efficient way to add levels of review without incurring significant additional costs.