Audit 366468

2023-004 Prevailing Wage Rates (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Construction contracts in excess of $2,000 funded by federal grants are subject to prevailing wage rates. The contractor is required to submit weekly payroll reports and a statement of compliance. Condition: The District funded a construction contract for $664,456 with Education Stabilization Fund-ESSER II and ESSER III grant funds without adding the requirement for prevailing wage rates in the contract. Cause: The District hired an architect to manage the construction contract and they did not add the prevailing wage rate requirements to the contract for the construction project. Effect: The contractor did not submit weekly payroll reports or compliance statements to the architect or District during the construction project. Context: The contractor stated that wages paid in this region are generally above the prevailing wage rate required, but the weekly compliance paperwork was not required for this contract. Repeat Finding: No. Recommendations: When federal grant funds are utilized for construction, the prevailing wage rate requirements should be researched and included in the contracts, as applicable. Views of Responsible Officials: The District will ensure the prevailing wage rate requirement will be included in future contracts and verify weekly payroll reports or compliance statements are prepared by contractors.

2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.

2023-004 Prevailing Wage Rates (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Construction contracts in excess of $2,000 funded by federal grants are subject to prevailing wage rates. The contractor is required to submit weekly payroll reports and a statement of compliance. Condition: The District funded a construction contract for $664,456 with Education Stabilization Fund-ESSER II and ESSER III grant funds without adding the requirement for prevailing wage rates in the contract. Cause: The District hired an architect to manage the construction contract and they did not add the prevailing wage rate requirements to the contract for the construction project. Effect: The contractor did not submit weekly payroll reports or compliance statements to the architect or District during the construction project. Context: The contractor stated that wages paid in this region are generally above the prevailing wage rate required, but the weekly compliance paperwork was not required for this contract. Repeat Finding: No. Recommendations: When federal grant funds are utilized for construction, the prevailing wage rate requirements should be researched and included in the contracts, as applicable. Views of Responsible Officials: The District will ensure the prevailing wage rate requirement will be included in future contracts and verify weekly payroll reports or compliance statements are prepared by contractors.

2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.

2023-004 Prevailing Wage Rates (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Construction contracts in excess of $2,000 funded by federal grants are subject to prevailing wage rates. The contractor is required to submit weekly payroll reports and a statement of compliance. Condition: The District funded a construction contract for $664,456 with Education Stabilization Fund-ESSER II and ESSER III grant funds without adding the requirement for prevailing wage rates in the contract. Cause: The District hired an architect to manage the construction contract and they did not add the prevailing wage rate requirements to the contract for the construction project. Effect: The contractor did not submit weekly payroll reports or compliance statements to the architect or District during the construction project. Context: The contractor stated that wages paid in this region are generally above the prevailing wage rate required, but the weekly compliance paperwork was not required for this contract. Repeat Finding: No. Recommendations: When federal grant funds are utilized for construction, the prevailing wage rate requirements should be researched and included in the contracts, as applicable. Views of Responsible Officials: The District will ensure the prevailing wage rate requirement will be included in future contracts and verify weekly payroll reports or compliance statements are prepared by contractors.

2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.

2023-004 Prevailing Wage Rates (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Construction contracts in excess of $2,000 funded by federal grants are subject to prevailing wage rates. The contractor is required to submit weekly payroll reports and a statement of compliance. Condition: The District funded a construction contract for $664,456 with Education Stabilization Fund-ESSER II and ESSER III grant funds without adding the requirement for prevailing wage rates in the contract. Cause: The District hired an architect to manage the construction contract and they did not add the prevailing wage rate requirements to the contract for the construction project. Effect: The contractor did not submit weekly payroll reports or compliance statements to the architect or District during the construction project. Context: The contractor stated that wages paid in this region are generally above the prevailing wage rate required, but the weekly compliance paperwork was not required for this contract. Repeat Finding: No. Recommendations: When federal grant funds are utilized for construction, the prevailing wage rate requirements should be researched and included in the contracts, as applicable. Views of Responsible Officials: The District will ensure the prevailing wage rate requirement will be included in future contracts and verify weekly payroll reports or compliance statements are prepared by contractors.

2023-005 Funding Source in Property Records (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Equipment and real property improvements funded with federal grants are required to include the funding source in the property records. This is to ensure the federal government is properly compensated for property that is sold. Condition: The District did not include the source of funding on their capital asset depreciation schedule. Cause: The District did not realize this information was required to be included on the capital asset depreciation schedule. Effect: If the equipment or property was sold, the District may not realize the additional requirements for federally funded items. Context: The District did not sell any federally funded capital assets in fiscal years 2022 or 2023. The District does not generally sell capital assets until their useful life has been exhausted. Repeat Finding: No. Recommendations: When federal grant funds are utilized for equipment and real property improvements, the funding source should be included on the capital asset depreciation schedule so if the asset is sold any additional requirements can be met. Views of Responsible Officials: The District will include the funding source on the capital asset depreciation schedule on future purchases. The District will make efforts to identify prior funding sources on prior capital assets and add that information to the capital asset depreciation schedule.