Finding - The District did not comply with the Davis‑Bacon Act contracting and payment requirements for construction contracts totaling $1.1 million financed by the Federal Education Stabilization (ES) Fund. As a result, the District incurred questioned costs of that amount. Criteria - The ES Fund provides Federal funds for school facility repairs and improvements. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The United States Department of Labor established “prevailing wages” by geographic area and interprets the Davis-Bacon Act to apply to construction, alteration, or repair of a public building or public work. Condition - For the 2023-24 fiscal year, the District expended ES Fund moneys totaling $12,336,617, including $1,107,230 for four contracts (each exceeding $2,000) related to heating, ventilation, and air-conditioning replacement and flooring replacement. We noted that the purchase orders, requests for proposals, and contracts for those services did not contain clauses that required compliance with the Davis-Bacon Act provisions and the contractors did not submit required weekly certified payrolls to the District. Cause - District personnel indicated that they were not aware that the Davis-Bacon Act applied to these Federally funded projects and, therefore, did not include the appropriate wage rate clauses in the applicable procurement documents or verify that the prevailing wage rates were paid. Effect - Absent the required contract clauses and weekly certified payrolls, there is an increased risk that construction contractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Although we requested, the District did not provide certified payrolls from the contractors demonstrating that the prevailing wage rates were paid for the services, resulting in questioned costs totaling $1,107,230. Recommendation - The District should enhance procedures to ensure compliance with all Davis‑Bacon Act requirements. Such enhancements should ensure that applicable Federally funded facility contracts require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. In addition, the District should document to the FDOE the allowability of the questioned costs or contact the FDOE regarding necessary corrective action. District Response - The District has reviewed and updated controls to ensure future compliance with Federal grant regulations.
Finding - The District did not comply with the Davis‑Bacon Act contracting and payment requirements for construction contracts totaling $1.1 million financed by the Federal Education Stabilization (ES) Fund. As a result, the District incurred questioned costs of that amount. Criteria - The ES Fund provides Federal funds for school facility repairs and improvements. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The United States Department of Labor established “prevailing wages” by geographic area and interprets the Davis-Bacon Act to apply to construction, alteration, or repair of a public building or public work. Condition - For the 2023-24 fiscal year, the District expended ES Fund moneys totaling $12,336,617, including $1,107,230 for four contracts (each exceeding $2,000) related to heating, ventilation, and air-conditioning replacement and flooring replacement. We noted that the purchase orders, requests for proposals, and contracts for those services did not contain clauses that required compliance with the Davis-Bacon Act provisions and the contractors did not submit required weekly certified payrolls to the District. Cause - District personnel indicated that they were not aware that the Davis-Bacon Act applied to these Federally funded projects and, therefore, did not include the appropriate wage rate clauses in the applicable procurement documents or verify that the prevailing wage rates were paid. Effect - Absent the required contract clauses and weekly certified payrolls, there is an increased risk that construction contractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Although we requested, the District did not provide certified payrolls from the contractors demonstrating that the prevailing wage rates were paid for the services, resulting in questioned costs totaling $1,107,230. Recommendation - The District should enhance procedures to ensure compliance with all Davis‑Bacon Act requirements. Such enhancements should ensure that applicable Federally funded facility contracts require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. In addition, the District should document to the FDOE the allowability of the questioned costs or contact the FDOE regarding necessary corrective action. District Response - The District has reviewed and updated controls to ensure future compliance with Federal grant regulations.
Finding - Due to District control deficiencies, the District made a duplicate payment totaling $120,918 for construction services from ES Fund proceeds, resulting in questioned costs of that amount. Criteria -The ES Fund provides funding to prevent, prepare for, and respond to the COVID-19 pandemic, and the District must comply with the Uniform Guidance in Title 2, Code of Federal Regulations (CFR), Part 200 in their operation of the program. Title 2, Section 200.1, CFR, defines improper payments as a payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements, including any duplicate payment. Condition - During our audit of construction services discussed in Finding No. 2024-005, we identified a duplicate payment of $120,918 charged to the ES Fund. Our audit procedures determined that both the original payment of $120,918, made in January 2024 and the subsequent duplicate payment made in March 2024 were based on the same invoice for construction services. Since the latter payment was improper, $120,918 represents questioned costs to the program. Although we requested, District records were not provided to demonstrate that the District was aware of the duplicate payment, any District efforts to obtain reimbursement for the duplicate payment, or that the vendor had contacted the District about the duplicate payment. Cause - District personnel indicated that turnover and reassignments of duties during the year contributed to inadvertently processing two accounts payable checks for the same invoice. Also, District controls had not been established to require knowledgeable staff to independently review and approve invoices for payment of ES Fund expenditures to ensure payments are reasonable and necessary. Further, District controls were not sufficient to detect duplicate payments. Effect - The duplicate payment of $120,918 resulted in an unnecessary expenditure of ES Fund moneys and the District did not comply with Federal regulations that require all Federal expenditures to represent reasonable and necessary charges. Consequently, the ES Fund incurred questioned costs totaling $120,918. We expanded our audit procedures to determine whether other significant duplicate payments occurred from ES Fund resources and did not identify similar payments. Recommendation - District procedures should be enhanced to prevent duplicate payments from Federal programs. Such procedures should require knowledgeable staff to independently review and approve invoices for payment of ES Fund expenditures to ensure payments are reasonable and necessary. District procedures should also be enhanced to detect and promptly resolve duplicate payments when they do occur. In addition, the District should seek reimbursement of the duplicate payment from the construction service provider and consult with the grantor agency to remedy the questioned costs of $120,918. District Response - The District is in the process of reviewing and updating controls to ensure payments for construction services are made timely and consistently. The District is requesting a refund from the vendor.
Finding - Contrary to Federal regulations, District records did not always accurately reflect employee work performed for, and support the distribution of employee salaries and benefits charged to, the SEC. Criteria - Title 2, Section 200.430(i), CFR, requires that charges for Federal awards for salaries be based on records that accurately reflect the work performed and support the distribution of employee salaries among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. In addition, Title 2, Section 200.303(a), CFR, requires the District to maintain effective internal controls over the SEC. To ensure that charges are allowable, an appropriate system of internal controls requires that review and approval of program or grant expenditures be performed by personnel (e.g., the Exceptional Student Education Director) who possess adequate knowledge and experience of program requirements. Condition - For the 2023-24 fiscal year the District reported SEC expenditures totaling $1.8 million, including $1.5 million for salaries and benefits for 83 employees. To determine the propriety and allowability of SEC expenditures, we requested for examination District records supporting salaries and benefits totaling $628,953 charged to the SEC for 16 employees. Although we requested, District records were not provided to identify the work that the 16 employees performed to support the salaries and benefits charged to the SEC. Cause - The District did not always maintain records to identify the work employees performed to support the salaries and benefits charged to the SEC, and an employee with knowledge and experience of the SEC requirements was not required to, and did not, document review and approval of the salary and benefit charges. Effect - Absent effective procedures to document support for the distribution of employee salaries and benefits to the SEC, including the documented review and approval of those charges by the Exceptional Student Education Director or other personnel with knowledge and experience of SEC requirements, there is an increased risk that expenditures may be inappropriately charged to the SEC. We expanded our procedures to interview the 16 employees and determined that their salaries and benefits were appropriately charged to the SEC. However, our procedures cannot substitute the District’s responsibility to ensure that salaries and benefits charged to the SEC are properly supported. Recommendation - The District should establish procedures to ensure that District records accurately reflect the work performed to support the distribution of employee salaries and benefits charged to the SEC. Such procedures should require that the Exceptional Student Education Director or other personnel with appropriate knowledge and experience document review and approval of those charges. District Response - The District is in the process of reviewing and updating controls to ensure required time and effort logs are kept in the District's fiscal management system and routine submission of forms is enforced by the grant managers.
Finding - Contrary to Federal regulations, District records did not always accurately reflect employee work performed for, and support the distribution of employee salaries and benefits charged to, the SEC. Criteria - Title 2, Section 200.430(i), CFR, requires that charges for Federal awards for salaries be based on records that accurately reflect the work performed and support the distribution of employee salaries among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. In addition, Title 2, Section 200.303(a), CFR, requires the District to maintain effective internal controls over the SEC. To ensure that charges are allowable, an appropriate system of internal controls requires that review and approval of program or grant expenditures be performed by personnel (e.g., the Exceptional Student Education Director) who possess adequate knowledge and experience of program requirements. Condition - For the 2023-24 fiscal year the District reported SEC expenditures totaling $1.8 million, including $1.5 million for salaries and benefits for 83 employees. To determine the propriety and allowability of SEC expenditures, we requested for examination District records supporting salaries and benefits totaling $628,953 charged to the SEC for 16 employees. Although we requested, District records were not provided to identify the work that the 16 employees performed to support the salaries and benefits charged to the SEC. Cause - The District did not always maintain records to identify the work employees performed to support the salaries and benefits charged to the SEC, and an employee with knowledge and experience of the SEC requirements was not required to, and did not, document review and approval of the salary and benefit charges. Effect - Absent effective procedures to document support for the distribution of employee salaries and benefits to the SEC, including the documented review and approval of those charges by the Exceptional Student Education Director or other personnel with knowledge and experience of SEC requirements, there is an increased risk that expenditures may be inappropriately charged to the SEC. We expanded our procedures to interview the 16 employees and determined that their salaries and benefits were appropriately charged to the SEC. However, our procedures cannot substitute the District’s responsibility to ensure that salaries and benefits charged to the SEC are properly supported. Recommendation - The District should establish procedures to ensure that District records accurately reflect the work performed to support the distribution of employee salaries and benefits charged to the SEC. Such procedures should require that the Exceptional Student Education Director or other personnel with appropriate knowledge and experience document review and approval of those charges. District Response - The District is in the process of reviewing and updating controls to ensure required time and effort logs are kept in the District's fiscal management system and routine submission of forms is enforced by the grant managers.
Finding - Contrary to Federal regulations, District records did not always accurately reflect employee work performed for, and support the distribution of employee salaries and benefits charged to, the SEC. Criteria - Title 2, Section 200.430(i), CFR, requires that charges for Federal awards for salaries be based on records that accurately reflect the work performed and support the distribution of employee salaries among specific activities or cost objectives if the employee works on more than one Federal award or a Federal award and non-Federal award. In addition, Title 2, Section 200.303(a), CFR, requires the District to maintain effective internal controls over the SEC. To ensure that charges are allowable, an appropriate system of internal controls requires that review and approval of program or grant expenditures be performed by personnel (e.g., the Exceptional Student Education Director) who possess adequate knowledge and experience of program requirements. Condition - For the 2023-24 fiscal year the District reported SEC expenditures totaling $1.8 million, including $1.5 million for salaries and benefits for 83 employees. To determine the propriety and allowability of SEC expenditures, we requested for examination District records supporting salaries and benefits totaling $628,953 charged to the SEC for 16 employees. Although we requested, District records were not provided to identify the work that the 16 employees performed to support the salaries and benefits charged to the SEC. Cause - The District did not always maintain records to identify the work employees performed to support the salaries and benefits charged to the SEC, and an employee with knowledge and experience of the SEC requirements was not required to, and did not, document review and approval of the salary and benefit charges. Effect - Absent effective procedures to document support for the distribution of employee salaries and benefits to the SEC, including the documented review and approval of those charges by the Exceptional Student Education Director or other personnel with knowledge and experience of SEC requirements, there is an increased risk that expenditures may be inappropriately charged to the SEC. We expanded our procedures to interview the 16 employees and determined that their salaries and benefits were appropriately charged to the SEC. However, our procedures cannot substitute the District’s responsibility to ensure that salaries and benefits charged to the SEC are properly supported. Recommendation - The District should establish procedures to ensure that District records accurately reflect the work performed to support the distribution of employee salaries and benefits charged to the SEC. Such procedures should require that the Exceptional Student Education Director or other personnel with appropriate knowledge and experience document review and approval of those charges. District Response - The District is in the process of reviewing and updating controls to ensure required time and effort logs are kept in the District's fiscal management system and routine submission of forms is enforced by the grant managers.