Audit 369478

Criteria: 2 C.F.R. § 200.326 and 2 C.F.R. Part 200, Appendix II require specific provisions and clauses to be included in non-federal entity contracts when utilizing federal funds to reimburse expenditures. Additionally, Louisiana Revised Statute (L.R.S.) 38:2224 requires that affidavit(s) be completed attesting that the public contract was not secured through employment or payment of solicitor public funds. Condition: The School Board’s contract for the Federal Emergency Management Agency (FEMA) - disaster #1603 alternate project PW 11249, did not include the provisions and clauses required for non-federal entity contracts. Additionally, affidavit(s) was not completed attesting that the public contract was not secured through employment or payment of solicitor public funds. Cause: The School Board did not include the required provisions and clauses or ensure the affidavits were properly completed. Effect: The School Board did not meet all federal compliance requirements for federally funded contracts. Additionally, the School Board was not in compliance with L.R.S. 38:2224 requiring completed affidavit(s) for public works contracts. Recommendation: The School Board should develop and implement procedures to ensure federally funded contracts include all required provisions and clauses. Additionally, the School Board should include in those federally funded contract procedures requirements that appropriate affidavits as required by L.R.S. 38:2224 be completed.