Audit 382546

Compliance over Major Federal Program Compliance Requirement: Equipment and Real Property Management Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance Section 200.313 states assets acquired with Federal funds shall be maintained accurately and shall include a description of the asset, identification number, source of funding, acquisition date, cost, location, condition of the asset, and date the information was reported. A physical inventory of all federal funded assets shall be taken and the results reconciled with equipment records at least one every two years. Any differences between quantities determined by physical inspection and accounting records shall be investigated to determine cause. The existence, current utilization, and continued need shall be verified. Condition: The District did not provide a completed and updated asset inventory accounting report. Cause: The District did not complete and update the inventory report. Effect: Federally funded assets could be inaccurately captured in the inventory records and not discovered and corrected. Missappropriation of assets could occur and not be detected. Improper disposition of assets could occur. Questioned Costs: None noted. Recommendation: The District should complete a physical inventory of all federally funded assets. Asset inventory report should be completed and updated. The District should provide training to ensure the appropraiate personnel have an understanding of OMB Uniform Guidance requirements specific to asset inventory. Management Views: Management views and Corrective Action Plan are included at the end of this report.

Compliance over Major Federal Programs Compliance Requirement: Wage Rate Requirements Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance Compliance Supplement Section 4-20.001 requires all laborers and mechanics employed by contractors or subcontractors who 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 by the Department of Labor. Condition: The District did not acquire certified payroll reports from contractors for the building roofing project. The District did not verify Wage Rate Requirement compliance. Cause: The District did not require contractors to prepare and provide certified payroll reports to ensure compliance with wage rates for the locality. Effect: The District could be held liable by contractor employees for any wage amounts paid that were less than the prevailing wage rate for the locality. Question Cost: Unknown Recommendation: The District should request and retain certified payroll reports from conatrctors for the roofing project. The District should determine if the previaling wage rate was paid to the contractor employees. The District should consult legal counsel if underpayments are discovered. Managements Views: Managements views and Corrective Action Plan are included at the end of this report.

Internal Control over Major Federal Program Compliance Internal Control: Equipment and Real Property Management Compliance Program: Education Stabliization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the District to establish and maintain effective internal controls to ensure compliance with asset management. Condition: Federally funded asset acquisitions were not properly recorded, identified, and reported in an inventory system. Cause: The District did not implement procedures ti inventory, record and monitor federally funded asset acquisitions. Recommendation: The District should review its policies and procedures for asset inventory management. The District should ensure policies require asset inventory management comply with Equipment and Real Property Management compliance requirements. The District should provide training to personnel assigned to the inventory procedures. The District should implement specific inventory procedures to ensure compliance with the requirements. Management Views: Management's views and Corrective Action Plan are included at the end of this report.

Internal Control over Major Federal Program Compliance Internal Control: Wage Rate Requirements Compliance Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the District to establish and maintain effective internal controls to ensure compliance with Wage Rate Requirements. Condition: Certified payroll reports were not obtained from contractors working on the federally funded roof project. Verification of Wage Rate Compliance was not performed. Cause: The District did not have policies and procedures for monitoring and verifying Wage Rate Requirements complaince. Recommendation: The District should review the policies and procedures for Wage Rate Requirements for federally funded projects. The District should ensure policies require contracts on federally funded projects stipulate previaling wage payments to contractor employees as a requirement. The District should adopt policies requiring certified payroll reports be provided by contractors to the District. The District should implement procedures to verify contractor prevailing wage compliance. Management's Views: Management's views and Corrective Action Plan are included at the end of this report.