FAC Explorer

Audit 6311

FY End
2023-06-30
Total Expended
$105.90M
Findings
8
Programs
27
Organization: Granite School District (UT)
Year: 2023 Accepted: 2023-12-12
Auditor: Squire & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4000 2023-001 Material Weakness - N
4001 2023-001 Material Weakness - N
4002 2023-001 Material Weakness - N
4003 2023-001 Material Weakness - N
580442 2023-001 Material Weakness - N
580443 2023-001 Material Weakness - N
580444 2023-001 Material Weakness - N
580445 2023-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $17.27M Yes 0
84.010 Title I Grants to Local Educational Agencies $15.32M - 0
84.027 Special Education_grants to States $9.68M - 0
93.778 Medical Assistance Program $6.86M Yes 0
10.553 School Breakfast Program $3.70M Yes 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.73M - 0
84.367 Improving Teacher Quality State Grants $1.72M - 0
84.365 English Language Acquisition State Grants $1.13M - 0
84.048 Career and Technical Education -- Basic Grants to States $1.05M - 0
84.424 Student Support and Academic Enrichment Program $1.04M - 0
84.173 Special Education_preschool Grants $570,930 - 0
93.327 Demonstration Grants for Domestic Victims of Severe Forms of Human Trafficking $382,677 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $346,311 - 0
10.582 Fresh Fruit and Vegetable Program $278,553 Yes 0
84.002 Adult Education - Basic Grants to States $222,128 - 0
32.009 Emergency Connectivity Fund Program $203,280 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $175,701 - 0
84.425 Education Stabilization Fund $165,583 Yes 1
84.060 Indian Education_grants to Local Educational Agencies $108,770 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $56,716 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $42,673 - 0
45.310 Grants to States $36,546 - 0
84.196 Education for Homeless Children and Youth $35,833 - 0
21.019 Coronavirus Relief Fund $16,483 - 0
10.558 Child and Adult Care Food Program $11,072 - 0
10.665 Schools and Roads - Grants to States $9,675 - 0
84.323 Special Education - State Personnel Development $2,604 - 0

Contacts

Name Title Type
S4E4NYA7BYB6 Chris Lewis Auditee
3856464200 Matthew Geddes Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS FOR PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Donated food commodities are recorded at acquisition value in the District’s school lunch fund as an inventory asset and federal revenue when received totaling $2,256,945 for the year ended June 30, 2023. Donated food commodity inventories are recorded as expenditures in the school lunch fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Granite School District (the District) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the District.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Donated food commodities are recorded at acquisition value in the District’s school lunch fund as an inventory asset and federal revenue when received totaling $2,256,945 for the year ended June 30, 2023. Donated food commodity inventories are recorded as expenditures in the school lunch fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Donated food commodities are recorded at acquisition value in the District’s school lunch fund as an inventory asset and federal revenue when received totaling $2,256,945 for the year ended June 30, 2023. Donated food commodity inventories are recorded as expenditures in the school lunch fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received.
Title: NOTE C - RELATIONSHIP TO DISTRICT'S FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Donated food commodities are recorded at acquisition value in the District’s school lunch fund as an inventory asset and federal revenue when received totaling $2,256,945 for the year ended June 30, 2023. Donated food commodity inventories are recorded as expenditures in the school lunch fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal awards expended on the Schedule for the year ended June 30, 2023 are reconciled to the amounts reported in the District’s financial statements as federal government revenues as follows:
Title: NOTE D - SUBRECIPIENTS OF FEDERAL AWARDS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting as described in Note 1 to the District’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Donated food commodities are recorded at acquisition value in the District’s school lunch fund as an inventory asset and federal revenue when received totaling $2,256,945 for the year ended June 30, 2023. Donated food commodity inventories are recorded as expenditures in the school lunch fund when they are consumed by the schools; for purposes of the Schedule, donated food commodities are also recorded as expenditures when received. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District did not pay any federal funds to subrecipients during the year ended June 30, 2023.

Finding Details

Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.
Finding 2023-001
Program: Education Stabilization Fund Governor's Emergency Education Relief Fund (84.425C) Elementary and Secondary School Emergency Relief Fund (84.425D) American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) American Rescue Plan - Emergency and Secondary School Emergency Relieft - Homeless Children and Youth (84.425W) Criteria: All laborers and mechanics employed by contractors or subcontractors to 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 (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor of subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215 Appendix A, Contract Provisions; 2 CFR Part 176 Subpart C; and 2 CFR section 200.326). Context and Condition: We reviewed a sample the District’s construction contracts that were financed by the Education Stabilization Fund during the year ended June 30, 2023 and performed testing over internal controls and compliance as related to the Wage Rate Requirements as outlined in the criteria above. Cause: The District did not have processes or controls established to ensure certified payrolls for each week in which contract work was performed were obtained from the contractor or subcontractor for construction contracts financed by the Education Stabilization Fund. Effect: A potential failure to pay laborers and mechanics employed by contractors or subcontractors prevailing wage rates as required by the Wage Rate Requirements exists. A failure to collect the certified payrolls for each week in which contract work was performed. Questioned Costs: No costs were questionable. Repeat Finding: No Statistically valid: Yes Recommendation: We recommend management of the District review processes related to construction projects subject to the Wage Rate Requirements and establish appropriate internal controls to ensure all wage rate requirements are met. Views of responsible officials: Management of the District has reviewed, updated and trained staff on the processes and internal controls related to construction contracts to ensure compliance with the Wage Rate Requirements as published in 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction when applicable.