Audit 7783

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or 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)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.