Audit 979

CRITERIA: Uniform guidance requires that quotes be acquired for expenditures more than $5,000. If the purchase is determined to be an emergency, then the purchase must be approved by the school board. CONDITION: The federal program paid $9,000 for the repair of a walk-in cooler. Management did not acquire additional quotes or declare the matter an emergency purchase with school board approval. CAUSE: Per inquiry of management of the school district, it was their intentions for the matter to be declared an emergency purchase. However, the procedures necessary for that option were not implemented. EFFECT: The effect of this condition could result in noncompliance with the federal procurement requirements. QUESTIONED COSTS: None. PERSPECTIVE: This matter is limited to one transaction and is considered an isolated incident. RECOMMENDATION: It is recommended that management exercise caution and due diligence when subjecting federal expenditures to the federal procurement requirements to ensure compliance with those requirements. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee’s Corrective Action Plan

CRITERIA: All laborers and mechanics employed by the contractors or subcontractors that work on construction contracts in excess of $2,000 which are financed with federal funds must be paid wages not less than the prevailing wages established by the Department of Labor. The school district must include in the construction contracts that are subject to the Wage Rate Requirements (the Davis-Bacon Act) a provision that the contractor or subcontractor 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). CONDITION: Upon testing a transaction for $22,500 for the purchase of a heating and air conditioning system which was paid for with federal funds, it was noted that the contractor did not submit the required copy of the weekly payroll records for the construction period nor did the contractor submit the required payroll certification. CAUSE: The school district did not fully understand its responsibilities outlined in the Davis-Bacon labor requirements. EFFECT: The effect is that certain provisions of the Davis-Bacon labor requirements were not met. QUESTIONED COSTS: None. PERSPECTIVE: This matter is limited to one transaction and is considered an isolated incident. RECOMMENDATION: The school district should familiarize itself with the requirements of the Davis-Bacon Labor Act and make sure that all requirements are understood and also implement procedures to ensure compliance with the DOL requirements. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee’s Corrective Action Plan

CRITERIA: Uniform guidance requires that quotes be acquired for expenditures more than $5,000. If the purchase is determined to be an emergency, then the purchase must be approved by the school board. CONDITION: The federal program paid $9,000 for the repair of a walk-in cooler. Management did not acquire additional quotes or declare the matter an emergency purchase with school board approval. CAUSE: Per inquiry of management of the school district, it was their intentions for the matter to be declared an emergency purchase. However, the procedures necessary for that option were not implemented. EFFECT: The effect of this condition could result in noncompliance with the federal procurement requirements. QUESTIONED COSTS: None. PERSPECTIVE: This matter is limited to one transaction and is considered an isolated incident. RECOMMENDATION: It is recommended that management exercise caution and due diligence when subjecting federal expenditures to the federal procurement requirements to ensure compliance with those requirements. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee’s Corrective Action Plan

CRITERIA: All laborers and mechanics employed by the contractors or subcontractors that work on construction contracts in excess of $2,000 which are financed with federal funds must be paid wages not less than the prevailing wages established by the Department of Labor. The school district must include in the construction contracts that are subject to the Wage Rate Requirements (the Davis-Bacon Act) a provision that the contractor or subcontractor 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). CONDITION: Upon testing a transaction for $22,500 for the purchase of a heating and air conditioning system which was paid for with federal funds, it was noted that the contractor did not submit the required copy of the weekly payroll records for the construction period nor did the contractor submit the required payroll certification. CAUSE: The school district did not fully understand its responsibilities outlined in the Davis-Bacon labor requirements. EFFECT: The effect is that certain provisions of the Davis-Bacon labor requirements were not met. QUESTIONED COSTS: None. PERSPECTIVE: This matter is limited to one transaction and is considered an isolated incident. RECOMMENDATION: The school district should familiarize itself with the requirements of the Davis-Bacon Labor Act and make sure that all requirements are understood and also implement procedures to ensure compliance with the DOL requirements. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee’s Corrective Action Plan