Corrective Action Plans

Finding 38691 (2022-002)

Significant Deficiency 2022

NM

Procurement, Suspension & Debarment Cash Management Internal Control / Segregation of Duties

It is management?s policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates a...

It is management?s policy to update and distribute travel reimbursement forms with new mileage and per diem rates the first of each calendar year, and at any other time the rates may change. Federal per diem and travel rates will be verified on a monthly basis to ensure that the most current rates are being used.

View Audit 46638

Finding 38597 (2022-002)

Material Weakness 2022

Nisqually Land Trust

WA

Procurement, Suspension & Debarment Cash Management

2022-002 GRANT ACCOUNTING ? A monthly procedure for reconciling and reviewing all accounting functions with assigned deadlines will be implemented. o This will include reconciling and reviewing all acquisition transactions for the current period as well as the current fiscal period. o All recent an...

2022-002 GRANT ACCOUNTING ? A monthly procedure for reconciling and reviewing all accounting functions with assigned deadlines will be implemented. o This will include reconciling and reviewing all acquisition transactions for the current period as well as the current fiscal period. o All recent and open transactions will be looked at individually as well as at the programs in total to ensure completeness of recording and correct classification. ? On-going training will be provided for all staff. o Feedback from the monthly procedure for reconciling and reviewing all accounting functions will be given monthly to the appropriate staff to ensure processes are being followed.

View Audit 31354

Finding 38596 (2022-001)

Material Weakness 2022

Nisqually Land Trust

WA

Procurement, Suspension & Debarment Cash Management Reporting

The Nisqually Land Trust agrees with the findings reported and will take corrective actions to rectify the findings. All of the below actions will be in place by October 20, 2023. 2022-001 GRANT ACCOUNTING The financial operating procedures will be revised to reflect an improved level of internal ...

The Nisqually Land Trust agrees with the findings reported and will take corrective actions to rectify the findings. All of the below actions will be in place by October 20, 2023. 2022-001 GRANT ACCOUNTING The financial operating procedures will be revised to reflect an improved level of internal controls and procedures in the finance department, including the following: o Implementation of a monthly procedure for reconciling and reviewing all accounting functions and reporting. o Executive level leadership has been given access to review reports within the accounting software. Notes and reports from monthly review between the Finance and Operations Manager, bookkeeper, and program directors will be provided to the Executive Director for review monthly. o The Finance and Operations Manager position description will be updated to make clear that they have a responsibility to ensure all processes are being followed & to identify training gaps. Monthly self-monitoring is part of the Finance and Operations Manager duties to oversee or delegate as needed. The purpose of the self-monitoring is to spot check various aspects of accounting tasks to ensure processes are being followed and training is provided immediately. ? Reporting on grant activities will be updated and standardized for all programs and for the Nisqually Land Trust in its entirety. This will allow Nisqually Land Trust?s finance processes to be more transparent to program directors and the Board. ? Training plans are being improved and implemented for all finance positions as well as identifying necessary training for program management. o A training plan for each finance position will be developed and initiated in the current year. It will be evaluated annually and updated to stay current with training needs. o The training plans and progress are monitored by the Finance and Operations Manager and the Executive Director. o Nisqually Land Trust will continue to prioritize budgeting for training of fiscal staff

View Audit 31354

Finding 38579 (2022-001)

None 2022

Mt. Zion Housing Authority of Hammond, INC 073 11344 Dba Pleasant View

IN

Questioned Costs HUD Housing Programs Cash Management

CORRECTIVE ACTION PLAN Auditee: Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View HUD Project Number: 073-11344-REFI Audit Firm: MCM CPAs & Advisors LLP Audit Period Ended December 31, 2022 Corrective Action Plan Prepared by: Name: Kathleen Taylor Position: Accounting Manager Telephone...

CORRECTIVE ACTION PLAN Auditee: Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View HUD Project Number: 073-11344-REFI Audit Firm: MCM CPAs & Advisors LLP Audit Period Ended December 31, 2022 Corrective Action Plan Prepared by: Name: Kathleen Taylor Position: Accounting Manager Telephone Number: (317) 921-1950 A. Current Findings on the Schedule of Findings and Questioned Costs Finding No. 2022-01 A. Comments on the Finding and Each Recommendation: We agree with the finding that the required residual receipts deposit was not made timely. B. Action Taken or Planned on the Finding: Management made the required residual receipt deposit on March 31, 2023. Respectfully submitted, Kathleen Taylor Accounting Manager Triangle Associates, Inc.

View Audit 35325 Questioned Costs: $1

Finding 38563 (2022-001)

None 2022

118 East 111th Street Corporation

NY

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

118 East 111th Street Corporation 290 Lenox, 3rd Floor New York, NY 10027 AUDITEE?S CORRECTIVE ACTION PLAN Name and Number of Project 118 East 111th Street Corporation, FHA Project Number 012-HD010 Auditor/Audit Firm PKF O?Connor Davies LLP Audit Period June 30, 2022 Finding 2022-001 ? Timely ...

118 East 111th Street Corporation 290 Lenox, 3rd Floor New York, NY 10027 AUDITEE?S CORRECTIVE ACTION PLAN Name and Number of Project 118 East 111th Street Corporation, FHA Project Number 012-HD010 Auditor/Audit Firm PKF O?Connor Davies LLP Audit Period June 30, 2022 Finding 2022-001 ? Timely Deposit of Surplus Cash A. Comments on Finding and Recommendations Recommendation ? We recommend that management ensures the surplus cash deposit is done timely in the future. B. Actions Taken or Planned Auditee agrees with this finding. Our policy has been to make surplus cash deposits after the final audit has been issued. Going forward our focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft. C. Status of Corrective Action on Prior Findings No prior findings. Ezra Miller, CFO

View Audit 32759

Finding 38528 (2022-027)

Significant Deficiency 2022

State of Vermont

VT

Reporting Cash Management Significant Deficiency § 200.302 § 200.303

Corrective Action Plan: We will be implementing a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deput...

Corrective Action Plan: We will be implementing a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deputy CFO will perform a reconciliation at least two times a year, with the first reconciliation being done before the end of FY 2023. We are currently using the new form and plan to be doing our draws in compliance with CMIA by 4/1/2023. We are also keeping all the backup for the draw electronically to allow for the review to be done more easily. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.cousino@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: April 1st, 2023

View Audit 30446

Finding 38490 (2022-007)

Material Weakness 2022

Osborne County Memorial Hospital

KS

Questioned Costs Allowable Costs / Cost Principles Cash Management

Condition During the process of identifying expenses eligible under the COVID-19 Testing and Mitigation for Rural Health Clinics program, management did not reduce certain costs by estimated cost-based reimbursement to be received from Medicare. Views of responsible officials and planned corrective...

Condition During the process of identifying expenses eligible under the COVID-19 Testing and Mitigation for Rural Health Clinics program, management did not reduce certain costs by estimated cost-based reimbursement to be received from Medicare. Views of responsible officials and planned corrective actions Management will continue to refine processes to ensure only allowable costs are reported.

View Audit 36422 Questioned Costs: $1

Finding 38488 (2022-005)

Material Weakness 2022

Osborne County Memorial Hospital

KS

Questioned Costs Allowable Costs / Cost Principles Cash Management

Condition During the process of identifying expenses incurred to prevent, prepare for or respond to the coronavirus pandemic, management did not reduce certain costs by estimated cost-based reimbursement to be received from Medicare and included certain cost items reimbursed through the COVID-19 Tes...

Condition During the process of identifying expenses incurred to prevent, prepare for or respond to the coronavirus pandemic, management did not reduce certain costs by estimated cost-based reimbursement to be received from Medicare and included certain cost items reimbursed through the COVID-19 Testing and Mitigation for Rural Health Clinics program (Federal Assistance Listing Number 93.697). Views of responsible officials and planned corrective actions Management will continue to refine processes to ensure only allowable costs are reported. Additionally, we have other costs in our cost tracking workbook we believe are allowable and sufficient to cover the $264,243 of questioned costs. We had intended to report these in the unreimbursed expenses section of the PRF reporting portal but inadvertently missed inputting them. Anticipated completion date Ongoing

View Audit 36422 Questioned Costs: $1

Finding 38475 (2022-003)

Significant Deficiency 2022

McKendree University

IL

Allowable Costs / Cost Principles Cash Management Reporting § 200.303

2022-003 Education Stabilization Fund: Higher Education Emergency Relief Fund Student Portion and Institutional Portion? Assistance Listing No. 84.425E, 84.425F Recommendation: We recommend the University design controls to ensure an adequate review and approval process is in place and documented. E...

2022-003 Education Stabilization Fund: Higher Education Emergency Relief Fund Student Portion and Institutional Portion? Assistance Listing No. 84.425E, 84.425F Recommendation: We recommend the University design controls to ensure an adequate review and approval process is in place and documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The University will design and implement internal procedures with staff (accountant, interim VP, and president) to ensure adequate review and controls are in place. Name(s) of the contact person(s) responsible for corrective action: John Nisbet, Interim Vice President of Administration & Finance Planned completion date for corrective action plan: April 2023

View Audit 30596

Finding 38459 (2022-001)

Significant Deficiency 2022

Shiloh Neighborhood Development Corporation

OH

Cash Management Reporting Significant Deficiency

U.S. Department of Agriculture Connecting Kids to Meals (the Organization) respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit period: October 1, 2021 ? September 30, 2022 The finding from the schedule of findings and questioned costs are discussed ...

U.S. Department of Agriculture Connecting Kids to Meals (the Organization) respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit period: October 1, 2021 ? September 30, 2022 The finding from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Agriculture SIGNIFICANT DEFICIENCY 2022-001 Child and Adult Care Food Program ? Assistance Listing No. 10.558 Recommendation: To help reduce the potential for errors and maximize the amount of reimbursement we recommend that the daily tracking spreadsheet be reviewed by management. Explanation of disagreement with audit finding: While there is no strenuous disagreement with the audit finding, the Responsible Officials want to note that the under reporting of 5 meals out of 4,711 tested during the CACFP Afterschool Meal Program is less than .106% error rate. In total 630,906 meals were served to kids during the fiscal year. To reduce the potential for human data input errors, Connecting Kids To Meals has entered into a contract with a software developer to create customized software that will enable CKM servers to more accurately capture meal totals electronically. The software will begin being utilized the fall of 2023. This will enhance the effectiveness of the nonprofit hunger-relief agency. Action planned/taken in response to finding: The Organization has engaged an external software designer to develop a new software program that will aide in better tracking meals at the various sites. This is also expected to reduce errors in the excel spreadsheet the Organization is currently utilizing. Name of the contact person responsible for corrective action: Wendi Huntley, President Planned completion date for corrective action plan: September 30, 2023 If the U.S. Department of Agriculture has questions regarding this plan, please call Wendi Huntley, President at 419-720-1106.

View Audit 34881

Finding 38410 (2022-001)

Material Weakness 2022

St. Patrick Apartments Ii, Inc.

MD

Questioned Costs HUD Housing Programs Cash Management

A. Finding 2022-001 a. Comments on Findings and Recommendations 2022-001: Management has made the required residual receipts deposit based upon December 31, 2021, surplus cash in the amount of $12,564 on June 30, 2022.

View Audit 33862 Questioned Costs: $1

Finding 38381 (2022-001)

None 2022

Snyder Independent School District

TX

Cash Management Equipment & Real Property Management

The District will review all current equipment and other needs of the lunchroom program as well as review the current amounts charged students for meals in order to reduce the excess lunchroom cash balances in the Child Nutrition Program.

View Audit 30650

Finding 38348 (2022-001)

Material Weakness 2022

New York Blood Center, Inc.

NY

Cash Management Material Weakness Matching / Level of Effort / Earmarking § 200.303

Diabetes, Digestive, and Kidney Diseases Extramural Research (ALN 93.847) Mental Health Research Grants (ALN 93.839) Blood Diseases and Resources Research (ALN 93.242) Allergy and Infectious Diseases Research (ALN 93.855) Recommendation: We recommend that the Organization review their approval polic...

Diabetes, Digestive, and Kidney Diseases Extramural Research (ALN 93.847) Mental Health Research Grants (ALN 93.839) Blood Diseases and Resources Research (ALN 93.242) Allergy and Infectious Diseases Research (ALN 93.855) Recommendation: We recommend that the Organization review their approval policy around cash management and ensure review is performed before drawdowns and that evidence of this review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have implemented the use of a preparer and reviewer for all drawdowns and added a cumulative review to the procedure. Additionally, we have moved from a quarterly to a bimonthly drawdown cycle. Name(s) of the contact person(s) responsible for corrective action: Mahtab Khan Planned completion date for corrective action plan: August 31,2022

View Audit 35886

Finding 38340 (2022-001)

Significant Deficiency 2022

Tarrant County

TX

Subrecipient Monitoring Cash Management Reporting

Finding 2022-001: Reporting - Significant Deficiency in Controls over compliance and Noncompliance Federal/State Program: Highway Planning & Construction - Courtesy Patrol Program ALN 20.205 Year: 2022 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Texas Department of Transp...

Finding 2022-001: Reporting - Significant Deficiency in Controls over compliance and Noncompliance Federal/State Program: Highway Planning & Construction - Courtesy Patrol Program ALN 20.205 Year: 2022 Federal Agency: U.S. Department of Transportation Pass-Through Entity: Texas Department of Transportation (Award 02-0XXFS00l) Responsible Party-Juanita Casas, Grant Manager Tarrant County Auditor's Office Corrective Action Plan - The department agrees with the findings of the single audit and has implemented training and additional oversight of the financial reporting process. This process allows the Grant Manager and Supervisors to monitor and track the completion of monthly reports and ensure timely submission per the grant requirements. Effective Date - Immediately

View Audit 32528

Finding 38317 (2022-001)

Significant Deficiency 2022

True North Rochester Preparatory Charter School

NY

Cash Management HUD Housing Programs Reporting

Responsible Official?s Response: Rochester Prep is implementing procedures to ensure accurate and timely submission of federal nutrition claims. Specifically: To ensure claims for reimbursement are accurately consolidated, the Charter School will evaluate their point of service accountability system...

Responsible Official?s Response: Rochester Prep is implementing procedures to ensure accurate and timely submission of federal nutrition claims. Specifically: To ensure claims for reimbursement are accurately consolidated, the Charter School will evaluate their point of service accountability system and implement appropriate changes. The Charter School will also conduct edit checks to ensure accountability. Effective July 20, 2022, the school implemented a Meal Counting and Claiming Implementation Plan with the purpose of submitting accurate meal claims to the state and federal child nutrition programs. This implementation plan seeks to eliminate discrepancies between meal counting at the homeroom level, reporting at the school level, and claiming at the state and federal levels.

View Audit 30193

Finding 38281 (2022-003)

Material Weakness 2022

Independent School District No. 32

MN

Cash Management Reporting School Nutrition Programs

Contact Person ? Mark Lundin, Superintendent. Corrective Action Plan ? The District will review polices and procedures for submitting meal counts for reimbursement. Completion Date ? September 1, 2022.

View Audit 35659

Finding 38251 (2022-001)

Significant Deficiency 2022

Barton County, Kansas

KS

Allowable Costs / Cost Principles Cash Management

Federal program Coronavirus State and Local Fiscal Recovery Funds ? 21.027 Compliance requirements Activities allowed or unallowed, allowable costs/cost principles Recommendation We recommend the County review its controls to ensure that mistakes made during the calculation of expenditures for fe...

Federal program Coronavirus State and Local Fiscal Recovery Funds ? 21.027 Compliance requirements Activities allowed or unallowed, allowable costs/cost principles Recommendation We recommend the County review its controls to ensure that mistakes made during the calculation of expenditures for federal program reimbursement are caught and corrected in a timely manner. Comments on the Finding Recommendation With the complicated nature of the calculation of some of these federal expenditures, and the lack of reliable automation from our accounting system, minor mistakes were made in the calculation of some payroll related expenditures. Action Taken The County will make sure that any manually calculated payroll expenditures agree with the numbers processed through the accounting system. Additionally, the payroll clerk will double check the calculations to catch any errors the preparer may have missed. This will be implemented as of 8/3/2023.

View Audit 36640

Finding 38236 (2022-004)

Significant Deficiency 2022

Pcc Community Wellness Center

IL

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring

PCC will comply with all provisions of Notices of Awards for capital and all other grants awards by reading and signing off on the grant award provisions. In addition, specifically for all federal capital awards, the Development and Finance Departments will discuss the draw in advance with the HRSA ...

PCC will comply with all provisions of Notices of Awards for capital and all other grants awards by reading and signing off on the grant award provisions. In addition, specifically for all federal capital awards, the Development and Finance Departments will discuss the draw in advance with the HRSA Program Officer and HRSA Capital Program Officer prior to the actual drawdown of the award for their concurrence and approval.

View Audit 31234

Finding 38219 (2022-001)

Significant Deficiency 2022

Cook County Board of Education

GA

Questioned Costs Cash Management Subrecipient Monitoring § 200.302 § 200.303 § 200.305

Cook County BOE FA 2022-001 Improve Controls over Cash Management Compliance Requirement: Cash Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of E...

Cook County BOE FA 2022-001 Improve Controls over Cash Management Compliance Requirement: Cash Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D210012 (Year: 2021) S425U2120012 (Year: 2021) Questioner Costs: $195,559 Description: The School District made cash drawdowns in excess of the immediate cash needs of the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: In order to prevent drawdowns from being mixed up between two federal grants, an additional financial staff member will sign off on the drawdowns. Estimated Completion Date: August 1, 2023 Contact Person: Jackie Sparks, Finance Director Telephone: (229)-896-2294 Email: jsparks@cook.k12.ga.us

View Audit 37553 Questioned Costs: $1

Finding 38217 (2022-001)

Significant Deficiency 2022

Housing Authority of Lake City

SC

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

2022-001 ALN 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation ...

2022-001 ALN 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2023

View Audit 35961 Questioned Costs: $1

Finding 38195 (2022-002)

Material Weakness 2022

The Harry and Jeanette Weinberg Terrace, Inc.

MD

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Finding 2022-002 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Residual Receipts deposit was not made timely due to a turnover in staff. Management has trained all accounting staff on this process and the Contr...

Finding 2022-002 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Residual Receipts deposit was not made timely due to a turnover in staff. Management has trained all accounting staff on this process and the Controller has implemented tracking procedures to insure timely deposits.

View Audit 32236

Finding 38149 (2022-001)

Significant Deficiency 2022

Springfield Housing Authority

TN

Cash Management HUD Housing Programs

This was an error. Will remember the 3-day window so it does not happen again.Anticipated Completion Date: April 6, 2023 Contact Person: Brandi Claborn Chief Financial Officer 808 Rose Hill Cr. Springfield, TN 37172

View Audit 29784

Finding 38126 (2022-006)

None 2022

Gratz College

PA

Cash Management

Finding 2022-006 Corrective Action Plan The College acknowledges withdrawing all remaining funds from the appropriate awarding agency before the expiration date of December 31, 2021. However, it should be noted that the disbursement of these funds drawn was in anticipation of settling an invoice for...

Finding 2022-006 Corrective Action Plan The College acknowledges withdrawing all remaining funds from the appropriate awarding agency before the expiration date of December 31, 2021. However, it should be noted that the disbursement of these funds drawn was in anticipation of settling an invoice for an allowable expense within three calendar days of the draw. However, because of unforeseen delays on the part of the vendor, the invoice was settled outside of this timeframe. It should be further noted that all funds drawn are kept in a non-interest bearing bank account separate from the College?s normal operating account (from which all vendor invoices are paid) until the funds are disbursed. Upon disbursement, the funds are then transferred to the College?s operating account. To ensure that disbursements of federal awards are made within the allowed timeframe, the College?s management will have received an invoice for an allowable expenditure before withdrawing federal funds to settle that invoice. Anticipated Completion Date The College anticipates completion of this corrective action on or before August 31, 2023. Names of Contact People Responsible for Corrective Action Thomas R. Cipriano, Jr. ? Manager of Business Operations and Facilities Ross Holgado ? Manager of Financial Reporting

View Audit 36033

Finding 38125 (2022-005)

Significant Deficiency 2022

Gratz College

PA

Cash Management Procurement, Suspension & Debarment Significant Deficiency

Finding 2022-005 Corrective Action Plan To ensure that disbursements of Federal awards are made within the allowed timeframe, the Manager of Business Operations and Facilities and the Manager of Financial Reporting will review the program requirements of each award and document these disbursement re...

Finding 2022-005 Corrective Action Plan To ensure that disbursements of Federal awards are made within the allowed timeframe, the Manager of Business Operations and Facilities and the Manager of Financial Reporting will review the program requirements of each award and document these disbursement requirements on the College?s reconciliation of grant funds expended prior to drawing down funds. Dates will be added to the College?s reconciliation of grant funds to indicate the last day when funds must be disbursed. Any remaining funds after this date will be returned to the granting agency. Anticipated Completion Date The College anticipates completion of this corrective action on or before August 31, 2023. Names of Contact People Responsible for Corrective Action Thomas R. Cipriano, Jr. ? Manager of Business Operations and Facilities Ross Holgado ? Manager of Financial Reporting

View Audit 36033

Finding 38102 (2022-002)

Material Weakness 2022

Boscobel Area School District

WI

Questioned Costs Procurement, Suspension & Debarment Cash Management

Finding #2022-002 ? #84.425D COVID-19 Education Stabilization Fund ? ESSER II and III Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the project totaled $170,924.50. There was not a prevailing wage clause in the contract ...

Finding #2022-002 ? #84.425D COVID-19 Education Stabilization Fund ? ESSER II and III Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the project totaled $170,924.50. There was not a prevailing wage clause in the contract and certified payrolls were received. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Questioned Costs: $170,924.50. Context: The construction projects began and were completed in June 2022 before the District was aware of wage rate requirements. After becoming aware of the requirement, there were no further construction projects. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Consider determining if the contractor performing the project in 2021-2022 paid prevailing wage rates for costs reimbursed by the grant. Response: The District became aware of wage rate requirements after finishing the project. Before bidding any future construction project more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received for any such contracts. Anticipated Completion: June 30, 2023

View Audit 35345 Questioned Costs: $1

Corrective Action Plans

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