Criteria: Under the Uniform Guidance, nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Condition: During our review of the federal program, we determined that the District lacks internal controls and therefore, cannot detect whether the District receives the required documentation for Davis-Bacon prevailing wage requirements on a timely basis. Cause: The District does not have sufficient detection and prevention procedures. Effect: Without proper internal controls, the District cannot prevent or detect instances of Davis-Bacon prevailing wage requirements noncompliance. Lack of internal controls may result in questioned costs and noncompliance with the terms of the grant. Questioned Costs: $0 Recommendation: We recommend the District adhere to the Uniform Guidance and establish internal controls to ensure the District obtains the required documentation for the Davis- Bacon prevailing wage requirements on a timely basis. Management’s views: Management agrees with the finding. See corrective action plan on page 147.
Special Tests – Wage Rate Requirements Federal Program: Education Stabilization Fund (ALN 84.425D & 84.425U) Federal Agency: U.S. Department of Education Federal Award Year: 2022-2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Under the Uniform Guidance, nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Condition: During our review of the federal program, we determined that the District lacks internal controls and therefore, cannot detect whether the District receives the required documentation for Davis-Bacon prevailing wage requirements on a timely manner. Cause: The District does not have sufficient detection and prevention procedures. Effect: Without proper controls, the District cannot prevent or detect instances of Davis- Bacon prevailing wage requirements noncompliance. Lack of internal controls may result in questioned costs and noncompliance with the terms of the grant. Questioned Costs: $0 Recommendation: We recommend the District adhere to the Uniform Guidance and establish internal controls to ensure the District obtains the required documentation for the Davis- Bacon prevailing wage requirements on a timely basis. Management’s views Management agrees with the finding. See corrective action plan on page 88.
Special Tests – Wage Rate Requirements Federal Program: Education Stabilization Fund (ALN 84.425D & 84.425U) Federal Agency: U.S. Department of Education Federal Award Year: 2022-2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Under the Uniform Guidance, nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Condition: During our review of the federal program, we determined that the District lacks internal controls and therefore, cannot detect whether the District receives the required documentation for Davis-Bacon prevailing wage requirements on a timely manner. Cause: The District does not have sufficient detection and prevention procedures. Effect: Without proper controls, the District cannot prevent or detect instances of Davis- Bacon prevailing wage requirements noncompliance. Lack of internal controls may result in questioned costs and noncompliance with the terms of the grant. Questioned Costs: $0 Recommendation: We recommend the District adhere to the Uniform Guidance and establish internal controls to ensure the District obtains the required documentation for the Davis- Bacon prevailing wage requirements on a timely basis. Management’s views Management agrees with the finding. See corrective action plan on page 88.
Special Tests – Wage Rate Requirements Federal Program: Education Stabilization Fund (ALN 84.425D & 84.425U) Federal Agency: U.S. Department of Education Federal Award Year: 2022-2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Under the Uniform Guidance, nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Condition: During our review of the federal program, we determined that the District lacks internal controls and therefore, cannot detect whether the District receives the required documentation for Davis-Bacon prevailing wage requirements on a timely manner. Cause: The District does not have sufficient detection and prevention procedures. Effect: Without proper controls, the District cannot prevent or detect instances of Davis- Bacon prevailing wage requirements noncompliance. Lack of internal controls may result in questioned costs and noncompliance with the terms of the grant. Questioned Costs: $0 Recommendation: We recommend the District adhere to the Uniform Guidance and establish internal controls to ensure the District obtains the required documentation for the Davis- Bacon prevailing wage requirements on a timely basis. Management’s views Management agrees with the finding. See corrective action plan on page 88.
Special Tests – Wage Rate Requirements Federal Program: Education Stabilization Fund (ALN 84.425D & 84.425U) Federal Agency: U.S. Department of Education Federal Award Year: 2022-2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Under the Uniform Guidance, nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Condition: During our review of the federal program, we determined that the District lacks internal controls and therefore, cannot detect whether the District receives the required documentation for Davis-Bacon prevailing wage requirements on a timely manner. Cause: The District does not have sufficient detection and prevention procedures. Effect: Without proper controls, the District cannot prevent or detect instances of Davis- Bacon prevailing wage requirements noncompliance. Lack of internal controls may result in questioned costs and noncompliance with the terms of the grant. Questioned Costs: $0 Recommendation: We recommend the District adhere to the Uniform Guidance and establish internal controls to ensure the District obtains the required documentation for the Davis- Bacon prevailing wage requirements on a timely basis. Management’s views Management agrees with the finding. See corrective action plan on page 88.
FINDING 2023-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that required compliance with the provisions of the Davis-Bacon Act was put into place. However, the School did not obtain certified payrolls from the contractor for each week that work was performed under the contract. Criteria The 2023 Compliance Supplement states: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 23.
FINDING 2023-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that required compliance with the provisions of the Davis-Bacon Act was put into place. However, the School did not obtain certified payrolls from the contractor for each week that work was performed under the contract. Criteria The 2023 Compliance Supplement states: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 23.
FINDING 2023-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that required compliance with the provisions of the Davis-Bacon Act was put into place. However, the School did not obtain certified payrolls from the contractor for each week that work was performed under the contract. Criteria The 2023 Compliance Supplement states: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 23.
FINDING 2023-001 DAVIS-BACON COMPLIANCE SIGNIFICANT DEFICIENCY Federal Program: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W Condition The School entered into an agreement with a contractor for building renovations, paid with funds from the Education Stabilization Fund. A formal contract that required compliance with the provisions of the Davis-Bacon Act was put into place. However, the School did not obtain certified payrolls from the contractor for each week that work was performed under the contract. Criteria The 2023 Compliance Supplement states: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Cause The School was not aware of the requirement outlined in the Criteria section above. Effect The School is unable to document that the contractor is compliant with the Davis-Bacon Act. Recommendation We recommend the School develop internal controls to ensure that certified payrolls are obtained for each week that work is performed under qualifying construction or sub-construction contracts. Views of Responsible Officials and Planned Corrective Actions The School’s Corrective Action Plan is included on page 23.
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.
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.
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.
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.
Program: Education Stabilization Fund COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) 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 the District’s construction contract that was 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 until after the construction contract was completed. 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. 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 the processes and internal controls related to construction contracts and have implemented changes to ensure that the Wage Rate Requirements are adhered to when applicable.
Federal Agency: Department of the Treasury, Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds, Substance Abuse and Mental Health Services Projects of Regional and National Significance Listing Number: 21.027, 93.243 Federal Award Identification Number and Year: H79TI080926, 2023 Pass-Through Agency: City of Hartford, Career Resources Inc. Pass-Through Number: C2212 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None Context: We reviewed the procurement policy and conflict of interest policy of the Organization and noted that the policies do not include the essential compliance elements as outlined in 2 CFR sections 200.318 through 200.326. Cause: Management was unaware of the restrictive requirements of the new procurement standards. Effect: With the absence of a compliant policy, the Organization is at risk for noncompliance as it relates to federal procurement. Repeat Finding: No Recommendation: We recommend that the Organization review its procurement policy and conflict of interest policy and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of the Treasury, Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds, Substance Abuse and Mental Health Services Projects of Regional and National Significance Listing Number: 21.027, 93.243 Federal Award Identification Number and Year: H79TI080926, 2023 Pass-Through Agency: City of Hartford, Career Resources Inc. Pass-Through Number: C2212 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None Context: We reviewed the procurement policy and conflict of interest policy of the Organization and noted that the policies do not include the essential compliance elements as outlined in 2 CFR sections 200.318 through 200.326. Cause: Management was unaware of the restrictive requirements of the new procurement standards. Effect: With the absence of a compliant policy, the Organization is at risk for noncompliance as it relates to federal procurement. Repeat Finding: No Recommendation: We recommend that the Organization review its procurement policy and conflict of interest policy and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: Department of the Treasury, Department of Health and Human Services Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds, Substance Abuse and Mental Health Services Projects of Regional and National Significance Listing Number: 21.027, 93.243 Federal Award Identification Number and Year: H79TI080926, 2023 Pass-Through Agency: City of Hartford, Career Resources Inc. Pass-Through Number: C2212 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Condition: The procurement policy and conflict of interest policy of the Organization do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None Context: We reviewed the procurement policy and conflict of interest policy of the Organization and noted that the policies do not include the essential compliance elements as outlined in 2 CFR sections 200.318 through 200.326. Cause: Management was unaware of the restrictive requirements of the new procurement standards. Effect: With the absence of a compliant policy, the Organization is at risk for noncompliance as it relates to federal procurement. Repeat Finding: No Recommendation: We recommend that the Organization review its procurement policy and conflict of interest policy and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: There is no disagreement with the audit finding.
Department of Education COVID-19 Higher Education Emergency Relief Fund (HEERF) – Assistance Listing #84.425E, #84.425F #2023-002 – Major Federal Award Finding – Procurement and Suspension and Debarment Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2022-002. Conditions: We noted during testing of procurement for the HEERF program (Institutional Aid) that the University’s procurement policy was not being followed. Competitive bids were not obtained for projects over the simplified acquisition threshold. Criteria: Federal regulations 2 CFR Section 200.317- 200.326 provide that the University must have and use documented procurement procedures and follow written standards that promote full and open vendor competition. Methods included in written standards covering the acquisition of property or services under a Federal award or sub-award must be consistent with specific thresholds as set forth in CFR 200.320. There are five allowable procurement methods described in §200.320, depending upon the dollar value of the purchase or contract. Cause/Context: We tested two transactions over the micro purchase threshold. These transactions were subject to the procurement processes required by the Uniform Guidance as it relates to price quotations. We tested two transactions for a vendor over the simplified acquisition threshold. These transactions were not subject to the procurement processes required by the Uniform Guidance as it relates to price quotations and/or competitive bids. Recommendation: Management should review the University’s procurement policy and update appropriately to reference Uniform Guidance and specific purchasing thresholds. The University should ensure that it follows the requirements outlined in its procurement policy in accordance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The University agrees with the recommendations put forth by the auditors. The University will review its current procurement policy to include federal regulations 2 CFR Section 200.317-200.326. Proper oversight will be provided over the procurement process. See also attached Corrective Action Plan.
Department of Education COVID-19 Higher Education Emergency Relief Fund (HEERF) – Assistance Listing #84.425E, #84.425F #2023-002 – Major Federal Award Finding – Procurement and Suspension and Debarment Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2022-002. Conditions: We noted during testing of procurement for the HEERF program (Institutional Aid) that the University’s procurement policy was not being followed. Competitive bids were not obtained for projects over the simplified acquisition threshold. Criteria: Federal regulations 2 CFR Section 200.317- 200.326 provide that the University must have and use documented procurement procedures and follow written standards that promote full and open vendor competition. Methods included in written standards covering the acquisition of property or services under a Federal award or sub-award must be consistent with specific thresholds as set forth in CFR 200.320. There are five allowable procurement methods described in §200.320, depending upon the dollar value of the purchase or contract. Cause/Context: We tested two transactions over the micro purchase threshold. These transactions were subject to the procurement processes required by the Uniform Guidance as it relates to price quotations. We tested two transactions for a vendor over the simplified acquisition threshold. These transactions were not subject to the procurement processes required by the Uniform Guidance as it relates to price quotations and/or competitive bids. Recommendation: Management should review the University’s procurement policy and update appropriately to reference Uniform Guidance and specific purchasing thresholds. The University should ensure that it follows the requirements outlined in its procurement policy in accordance with the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The University agrees with the recommendations put forth by the auditors. The University will review its current procurement policy to include federal regulations 2 CFR Section 200.317-200.326. Proper oversight will be provided over the procurement process. See also attached Corrective Action Plan.
Finding 2023-003 Material weakness in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Federal Agency: United States Department of State Program Titles: Office of Global Women’s Issues Assistance Listing Number: 19.801 Pass-Through Entity: N/A Award Numbers: SLMAQM21CA3275 Award Periods: September 30, 2021 through September 30, 2025 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. A nonfederal entity among others must: - Use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis-Bacon Act)). Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro-purchases may be awarded without soliciting competitive quotations if the non-federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). - For acquisitions exceeding the simplified acquisition threshold, the non-federal entity must use one of the following procurement methods: the sealed bid method if the acquisition meets the criteria in 2 CFR section 200.320(b); the competitive proposals method under the conditions specified in 2 CFR section 200.320((b) (2); or the noncompetitive proposals method (i.e., solicit a proposal from only one source) but only when one or more of four circumstances are met, in accordance with 2 CFR section 200.320(c)). Condition/Context Although the Organization has a procurement policy, and the procedures include the use of a micro purchase threshold of $3,500, small purchases and simplified acquisition thresholds are not clearly identified. As such, the policy does not fully incorporate the procurement standards of the Uniform Guidance including sealed bids, cost or price analysis etc. Cause The Organization's management was not aware that all components including procurement methods of 2 CFR section 200.320 are required to be included in the Organization's procurement policy even if the Organization's procurements would not typically include all procurement methods. Effect The Organization did not ensure that its procurement policy follows the procurement standards set out at 2 CFR Part 200. Questioned Costs Not determinable. Repeat Finding No. Recommendation We recommend the Organization implement measures to ensure that its procurement policy reflect applicable state and local laws and regulations and conform to applicable federal statutes and requirements in 2 CFR Part 200. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Federal Agency: Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027/84.173 Pass-Through Agency: State of Connecticut Department of Education Pass-Through Number(s): 12060-SDE64370-20977/20983 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency of Internal Control over Compliance Criteria or Specific Requirement: The BOE must comply with procurement standards set out at 2 CFR sections 200.318 through 200.326 within Uniform Guidance. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The BOE procurement standards did not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned Costs: None noted. Context: Although the BOE did not have a policy in conformity with the federal uniform guidance criteria, the BOE did follow Uniform Guidance and was in compliance with the major program. Cause: The policy has not been updated to be in compliance with uniform guidance requirements. Effect: The lack of controls over reporting could result in errors of reported data. Repeat Finding: No Recommendation: We recommend that the BOE review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of Responsible Officials: Management agrees with the auditors’ recommendations.
Program: Education Stabilization Fund COVID-19 American Rescue Plan - Elementary and Secondary School Emergency Relief (84.425U) 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 the District’s construction contract that was 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 until after the construction contract was completed. 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. 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 the processes and internal controls related to construction contracts and have implemented changes to ensure that the Wage Rate Requirements are adhered to when applicable.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
Federal Agency: All Federal Agencies Federal Program Name: All Federal Programs Assistance Listing Number: All Assistance Listing Numbers Federal Award Identification Number and Year: N/A – applies to all Federal Programs Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters (Noncompliance) Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requires compliance with the provisions of procurement, suspension, and debarment. Condition: The City’s procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Questioned costs: None noted. Context: Although the City did not have a policy in place in conformity with the federal uniform guidance criteria, the City did follow its procedures as they relate to the contracts under the procurements applicable to the City’s major program. Cause: The City did not have the resources necessary to implement a conforming policy during the fiscal year under audit. Effect: With the absence of a compliant policy, the City is at risk for noncompliance as it relates to federal procurement. Repeat Finding: Yes, repeat of finding 2022-001. Recommendation: We recommend that the City review its formal procurement policies and make necessary changes to comply with the criteria as set out in 2 CFR sections 200.318 and 200.326. Views of responsible officials: Management agrees with this finding.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. 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 (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-009 Wage Rate Compliance CFDA Title: ESSER II Base CFDA Number: 84.425D Federal Award Number: 011-0206-92-2021 Federal Agency: U.S. Department of Education Pass-through Entity: Montana Office of Public Instruction Condition: The District did not comply with the wage rate compliance related to the construction and plumbing of the JES pump house project expenditures paid from ESSER monies. Context: During the testing of significant claims for the Education Stabilization Fund major program, we noted a couple claims in which the wage rate requirements would apply. 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 (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for 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) (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). Effect: Noncompliance with the Wage Rate requirement. Cause: The District was not aware of the requirement. Recommendation: The District should implement internal controls to determine the federal compliance requirements of all federal funds received. In addition, procedures should be implemented to ensure any federal funds received in which the Wage Rate Requirement is required the following are implemented: 1. any construction vendor is by contract which includes the Prevailing Wage clauses for the contractors and subcontractors. 2. the weekly certified payrolls are submitted.
2023-001 Federal Program Name: COVID-19 Higher Education Emergency Relief Fund (HEERF) - COVID-19 HEERF Minority Serving Institutions (MSIs) Federal Assistance Listing Number: 84.425L Award Year: July 6, 2020 – June 30, 2023 Condition: The University's procurement policy does not contain adequate documentation to demonstrate compliance with federal procurement regulations (Deficiency). Questioned Costs: None. Context: The University's documented procurement policies do not contain all the specific requirements of 2 CFR sections 200.318 through 200.326. Effect: The risks exist that the University could follow their procurement policy and procure an item with federal funds, which would not meet the federal procurement regulations. Cause: The writing of the policy did not take into account the federal procurement regulations which are required to be incorporated for items procured with federal funds. Repeat Finding: No. Recommendation: We recommend that the University revise procurement policies to incorporate all required elements of the federal procurement regulations. Views of Responsible Officials and Planned Corrective Action: The University agrees with the comment and will revise procurement policies and incorporate all required elements of the federal procurement regulations.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 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 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 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 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 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 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
Statement of Condition: Four of the ten current year ESSER construction contracts did not include the Wage Rate Requirement (Davis-Bacon Act) notification to the contractors. Criteria: 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 require the following for construction contracts in excess of $2,000 financed by federal assistance funds. - Construction contracts shall include a provision that contractors or subcontractors comply with the provisions of the Wage Rate Requirements (Davis-Bacon Act). - These provsions include a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of certified payroll. Cause of Condition: District employees involved in the construction contract writing overlooked this requirement on four construction contracts. Effect of condition: Four of the ten construction contracts financed by the ESSER probram originated during 2023 did not include the Wage Rate Requirements provision. However, weekly certified payroll was receibed by the District from contractos and theri subcontractors in accordance with the Davis-Bacon Act. Context: All ten applicable contracts were reviewed. This finding was present in four contracts. Recommendation: To ensure that all construction contracts in excess of $2,000 that are financed by federal assisstance funds include the required Wage Rate REquirements provision, additional training in ESSER requirements should be provided for employees involved in the construction contract writing process. Further, a review process should be put in place for too such contracts written in order to ensure that they comploy with all the requirements within the Compliance Supplement.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.
2023-005 – Procurement, Suspension & Debarment – Significant Deficiency in Internal Controls over Compliance Department of Education Federal Assistance Listing Number: 84.031 Federal Program Name: Higher Education Institutional Aid Federal Award Number: P031S210057, P031S170020, P031C210038 Award Year: 2022-23, 2021-22 Federal Assistance Listing Number: 84.425E, 84.425F Federal Program Name: Higher Education Emergency Relief Funds (HEERF) Institutional Portion, Federal Award Number: P425F201298 Award Year: 2022-23 Criteria – Non-federal entities, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided the policies and procedures conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition/context – A sample of 4 expenditures greater than the micropurchase threshold of $10,000 but less than the simplified acquisition threshold of $250,000 were selected from the 20 transactions that exceeded the micropurchase threshold of $10,000. For all four of the expenditures the University did not obtain the required rate quotations; per the University’s documented policy two quotes should have been obtained or have documentation supporting their conclusion to sole source the purchases. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – The personnel completing purchases on behalf of the University were unaware of the internal procurement policies that are in conformance with federal statutes and 2 CFR Part 200. The lack of obtaining the required rate quotations increases the risk that the price paid was not competitive when compared to the market and that the transaction may not have been in a manner providing full and open competition. The lack of a documented standard of conduct that covers conflict of interest increases the risk that an actual or perceived conflict could occur. Repeat finding – Yes, 2022-006 Recommendation – We recommend the University implement controls to ensure all employees making federal purchases on behalf of the University are aware of the University’s documented procurement policy that is in accordance with 2 CFR Part 200. In addition, we recommend the University document its standard of conduct that covers conflicts of interest and governs the performance of its employees engaged in the selection, award, and administration of contracts. Views of responsible officials and planned corrective actions – The University puts measures in place to guarantee that every employee who makes federal purchases on the University's behalf is aware of the documented procurement policy that complies with 2 CFR Part 200. The University will formalize its code of conduct, which addresses conflicts of interest and sets performance standards for staff members who choose, award, and manage contracts.