Finding 1019359 (2022-008)

Material Weakness in Internal Control Over Compliance and Material Instance of Noncompliance2022-008 Department of EducationFederal Financial Assistance Listing/CFDA Number 84.425Education Stabilization FundSpecial Tests and ProvisionsCriteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standardsnonfederal entities other than states must follow when operating federal programs.Condition ? In our testing of Special Tests and Provisions, it was identified that the School didnot satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The School did not ensureproper inclusion of prevailing wage rate clauses were included in a construction contract andalso did not obtain proper support to ensure required certified payrolls were submitted.Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements underUniform Guidance and applicable CFR sections, and controls were not adequately designed toensure compliance with all of these requirements.Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance.Questioned Costs ? None reportedContext/Sampling ? All contracts were selected for testing.Repeat Finding from Prior Years ? No.Recommendation ? We recommend that management establish controls to follow all applicablerequirements under Uniform Guidance and applicable CFR sections.View of responsible officials ? There is no disagreement with the finding.