Finding 10230 (2023-002)

Internal Control over Major Federal Program Compliance Internal Control: Wage Rate Requirements Compliance Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the District to establish and maintain internal controls to ensure compliance with Wage Rate Requirements. Condition: Certified payroll reports were not obtained from contractors working on the federally funded HVAC project. Questioned Cost: Unknown Cause: The District did not have policies and procedures for verifying and monitoring Wage Rate Requirements compliance. Recommendation: The District should review the policies and procedures for Wage Rate Requirements for federally funded projects. The District should ensure policies require contracts on federally funded projects stipulate prevailing wage payments to employees as a requirement. The District should implement policies requiring certified payroll reports be provided by contractors to the District. The District should implement procedures to verify contractor compliance with Wage Rate Requirements. Management's Views: Management's Views and Corrective Action Plan are included at the end of this report.