Finding 1092291 (2024-003)

2024-003 FINDING Federal Program COVID-19 Education Stabilization Funds (AL 84.425D, 84.425U) Special Tests – Wage Rate Requirements Criteria A system of internal controls requires the review of certified payrolls to ensure contractors are paying their employees at the required federal rates. Condition Inquired of the District regarding reviews of the submitted certified payrolls to ensure the rates are paid according to federal pay rates. We noted the District did not review the certified payrolls received. Questioned Costs None Context The District is not reviewing the submitted certified payrolls to ensure contractors are paying their employees at the correct federal wage rates on construction projects that are funded with federal dollars. Cause Oversight by management. Effect The District has an increased risk of not being in compliance with federal wage rate requirements. Repeat Finding Yes, see prior year finding 2023-004. Recommendation The District should implement policies and procedures to ensure all certified payrolls are reviewed to ensure wages are paid according to federal wage rates. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will review its procedures.