Finding 1094443 (2024-002)

SIGNIFICANT DEFICENCY Internal Controls and Compliance Criteria: Nonfederal entities shall include in their construction contracts subject to the Wage rate requirements, a requirement for the contractor to submit the nonfederal entity weekly, for each week in which any contract is performed, a copy of the payroll and a statement of compliance as required by 2 CFR sections 5.5 and 5.6 Condition: Tatro Plumbing, Inc. did not submit weekly, for each week in which their contract work was performed, a copy of their payroll and a statement of compliance with the Wage Rate Requirements. Cause: The controls related to payroll paid under the Wage Rate Requirements are non-existent. Effect: There is a noncompliance and lack of internal control related to Wage Rate Requirements for construction contracts greater than $2,000 for the Education Stabilization Fund. Recommendations: The District should put controls into place that will require contractors, performing contract work greater than $2,000 and paid with federal monies, to submit the required payroll reports, per the Wage Rate Requirements, throughout the contract work. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.