Finding 1095315 (2024-001)

Special Tests and Provisions – Wage Rate Requirements – Material Weakness ALN 84.425 – Education Stabilization Fund: Subprogram: ALN 84.425U COVID-19 ARP Elementary and Secondary School Emergency Relief Fund (ARP ESSER) Condition and Criteria: In accordance with 29 CFR sections 5.5 and 5.6, contractors and subcontractors are required to submit to the School District, weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). During our audit of wage rate requirements, we noted the entity lacked a process to ensure certified payrolls that were required were in fact submitted, resulting in missing certified payroll submissions. Effect: Failing to receive and review certified payrolls could result in contractors and subcontractors being non-compliant with wage rate requirements. Cause: The School District lacked procedures to ensure its contractors and subcontractors were submitting weekly certified payrolls for each week work was performed. Recommendation: We recommend the School District implement procedures to track contractor and subcontractor work and subsequent submission of required certified payroll documentation. Views of Responsible Officials: See the School District’s Corrective Action Plan