Finding Text
MATERIAL WEAKNESSES
2024-001 – Special Tests and Provisions – Wage Rate Requirements
Federal Program Information:
Department of Education:
Passed through the State of Maine Agency of Education
ALN – 84.425 – Education Stabilization Fund
Criteria: The following CFR applies to this finding: 29 CFR 5.5
Condition: During audit procedures, it was identified that the District did not include the
prevailing wage rate language in the contract provisions for construction contracts and
did not obtain copies of certified payrolls at time of payment.
Cause: The District does not have the necessary internal controls over compliance.
Effect: Contracts are not executed in compliance with the requirement above.
Identification of Questioned Costs: None
Context: We reviewed a sample of 2 contracts for construction and renovation projects
out of a total population of 3. It was determined that the contracts did not include the
prevailing wage rate language and that the contractor did have timely submission of the
certified payrolls to the District. This is a not statistically valid sample.
Repeat Finding: This is a repeat finding of 2022-001 and 2023-001
Recommendation: It is recommended that the District implement internal control
processes and procedures to ensure that they are following the criteria above.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective
Action Plan issued by the RSU 84/MSAD 14.