Finding 1150559 (2024-002)

Having sound internal controls in place over the disbursement process is pertinent to a properly functioning control environment. Although the School District ultimately provided certified payrolls from contractors, we noted that the School District was unable to provide documentation that all certified payrolls selected for testing had been received and reviewed prior to making payments to contractors. Without proper controls over wage rate requirements, there is an increased risk that the School District and its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. We recommend that the School District implement additional procedures to ensure prevailing wage documentation provided by contractors is reviewed prior to making payments to contractors and that indication of the review of the certified payroll reports are maintained.