Finding 1169562 (2023-004)

Internal Control over Major Federal Program Compliance Internal Control: Wage Rate Requirements Compliance Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance requires the District to establish and maintain effective internal controls to ensure compliance with Wage Rate Requirements. Condition: Certified payroll reports were not obtained from contractors working on the federally funded roof project. Verification of Wage Rate Compliance was not performed. Cause: The District did not have policies and procedures for monitoring and verifying Wage Rate Requirements complaince. Recommendation: The District should review the policies and procedures for Wage Rate Requirements for federally funded projects. The District should ensure policies require contracts on federally funded projects stipulate previaling wage payments to contractor employees as a requirement. The District should adopt policies requiring certified payroll reports be provided by contractors to the District. The District should implement procedures to verify contractor prevailing wage compliance. Management's Views: Management's views and Corrective Action Plan are included at the end of this report.