Finding 1170768 (2025-002)

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 to 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 nonexistent. Effect: There is a noncompliance and a 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 in place that require contractors performing contract work valued at more than $2,000 and paid with federal funds 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 the separate document for planned corrective actions.