Finding Number: 2022-001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Contact Person: Dr. Derek Etheridge Anticipated Completion Date: December 15, 2022 Planned Corrective Action: Recommendation: The District should review Federal requirements over Davis Bacon. Planned Corrective Action: Members of the Cartwright School District Federal Programs Department and members of the Cartwright School District Business Services Department will attend training on the Education Department General Administrative Regulations (EDGAR), specifically as it relates to the use of Federal funds for the purpose of construction, including Davis Bacon. This training will be conducted by Brustein & Manasevit, Arizona Department of Education, or another expert in EDGAR policies and procedures. Recommendation: The District should develop policies and procedures [around Davis Bacon] and ensure those developed policies and procedures are implemented. Planned Corrective Action: In general, Federal funds will not be used for construction projects in the district, as construction is generally not allowed using Federal funding sources. However, in the rare event that Federal funds are used for construction projects, the following policies/procedures will be implemented: ? Before the school district enters into a contract for a construction project, the Director of Federal Programs will ensure the project is allowable under the appropriate Federal grant and will submit required documentation to request prior approval from the Arizona Department of Education. The District will not proceed with the planned construction project until the Arizona Department of Education provides approval. ? All construction contracts in which Federal funds will be used will contain language requiring prevailing wages. ? All construction contracts in which Federal funds will be used will contain language requiring the contractor and/or subcontractor to submit certified payroll records weekly to the Cartwright School District Director of Business Services. ? The Cartwright School District Director of Business Services will review the certified payroll records weekly to ensure prevailing wages are being paid by the contractor and/or subcontractor. Recommendation: The District should review the chart of accounts and ensure grant budget and expenditure amounts are recorded as prescribed in the chart of accounts. Planned Corrective Action: Members of the Cartwright School District Business Services Department will attend training on the Uniform System of Financial Records (USFR), specifically the section regarding the chart of accounts. This training will be conducted by Heinfeld & Meech, Arizona Association of School Business Officials, or another expert in the Uniform System of Financial Records? chart of accounts. The Director of Business Services will then present the information to all District administrators, including those in the Federal Programs Department. All requisitions will follow multiple approvals to provide the opportunity to review the account codes for accuracy. At a minimum, when utilizing Federal funds, approvals will include an administrator in Cartwright School District?s Federal Programs Department, the Cartwright School District Purchasing Department, and an administrator in Cartwright School District?s Business Services Department.