Finding Text
MATERIAL WEAKNESSES 2024-001 - Special Tests and Provisions - Wage Rate Requirement Federal Program Information: Department of Education ALN 84.425 – Elementary and Secondary School Emergency Relief Criteria: The following CFRs apply to this finding: 2 CFR Appendix II to Part 200; 29 CFR 5.2; 29 CFR 5.5 Condition: During audit procedures, it was identified that the School had construction projects in excess of $2,000 and did not have contracts with the required clauses for these projects. Additionally, it was identified that the School did not obtain copies of the required certified payrolls and accompanying Statement of Compliance. Cause: The School did not appropriately identify construction projects expensed to the grant and therefore does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with federal Wage Rate Requirements Identification of Questioned Costs: Payments for the identified construction projects totalled $46,653.19 all of which was performed without contracts containing the required clauses. Related certified payrolls and accompanying Statement of Compliance were not obtained for any of the payments sampled. Context: Two construction projects were identified by auditors in the sample of expenses reviewed for the grant, none of which had contracts with the required clauses. There were $46,653.19 in payments made for these construction projects, which did not have the related certified payrolls and accompanying Statement of Compliance. This was not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School familiarize themselves with federal Wage Rate Requirements and 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 Limestone Community School.