Finding 1214829 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-05-18
Audit: 401552
Organization: School District of Cudahy (WI)

AI Summary

  • Core Issue: The District lacks documentation to prove construction contracts comply with Davis-Bacon prevailing wage requirements.
  • Impacted Requirements: Contracts over $2,000 for remodeling or construction must meet prevailing wage standards as per the Davis-Bacon Act.
  • Recommended Follow-Up: Implement a process to obtain and store documentation centrally, and develop a checklist to ensure compliance before and during projects.

Finding Text

Condition: The District could not provide documentation to attest the construction contracts met Davis- Bacon prevailing wage requirements. Criteria: As required by the Davis Bacon Act, auditees are required for any minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet prevailing wage requirements. Cause: The District does not have a process in place to track which contracts meet the Davis-Bacon prevailing wage requirements and ensure proper documentation is obtained. Effect: The District is at risk of jeopardizing the continued funding provided by the federal agencies. Recommendation: It is recommended that the District implement procedures to ensure documentation related to the use of federal funds are properly obtained, stored centrally and can be located timely. Corrective Action Plan: The District will strengthen its procedures when attestation of prevailing wages is required. The District will also develop a checklist to verify that all Davis-Bacon requirements are met prior to contract execution and throughout the life of each project. The District is committed to strengthening its controls and ensuring full compliance with Davis-Bacon prevailing wage requirements going forward.

Corrective Action Plan

Condition: The District could not provide documentation to attest the construction contracts met Davis- Bacon prevailing wage requirements. Plan: The District will implement procedures to ensure documentation related to the use of federal funds are properly obtained, stored centrally and can be located timely. Anticipated Date of Completion: June 30, 2026 Name of Contact Person: Heather Steffes, Contracted Accountant Management Response: The District will strengthen its procedures when attestation of prevailing wages is required. The District will also develop a checklist to verify that all Davis-Bacon requirements are met prior to contract execution and throughout the life of each project. The District is committed to strengthening its controls and ensuring full compliance with Davis-Bacon prevailing wage requirements going forward.

Categories

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Other Findings in this Audit

  • 1214827 2025-001
    Material Weakness Repeat
  • 1214828 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $598,390
93.778 GRANTS TO STATES FOR MEDICAID $560,852
84.027 SPECIAL EDUCATION GRANTS TO STATES $461,439
10.553 SCHOOL BREAKFAST PROGRAM $382,996
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $94,699
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $81,384
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $47,792
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $36,355
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $31,500
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $27,772
10.555 NATIONAL SCHOOL LUNCH PROGRAM $19,942
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $19,735
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $19,551
84.425 EDUCATION STABILIZATION FUND $10,000