FAC Explorer

Finding 20772 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-10-01
Audit: 26763
Organization: Pelham City Board of Education (AL)
Auditor: Carr Riggs & Ingram LLC

AI Summary

  • Core Issue: The Board did not comply with federal wage rate requirements for $308,391 in construction costs related to federally funded projects.
  • Impacted Requirements: 2 CFR 200.303 and 29 CFR Part 5 mandate proper wage rates and certified payroll submissions for federally funded construction contracts.
  • Recommended Follow-up: Management should ensure all future federally funded projects notify contractors about wage requirements before bidding.

Finding Text

2022-002: Federal Wage Rate Requirements Federal agency: U.S. Department of Education Pass-through agency: Alabama Department of Education Title: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425 U Award Year: 2022 Award Number: 15-9100352 Criteria: 2 CFR 200.303 requires the Board to establish and maintain internal controls over compliance with federal awards. The Department of Labor states that all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project. 29 CFR Part 5 identifies the requirements for nonfederal entities to include in their construction contracts provisions that the contractor or subcontractor comply with these wage rate requirements including submission of weekly certified payrolls for each week in which construction is performed. Condition and perspective: The Board recorded $308,391 of construction costs for two projects to the federal award without following wage rate requirements under 29 CFR Part 5. Cause: The Architect firm used by the Board for administration of construction projects was not notified by the Board that two projects were funded by federal grants. Effect: The Board posted $308,391 of construction costs to the federal award without following federal wage rate requirements. Questioned Cost: $308,391. Recommendation: Management should ensure the Board follows federal wage rate requirements for all construction projects with federal funding. Management?s response: Management will notify architect of any future projects that are federally funded prior to bid.

Corrective Action Plan

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2022 The Pelham City Board of Education submits the following corrective action plan for the year ended September 30, 2022: FINDINGS ? FINANCIAL STATEMENT AUDIT AND SINGLE AUDIT: Audit Finding Reference 2022-001 Material Audit Adjustments Corrective Action Plan All employees responsible for processing invoices in the various departments as well as Finance Department personnel have been cautioned to maintain vigilance in the handling, entering and proper posting and review and approval of invoices. Person Responsible New CSFO, Lauren Butts Completion Date The Board has hired a new CSFO who started in May of 2023 and has since implemented the corrective action plan. Audit Finding Reference 2022-002 Federal Wage Rate Requirements Corrective Action Plan The Superintendent and CSFO will review all construction projects and notify the hired architectural firm in writing of intent to pay for the project with federal funds. The CSFO will review invoices for construction and ensure that payroll certifications are obtained for federally funded projects. Person Responsible New CSFO, Lauren Butts Completion Date The Board has hired a new CSFO who started in May of 2023 and has since implemented the corrective action plan.

Categories

Questioned Costs Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 20773 2022-002
    Material Weakness
  • 20774 2022-002
    Material Weakness
  • 20775 2022-002
    Material Weakness
  • 20776 2022-002
    Material Weakness
  • 20777 2022-002
    Material Weakness
  • 597214 2022-002
    Material Weakness
  • 597215 2022-002
    Material Weakness
  • 597216 2022-002
    Material Weakness
  • 597217 2022-002
    Material Weakness
  • 597218 2022-002
    Material Weakness
  • 597219 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19- Education Stabilization Fund $1.14M
10.553 School Breakfast Program $384,610
84.010 Title I Grants to Local Educational Agencies $325,492
84.027 Special Education_grants to States $224,400
16.710 Public Safety Partnership and Community Policing Grants $163,223
10.555 National School Lunch Program $154,018
84.027 Covid-19- Special Education_grants to States $88,689
84.367 Improving Teacher Quality State Grants $86,452
10.558 Child and Adult Care Food Program $82,776
10.555 Covid-19- National School Lunch Program $76,458
84.365 English Language Acquisition State Grants $49,885
84.048 Career and Technical Education -- Basic Grants to States $31,715
84.424 Student Support and Academic Enrichment Program $25,678
84.173 Special Education_preschool Grants $15,480
10.560 State Administrative Expenses for Child Nutrition $7,013
84.173 Covid-19- Special Education_preschool Grants $2,442
96.001 Social Security_disability Insurance $360