FAC Explorer

Finding 30408 (2022-004)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-05
Audit: 24376
Organization: Henderson County, Tennessee (TN)
Auditor: Comptroller of the Treasury Division of Local Government Audit

AI Summary

  • Core Issue: The finance department failed to document compliance with the Davis-Bacon Act for federally funded tennis court construction.
  • Impacted Requirements: Federal regulations mandate that contractors pay prevailing wages for construction contracts over $2,000 funded by federal money.
  • Recommended Follow-Up: Improve management oversight to ensure compliance documentation is maintained for all federally funded projects.

Finding Text

The finance department did not document its compliance with the Davis-Bacon Act for the construction of tennis courts that were funded by a federal Education Stabilization Grant (FAL No. 84.425D). Expenditures for the tennis courts were reimbursed with federal grant funds totaling $464,498 during the year ended June 30, 2022. Federal regulations require contractors and subcontractors to pay prevailing wages on any construction contract that exceeds $2,000 and is financed either wholly or partially by federal funds. As a result of the failure to document its compliance with the Davis-Bacon Act, we were unable to determine whether contractors paid their employees prevailing wage rates for this project. This finding was a result of a lack of management oversight.

Corrective Action Plan

Management plans to contract with an accouting firm that has experience in managing federal education grant funds for the purposes of providing grant administrative services including compliance with the Davis-Bacon Act.

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $2.27M
84.425 Covid 19 - Education Stabilization Fund (esser - Arp) $1.67M
84.010 Title I Grants to Local Educational Agencies $908,811
10.553 School Breakfast Program $842,354
84.027 Special Education_grants to States $752,715
84.425 Covid 19 - Education Stabilization Fund (esser Ii) $726,994
84.002 Adult Education - Basic Grants to States $476,120
14.239 Home Investment Partnerships Program $203,684
10.555 National School Lunch Program (commodities - Noncash Assistance) $173,727
84.367 Improving Teacher Quality State Grants $144,945
84.425 Covid 19 - Education Stabilization Fund (esser 1) $139,722
84.424 Student Support and Academic Enrichment Program $89,014
93.558 Covid 19 - Temporary Assistance for Needy Families $87,013
84.048 Career and Technical Education -- Basic Grants to States $79,290
84.358 Rural Education $78,687
84.027 Covid 19 - Special Education_grants to States (arp) $75,445
10.559 Summer Food Service Program for Children $56,574
97.042 Emergency Management Performance Grants $30,187
84.173 Special Education_preschool Grants $26,077
16.034 Covid 19 - Coronavirus Emergency Supplemental Funding Program $14,953
20.600 State and Community Highway Safety $12,500
10.555 National School Lunch Program (commodity Storage Rebate) $5,308
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,740
10.649 Covid 19 - Pandemic Ebt Administrative Costs $3,063
84.173 Covid 19 - Special Education_preschool Grants (arp) $1,190