Finding Text
2022-004 Special Tests ? Wage Rate Requirement Material Noncompliance and Material Weakness in Internal Control over Compliance Federal program information: See Schedule of Findings and Questioned Costs for chart/table. Federal Agency and Pass-Through Entity CFDA Number Program Title Contract Number Award Year Department of Education Passed through the Minnesota Department of Education 84.425 COVID-19 Education Stabilization Fund 0786-01-000 FIN 155, 160 2022 Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, it was identified that the District did not satisfy the requirements of 2 CFR 656.40 through 2 CFR 656.41. The District did not ensure proper inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? 2 out of 3 contracts were selected for testing. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.