Finding 32357 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-05-25

AI Summary

  • Core Issue: A construction project funded by the Education Stabilization Fund did not include a prevailing wage clause, leading to non-compliance with wage rate requirements.
  • Impacted Requirements: The project failed to adhere to Department of Labor regulations, which mandate certified payroll submissions for contracts over $2,000.
  • Recommended Follow-Up: Implement controls to ensure future compliance with wage rate requirements and monitor contractor adherence to regulations.

Finding Text

2022-002 ? Education Stabilization Fund ? Prevailing wage rate requirements Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for the project paid by the Education Stabilization Fund totaled $33,000. There was not a prevailing wage clause in the contract and certified payrolls were not received. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts, subject to wage rate requirements, a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Questioned Costs: $33,000 Auditor?s Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Grantee Response: The District will comply with the wage rate requirements for the Education Stabilization Fund going forward.

Categories

Questioned Costs Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 32356 2022-002
    Significant Deficiency
  • 32358 2022-002
    Significant Deficiency
  • 32359 2022-002
    Significant Deficiency
  • 32360 2022-002
    Significant Deficiency
  • 608798 2022-002
    Significant Deficiency
  • 608799 2022-002
    Significant Deficiency
  • 608800 2022-002
    Significant Deficiency
  • 608801 2022-002
    Significant Deficiency
  • 608802 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $500,799
10.553 School Breakfast Program $268,068
93.778 Medical Assistance Program $265,221
84.027 Special Education_grants to States $79,402
84.367 Improving Teacher Quality State Grants $68,120
84.424 Student Support and Academic Enrichment Program $35,148
84.048 Career and Technical Education -- Basic Grants to States $30,487
10.559 Summer Food Service Program for Children $29,717
10.579 Child Nutrition Discretionary Grants Limited Availability $13,920
84.173 Special Education_preschool Grants $7,049
10.555 National School Lunch Program $4,701
84.358 Rural Education $1,564
15.605 Sport Fish Restoration Program $671
10.649 Pandemic Ebt Administrative Costs $614
84.365 English Language Acquisition State Grants $142
84.425 Education Stabilization Fund $100