Finding 36236 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-20
Audit: 34159
Organization: Sheboygan Area School District (WI)

AI Summary

  • Core Issue: The District failed to collect certified payrolls from contractors, violating Department of Labor regulations.
  • Impacted Requirements: Construction contracts must include provisions for contractors to submit weekly certified payrolls to ensure compliance with wage rate standards.
  • Recommended Follow-Up: The District should review and improve its procedures for managing wage rate requirements and certified payroll documentation.

Finding Text

2022 ? 002 ? Special Tests and Provisions ? Wage Rate Requirements Federal Agency: United State Department of Education Federal Program Name: Elementary and Secondary School Emergency Relief Funds Assistance Listing Number: 84.425D Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2021-595271-DPI-ESSERFIII-163 Award Period: 03/13/2020 ? 09/30/2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance (Modified Opinion) Criteria: The District is required to include in their construction contracts a provision that the contractor or subcontractor comply with the requirements of the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The District did not obtain certified payrolls from the contractor in accordance with the Department of Labor regulations. Questioned costs: $399,939 Context: In our sample of one out of one contractor relationship, the District was not able to provide certified payrolls submitted during the year. Cause: The District did not obtain and retain certified payrolls in accordance with Department of Labor regulations. Effect: Laborers may be paid a wage that is less than those established for the locality of the project by the Department of Labor. Recommendation: We recommend the District reevaluate procedures related to wage rate requirements, specifically requirements related to certified payrolls. View of Responsible Officials: There is no disagreement with the audit finding. Repeat Finding: No

Categories

Questioned Costs Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36235 2022-002
    Material Weakness
  • 36237 2022-002
    Material Weakness
  • 612677 2022-002
    Material Weakness
  • 612678 2022-002
    Material Weakness
  • 612679 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $1.42M
10.553 School Breakfast Program $1.41M
84.425 Education Stabilization Fund $776,677
32.009 Emergency Connectivity Fund Program $492,350
10.555 National School Lunch Program $462,034
10.558 Child and Adult Care Food Program $417,273
84.287 Twenty-First Century Community Learning Centers $366,450
84.027 Special Education_grants to States $294,846
10.559 Summer Food Service Program for Children $227,771
84.367 Improving Teacher Quality State Grants $203,581
84.365 English Language Acquisition State Grants $191,662
10.582 Fresh Fruit and Vegetable Program $125,165
84.173 Special Education_preschool Grants $112,744
84.048 Career and Technical Education -- Basic Grants to States $86,857
84.424 Student Support and Academic Enrichment Program $55,391
84.010 Title I Grants to Local Educational Agencies $48,829
84.196 Education for Homeless Children and Youth $29,927
10.649 Pandemic Ebt Administrative Costs $5,815
93.566 Refugee and Entrant Assistance_state Administered Programs $5,764
84.427 Covid-19 American Rescue Plan Act - Homeless Children and Youth $3,734