Finding 374445 (2023-003)

2023‐003 Department of Education Elementary and School Emergency Relief CFDA No. 84.425U Special Tests – Wage Rate Requirement Significant Deficiency in Internal Control Over Compliance 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 for wage rates. Condition: The District did not ensure proper and timely inclusion of prevailing wage rate clauses in one construction contract. 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 Context/Sampling: Overall compliance requirement Repeat Finding from Prior Year: Yes 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 finding.