FAC Explorer

Finding 37457 (2022-003)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-11
Audit: 28135
Organization: McMinn County, Tennessee (TN)
Auditor: Comptroller of the Treasury Division of Local Government Audit

AI Summary

  • Core Issue: The school department failed to document compliance with the Davis-Bacon Act for a renovation project funded by federal grants.
  • Impacted Requirements: This noncompliance affects the wage rate requirements for construction contracts over $2,000, leading to potential questioned costs of $33,306.
  • Recommended Follow-Up: Implement stronger management oversight to ensure compliance documentation is maintained for all federally funded projects.

Finding Text

FINDING 2022-003 THE SCHOOL DEPARTMENT DID NOT DOCUMENT COMPLIANCE WITH THE DAVIS-BACON ACT (Noncompliance Under OMB Uniform Guidance) Entity McMinn County, Tennessee ? School Department Repeat Finding Number: N/A Assistance Listings #: 84.425D, Covid 19 - Education Stabilization Fund Program - Elementary and Secondary School Emergency Relief Fund (ESSER II) Assistance Listings Title: Education Stabilization Fund Federal Agency Department of Education State Pass-Through Agency: Department of Education Grant/Contract No.: N/A Federal Award Year: 2022 Finding Type: Noncompliance ? 84.425D Compliance Requirement: Special Tests and Provisions ? Wage Rate Requirements Known Questioned Costs: $33,306 The school department did not document its compliance with the Davis-Bacon Act for a renovation project at McMinn County High School that was funded by a federal Education Stabilization Grant (FAL No. 84.425D). Expenditures for a building addition to install a walk-in freezer were reimbursed with federal grant funds totaling $126,731 during the year ended June 30, 2022. Under the Davis-Bacon Act, contractors and subcontractors are required 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 $33,306 of this project. This finding was a result of a lack of management oversight.

Corrective Action Plan

FINDING THE SCHOOL DEPARTMENT DID NOT DOCUMENT COMPLIANCE WITH THE DA VIS-BACON ACT Response and Corrective Action Plan Prepared by: Jason D. Luallen, Director of Finance Person Responsible for Implementing the Corrective Action: Jason D. Luallen, Director of Finance Anticipated Completion Date of Corrective Action: 7/1/22 Repeat Finding: No Reason Corrective Action was Not Taken in the Prior Year: N/A Planned Corrective Action: McMinn County has already taken steps to assure that Davis-Bacon Act compliance is included in bids for federally funded projects.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Covid 19 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund (esser Ii) $3.03M
84.027 Special Education_grants to States $1.53M
84.010 Title I Grants to Local Educational Agencies $1.52M
84.425 Covid 19 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund (esser Arp) $1.18M
10.553 School Breakfast Program $879,314
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $398,775
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $393,122
10.555 National School Lunch Program $254,579
84.367 Improving Teacher Quality State Grants $245,043
20.106 Airport Improvement Program $239,962
84.048 Career and Technical Education -- Basic Grants to States $187,096
93.558 Temporary Assistance for Needy Families $130,716
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $93,701
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $83,277
84.371 Striving Readers $82,800
10.558 Child and Adult Care Food Program $82,431
84.027 Covid 19 - American Recovery Plan - Special Education_grants to States (arp) $59,450
84.287 Twenty-First Century Community Learning Centers $59,094
16.034 Covid 19 - Coronavirus Emergency Supplemental Funding Program $54,518
93.991 Preventive Health and Health Services Block Grant $42,838
93.778 Medical Assistance Program $41,722
84.425 Covid 19 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Early Literacy Network Grant (esser Ii) $40,000
97.042 Emergency Management Performance Grants $35,722
84.425 Covid 19 - Education Stabilization Fund - Governors Emergency Education Relief Fund (geer) $33,000
93.994 Maternal and Child Health Services Block Grant to the States $30,816
20.607 Alcohol Open Container Requirements $30,081
84.425 Covid 19 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth (esser Arp) $28,361
97.067 Homeland Security Grant Program $25,988
84.173 Special Education_preschool Grants $16,914
84.365 English Language Acquisition State Grants $10,131
84.425 Covid 19 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Fiscal Pre-Monitoring Supports Grant (esser Ii) $6,219
15.226 Payments in Lieu of Taxes $6,174
93.217 Family Planning_services $4,832
10.665 Schools and Roads - Grants to States $4,225
10.649 Covid 19 - Pandemic Ebt Administrative Costs $3,063
84.173 Covid 19 - Special Education_preschool Grants $2,301
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $1,890
93.136 Injury Prevention and Control Research and State and Community Based Programs $270