Finding Text
2023-002: Federal #85.425 – Education Stabilization Fund – Special Tests
Finding Type - Material weakness in internal control over compliance.
Criteria - Management must have internal controls in place to ensure that construction contracts over
$2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the
Education Stabilization Fund grants.
Condition – The District issued $835,960 payment using GEER II funds (84.425C) for fiber internet
installation prior to receiving and reviewing contractor provided certified payroll reports.
Cause - Internal controls in place did not ensure that contractor payroll met the Davis-Bacon prevailing
wage requirements.
Effect or Potential Effect – The District could have charged contract costs to the program that were not
allowable.
Recommendations - We highly recommend that the District implement controls that verify compliance with
Davis-Bacon prevailing wage requirements for all construction contracts using Education Stabilization
funds and retain supporting documentation.
Views of Responsible Officials and Planned Corrective Actions - Management agrees with this finding.
Management will properly apply internal controls to ensure contractors meet the Davis-Bacon prevailing
wage requirements prior to charging expenses to the Education Stabilization Fund grants.