FAC Explorer

Finding 403170 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-06-27
Audit: 310311
Organization: Attalla City Board of Education (AL)
Auditor: Richard Harris Ingram and Bozeman PC

AI Summary

  • Core Issue: COVID-19 Education Stabilization Fund was misused for construction contracts over $2,000 without required wage rate clauses.
  • Impacted Requirements: Non-compliance with the Davis-Bacon Act, which mandates prevailing wage rates for certain contracts.
  • Recommended Follow-Up: Implement controls to ensure future contracts funded by ESF include necessary wage rate clauses and require certified payroll submissions.

Finding Text

Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. We recommend the Board implement controls to ensure they comply with the wage rate requirements when applicable. Management responds they will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESF) in excess of $2,000 specify applicability of wage rate requirements.

Corrective Action Plan

Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. Response: Management will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESF) in excess of $2,000 specify applicability of wage rate requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Special Tests & Provisions

Other Findings in this Audit

  • 979612 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $410,127
10.553 School Breakfast Program $236,980
84.287 Twenty-First Century Community Learning Centers $139,224
17.259 Wia Youth Activities $95,665
10.555 National School Lunch Program $56,857
12.357 Rotc Language and Culture Training Grants $45,335
84.367 Improving Teacher Quality State Grants $44,399
84.184 Safe and Drug-Free Schools and Communities_national Programs $26,655
84.196 Education for Homeless Children and Youth $25,092
84.027 Special Education_grants to States $23,383
84.048 Career and Technical Education -- Basic Grants to States $18,379
84.173 Special Education_preschool Grants $6,444
84.425 Education Stabilization Fund $4,458
96.001 Social Security_disability Insurance $520