Finding Text
2022-006 Policies on Internal Control Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425C/84.425D/84.425U/84.425W Federal Award Identification Number and Year: N/A Pass-Through Agency: New Mexico Public Education Department Pass-Through Number(s): 24308/24316 Award Period: July 1, 2021-June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Per 29 C.F.R. ? 5.5 - Construction contracts greater than $2,000 must have a contract clause pertaining to prevailing wage rates. For each week in which work was performed under the contract, the contractor must be required to submit certified payrolls. Condition: During our audit of the Education Stabilization Fund program, we noted the following: ? The district did not have formal written policies or procedures in place for procurement to require contractors and subcontractors to submit certified payrolls for each week in which work was performed for construction contracts in excess of $2,000.. Questioned costs: None. Context: See ?Condition.? Cause: Management oversight. Effect: Noncompliance with applicable grant regulations. Recommendation: We recommend updating policies and procedures related to procurement to include the necessary clauses and requirements for construction contracts in excess of $2,000 when federal funds are being utilized. Views of responsible officials: A standard operating procedure (SOP) will be developed with the appropriate departments to ensure contractors are submitting their weekly payrolls to the District for any construction project that is federally funded or assisted in excess of $2,000.00. The Chief Procurement Officer will ensure the corrective action plan is completed by June 30, 2023.