Finding Text
Reference Number: 2022-005 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District 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 ESSER program. The District used $199,305 in ESSER funds for UV Lighting upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements. It was ultimately determined that the contract did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the 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 ESSER program. Potential Effect: The District could have charged contract costs to ESSER that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using ESSER funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.