Finding 45486 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-22

AI Summary

  • Core Issue: The District failed to obtain certified payrolls for contractors on ESSER projects over $2,000, risking non-compliance with prevailing wage laws.
  • Impacted Requirements: ESSER mandates that all contracts using laborers and mechanics meet Davis-Bacon wage standards, which many contractors may not have followed.
  • Recommended Follow-Up: Implement a system to withhold contractor payments until certified payrolls are received to ensure compliance with wage requirements.

Finding Text

ESSER requires that for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. The District did not get certified payrolls for many contractors within the ESSER grant. The reason for this is that the ESSER requirements are new and a lot of entities did not know the limit forcertified payrolls was lowered to $2,000. The effect is it?s possible that some contractors did not pay prevailing wage. We recommend that the District put in place a system where invoices for contractors are not paid until they receive certified payrolls, or some sort of system that ensures compliance.

Corrective Action Plan

Corrective Action Plan The Falls City School District submits the following corrective action plan in response to a deficiency found and reported in our audit of the fiscal year ended June 30th, 2022. The audit was completed by the independent auditing firm Pauly Rogers and Co., who reported the deficiency. The deficiency is listed below, including the plan of action and timeframe: SA-2022-1 ? Significant Deficiency The auditor noted that the school district did not receive certified payroll from contractors to ensure that the Davis-Bacon prevailing wages requirement was being met. The auditors recommend that the school district implement a system where invoices are not paid until the district receives certified payrolls, or a similar system to ensure the school district maintains compliance. For future projects of similar nature, the school district will require contractors to present certified payroll for the time period noted on the invoice, to ensure that the contractors are meeting the Davis-Bacon prevailing wages requirements, and that the school district remains in compliance.

Categories

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Other Findings in this Audit

  • 45487 2022-001
    Significant Deficiency
  • 621928 2022-001
    Significant Deficiency
  • 621929 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $286,085
84.010 Title I Grants to Local Educational Agencies $79,339
84.027 Special Education_grants to States $27,860
10.553 School Breakfast Program $22,862
10.558 Child and Adult Care Food Program $13,812
10.555 National School Lunch Program $8,028
84.367 Improving Teacher Quality State Grants $7,559
84.358 Rural Education $6,247
10.559 Summer Food Service Program for Children $877
10.649 Pandemic Ebt Administrative Costs $614