FAC Explorer

Finding 45726 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-05
Audit: 40164
Organization: Regional School Unit No. 1 (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The Unit failed to include the prevailing wage rate clause in construction contracts and did not review weekly certified payrolls from contractors.
  • Impacted Requirements: This finding relates to compliance with 2 CFR 5.5 regarding wage rate requirements for federal programs.
  • Recommended Follow-Up: Implement internal control processes to ensure compliance with wage rate requirements in future contracts.

Finding Text

2022-001 - Special Tests and Provisions - Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Agency of Education ALN - 84.425 - Education Stabilization Fund Criteria: The following CFR(s) apply to this finding: 2 CFR 5.5 Condition: During audit procedures, it was identified that the Unit did not include the prevailing wage rate clause in the contract provisions for construction contracts or review weekly certified payrolls from contractors. Cause: The Unit does not have the necessary internal controls over compliance. Effect: Contracts are not executed in compliance with the requirement above Identification of Questioned Costs: None identified. Context: There were two construction contracts and both were reviewed. It was determined that both contracts did not include the prevailing wage rate clause and the client didn?t review weekly certified payrolls from contractors. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Client agrees with finding, and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by Regional School Unit 01.

Corrective Action Plan

Regional School Unit 1 34 Wing Farm Parkway Bath, ME 04530 Telephone: (207) 443-6601 Facsimile: (207) 443-8295 Patrick M. Manuel, Superintendent of Schools pmanuel@rsu1.org ?Think ~ Care ~ Act? CORRECTIVE ACTION PLAN (Concerning Finding 2022-001) Contact Person Responsible for Corrective Action: Debra Clark, Business Manager Corrective Action: Regional School Unit 1 will take the following actions to address finding 2022-001 Regional School Unit 1 acknowledges that the Davis-Bacon guidelines were not followed properly in fiscal year 2022 for two of our construction contracts. There were multiple grants provided during Covid 19 and grant funding applications and timing created a challenging issue for the administrative staff. Regional School Unit 1 now has the proper federal award form and the U.S. Wage and Hour Division payroll form available to be included with new construction contracts moving forward. These forms will be provided with any future construction contracts. The Facilities Director and Business Manager have reviewed the process and we are confident that this will not be an issue in the future.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 45727 2022-002
    Significant Deficiency
  • 45728 2022-001
    Significant Deficiency
  • 45729 2022-002
    Significant Deficiency
  • 45730 2022-001
    Significant Deficiency
  • 45731 2022-002
    Significant Deficiency
  • 45732 2022-001
    Significant Deficiency
  • 45733 2022-002
    Significant Deficiency
  • 45734 2022-001
    Significant Deficiency
  • 45735 2022-002
    Significant Deficiency
  • 45736 2022-001
    Significant Deficiency
  • 45737 2022-002
    Significant Deficiency
  • 622168 2022-001
    Significant Deficiency
  • 622169 2022-002
    Significant Deficiency
  • 622170 2022-001
    Significant Deficiency
  • 622171 2022-002
    Significant Deficiency
  • 622172 2022-001
    Significant Deficiency
  • 622173 2022-002
    Significant Deficiency
  • 622174 2022-001
    Significant Deficiency
  • 622175 2022-002
    Significant Deficiency
  • 622176 2022-001
    Significant Deficiency
  • 622177 2022-002
    Significant Deficiency
  • 622178 2022-001
    Significant Deficiency
  • 622179 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $541,413
84.425 Education Stabilization Fund $375,432
10.553 School Breakfast Program $282,811
84.027 Special Education_grants to States $105,617
84.367 Improving Teacher Quality State Grants $103,121
10.555 National School Lunch Program $34,589
10.582 Fresh Fruit and Vegetable Program $5,989
84.173 Special Education_preschool Grants $5,584
10.575 Farm to School Grant Program $3,684
84.048 Career and Technical Education -- Basic Grants to States $1,337
10.649 Pandemic Ebt Administrative Costs $724
10.559 Summer Food Service Program for Children $616