Finding 48759 (2022-001)

2022-001 - Special Tests and Provisions Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Department of Education ALN - 84.425 - Education Stabilization Fund Criteria: The following CFR applies to this finding: 29 CFR 5.5 Condition: During audit procedures, it was identified that the Unit did not include wage rate certification requirement in contracts for construction projects and did not obtain copies of certified payrolls. 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 the contracts did not include the prevailing wage rate clause and that the contractor did not submit the certified payrolls to the Unit. 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: Please see the Corrective Action Plan issued by RSU 13.