Finding 50162 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-18

AI Summary

  • Core Issue: The District failed to obtain certified payrolls for contractors under the ESSER grant, risking non-compliance with prevailing wage laws.
  • Impacted Requirements: ESSER mandates that contracts over $2,000 must adhere to Davis-Bacon prevailing wage requirements.
  • Recommended Follow-Up: Implement a system to withhold contractor payments until certified payrolls are received to ensure compliance.

Finding Text

SA-2022-1 ? SIGNIFICANT DEFICIENCY - 84.425 Education Stabilization Fund (ESSER), 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 for certified 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 Central Linn School District respectfully submits the following corrective action plan in response to a deficiency reported in our audit of fiscal year ended June 30, 2022. The audit was completed by the independent auditing firm Pauly Rogers and reported the deficiency listed below. Deficiency SA-2022-1 1. The auditor noted that the District did not collect certified payrolls for contractors paid with federal ESSER funds. There was a recent change in ESSER requirements that for minor remodeling, renovation or construction contracts over $2,000 laborers and mechanics must meet Davis-Bacon prevailing wage requirements. 2. The auditor's recommendation is for the District to establish a payment system where invoices for contractors are not paid until certified payrolls are received. Central Linn is adopting the recommendation. 3. The district has established a notification procedure where all district and contractor personnel are made aware of the prevailing wage requirement for public works jobs. The previous maintenance supervisor that failed to notify contractors has been removed from the position and replaced with an employee whose sole function is maintenance and reports directly to the Superintendent. As a result of the finding, the Business Manager, who is knowledgeable of the funding source, is now involved in communication with contractors.

Categories

Significant Deficiency

Other Findings in this Audit

  • 50163 2022-001
    Significant Deficiency
  • 626604 2022-001
    Significant Deficiency
  • 626605 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $346,439
84.010 Title I Grants to Local Educational Agencies $209,512
10.553 School Breakfast Program $52,158
84.027 Special Education_grants to States $31,119
84.367 Improving Teacher Quality State Grants $25,531
84.358 Rural Education $22,222
84.424 Student Support and Academic Enrichment Program $16,491
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $14,331
10.555 National School Lunch Program $9,635
84.048 Career and Technical Education -- Basic Grants to States $5,826
10.559 Summer Food Service Program for Children $1,825
84.173 Special Education_preschool Grants $719
10.649 Pandemic Ebt Administrative Costs $614