FAC Explorer

Finding 512476 (2024-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-01
Audit: 330250
Organization: Chippewa Hills School District (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: The District failed to provide proof that prevailing wages were paid for construction projects funded by the COVID-19 Education Stabilization Fund.
  • Impacted Requirements: Compliance with 2 CFR 200, which mandates that contractors pay at least the prevailing wages set by the Secretary of Labor.
  • Recommended Follow-Up: Review and update contract processes to ensure inclusion of prevailing wage requirements and obtain necessary documentation for compliance.

Finding Text

Finding 2024-006 – SPECIAL TESTS Type: Significant Deficiency in internal control over compliance / Noncompliance – Prevailing Wage Program: COVID 19 - Education Stabilization Fund (ALN 84.425U – ESSER III Formula) Condition: The District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant. Criteria: Per 2 CFR 200, Appendix II(D), contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Cause: Management oversight. Effect: Wages paid for construction projects may have been paid below the prevailing wage requirements. Recommendation: We recommend that the District review their process over awarding contracts paid with federal funds to ensure that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages were paid. Management’s Resp: We are in agreement with this finding.

Corrective Action Plan

Finding 2024-006 - Corrective Action Plan CHSD - 2023-2024 Audit Findings Finding 2024-006 Special Tests Type: Significant Deficiency in internal control over compliance / Noncompliance Prevailing Wage. Program: COVID 19 - Education Stabilization Fund (ALN 84.425U ESSER III Formula) Condition: As a result of Management oversight, the District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant. Corrective action to be taken: Grant agreements will be reviewed, approved, and maintained by all applicable shareholders to ensure awarded contracts paid with state or federal funds from the grant has the requisite legal compliance metrics guaranteeing that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages are paid. Corrective action timeline: The corrective action is effective immediately. District leader responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance

Categories

Internal Control / Segregation of Duties Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 512474 2024-004
    Material Weakness
  • 512475 2024-005
    Material Weakness Repeat
  • 1088916 2024-004
    Material Weakness
  • 1088917 2024-005
    Material Weakness Repeat
  • 1088918 2024-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $614,414
10.553 School Breakfast Program $259,040
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $86,666
10.559 Summer Food Service Program for Children $57,811
84.424 Student Support and Academic Enrichment Program $51,049
10.555 National School Lunch Program $26,680
84.060 Indian Education Grants to Local Educational Agencies $24,481
93.778 Medical Assistance Program $11,876
10.582 Fresh Fruit and Vegetable Program $1,402
84.425 Education Stabilization Fund $1,013