FAC Explorer

Finding 512949 (2023-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-12-04
Audit: 330756
Organization: Regional School Unit 9 Dba Mt Blue Regional School District (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The District's construction projects over $2,000 did not meet federal Wage Rate Requirements.
  • Impacted Requirements: Compliance with 2 CFR Appendix II to Part 200 and 29 CFR 5.2 and 5.5.
  • Recommended Follow-Up: The District should enhance internal controls and ensure staff are trained on federal Wage Rate Requirements.

Finding Text

2023-002 – 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 CFRs apply to this finding: 2 CFR Appendix II to Part 200; 29 CFR 5.2; 29 CFR 5.5. Condition: During audit procedures, it was identified that the District had construction projects in excess of $2,000 that were not in compliance with the requirements in the criteria above. Cause: The District does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with federal Wage Rate Requirements. Identification of Questioned Costs: None Identified. Context: There were 2 construction projects identified by auditors in the sample of expenses reviewed for the grant. This was not a statistically valid sample. Repeat Finding: This is a repeat finding of 2022-004. Recommendation: It is recommended that the District familiarize themselves with federal Wage Rate Requirements and 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 the School District.

Corrective Action Plan

Finding 2023-002 – Wage Rate Requirements Contact Person Responsible for Corrective Action: Alison Gamache, Director of Finance Corrective Action: As of 9/1/2023 all prime construction contracts in excess of $2,000 awarded by the school district will include a provision for compliance with the Davis-Bacon Act. The school district will also provide a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The contracts will also include a provision for compliance with the Copeland "Anti-Kickback" Act. Anticipated Completion Date: By June 30, 2025

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 512950 2023-002
    Material Weakness Repeat
  • 512951 2023-002
    Material Weakness Repeat
  • 512952 2023-002
    Material Weakness Repeat
  • 512953 2023-002
    Material Weakness Repeat
  • 512954 2023-002
    Material Weakness Repeat
  • 1089391 2023-002
    Material Weakness Repeat
  • 1089392 2023-002
    Material Weakness Repeat
  • 1089393 2023-002
    Material Weakness Repeat
  • 1089394 2023-002
    Material Weakness Repeat
  • 1089395 2023-002
    Material Weakness Repeat
  • 1089396 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.26M
10.555 National School Lunch Program $344,487
84.358 Rural Education $235,641
10.553 School Breakfast Program $213,448
21.027 Coronavirus State and Local Fiscal Recovery Funds $200,544
10.559 Summer Food Service Program for Children $110,606
84.048 Career and Technical Education -- Basic Grants to States $86,325
84.027 Special Education Grants to States $72,669
17.U01 Apprenticeship Grant $58,850
84.002 Adult Education - Basic Grants to States $28,519
84.010 Title I Grants to Local Educational Agencies $15,334
84.173 Special Education Preschool Grants $10,192