Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund
Assistance Listing Number: 84.425D & 84.425C
Federal Award Identification Number and Year: 2021
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number(s): 2022-401253-DPI-ESSERFII-163 & 2022-401253-DPI-ESSERFIII-165
Award Period: March 13, 2020 through September 30, 2029 & July 1, 2020 through September 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria or specific requirement: For contracts between federal award recipients and contracts that are subject to David-Bacon Act requirements, 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(I)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions) and 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the contractor or subcontractor submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls).
Condition: Both of the qualifying projects selected for testing for compliance with requirements of the Davis-Bacon Act for the submission of weekly certified payrolls by the contractor. The District did not obtain or review weekly payrolls for either contract subject to Davis-Bacon Act provisions. For both contracts certified payrolls were subsequently obtained supporting related weekly payroll.
Questioned costs: None
Context: The District entered into agreements during the fiscal year under audit for project that were below the scope the contractor and District require full contracts, which included establishing submission and monitoring requirements for weekly certified payrolls. As the District does not commonly entered into contracts subject to these requirements, policies and process in place did not address these requirements.
Cause: The District did not design and implement controls to ensure weekly certified payrolls were completed by the contractor and submitted to the District contracts qualifying for Davis-Bacon Act provisions.
Effect: Projects subject to compliance with provisions of the Davis-Bacon Act may not be in compliance with required provision for required weekly pay..
Repeat Finding: The finding is not a repeat finding.
Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obtained and reviewed for all contracts subject to compliance with Davis-Bacon Act.
Views of responsible officials: There is no disagreement with the audit finding.
Federal Program Name: Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund
Assistance Listing Number: 84.425D & 84.425C
Federal Award Identification Number and Year: 2021
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number(s): 2022-401253-DPI-ESSERFII-163 & 2022-401253-DPI-ESSERFIII-165
Award Period: March 13, 2020 through September 30, 2029 & July 1, 2020 through September 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria or specific requirement: For contracts between federal award recipients and contracts that are subject to David-Bacon Act requirements, 29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(I)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions) and 2 CFR Part 176, Subpart C; and 2 CFR section 200.326 require the contractor or subcontractor submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls).
Condition: Both of the qualifying projects selected for testing for compliance with requirements of the Davis-Bacon Act for the submission of weekly certified payrolls by the contractor. The District did not obtain or review weekly payrolls for either contract subject to Davis-Bacon Act provisions. For both contracts certified payrolls were subsequently obtained supporting related weekly payroll.
Questioned costs: None
Context: The District entered into agreements during the fiscal year under audit for project that were below the scope the contractor and District require full contracts, which included establishing submission and monitoring requirements for weekly certified payrolls. As the District does not commonly entered into contracts subject to these requirements, policies and process in place did not address these requirements.
Cause: The District did not design and implement controls to ensure weekly certified payrolls were completed by the contractor and submitted to the District contracts qualifying for Davis-Bacon Act provisions.
Effect: Projects subject to compliance with provisions of the Davis-Bacon Act may not be in compliance with required provision for required weekly pay..
Repeat Finding: The finding is not a repeat finding.
Recommendation: We recommend the District design and implement internal controls that ensure required documentation of weekly certified payrolls are obtained and reviewed for all contracts subject to compliance with Davis-Bacon Act.
Views of responsible officials: There is no disagreement with the audit finding.