FAC Explorer

Finding 520705 (2024-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-29
Audit: 340444
Organization: Isd 2364 - Belgrade-Brooten-Elrosa (MN)
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: A selected construction contract lacked the necessary prevailing wage requirements.
  • Impacted Requirements: Internal controls for ensuring compliance with federal wage standards were not followed.
  • Recommended Follow-Up: Implement checks to guarantee that all construction contracts funded by federal awards include prevailing wage clauses.

Finding Text

Criteria: Internal controls that assure all construction contracts entered into with federal awards have prevailing wage requirements. Questioned Costs: None Condition: We selected a construction contract to test for prevailing wage requirements noting that this project had not met these requirements as prevailing wage verbiage was not included in the contract. Context: Construction contracts not following prevailing wage requirements could have been accepted. Effect or Potential Effect: Prevailing wage requirements could have not been met and would impact the amount of federal funding the District receives or the use of it on projects. Cause: The District did not oversee that prevailing wage requirements were included in contracts. Recommendation: Ensure the prevailing wage requirement are included in all construction contracts paid for with federal funds.

Corrective Action Plan

1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: Internal control measures will be adjusted to identify construction projects funded by federal resources and to guarantee that project specifications include the necessary components for prevailing wages. 3. Official Responsible for Ensuring CAP: Patrick Walsh, Superintendent, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP: The planned completion date for the CAP is June 30, 2025. 5. Plan to Monitor Completion of CAP: The School Board will be monitoring this CAP.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 520706 2024-004
    Material Weakness
  • 520707 2024-004
    Material Weakness
  • 1097147 2024-004
    Material Weakness
  • 1097148 2024-004
    Material Weakness
  • 1097149 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $167,629
84.010 Title I Grants to Local Educational Agencies $99,353
84.011 Migrant Education State Grant Program $85,333
10.553 School Breakfast Program $63,132
84.358 Rural Education $52,906
10.558 Child and Adult Care Food Program $43,678
84.027 Special Education Grants to States $38,233
10.579 Child Nutrition Discretionary Grants Limited Availability $21,132
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $16,384
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education Preschool Grants $7,427
21.027 Coronavirus State and Local Fiscal Recovery Funds $4,504
84.425 Education Stabilization Fund $907
84.048 Career and Technical Education -- Basic Grants to States $595