Finding 538149 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: Wage certificates were missing for construction projects over $2,000, leading to noncompliance with federal wage rate requirements.
  • Impacted Requirements: Federal guidelines mandate proper documentation for construction funding under §7007, §7002, and §7003(b).
  • Recommended Follow-Up: The District should enhance internal controls and ensure all contracts include necessary wage rate clauses and documentation.

Finding Text

2024-001 WAGE RATE REQUIREMENTS Program: Impact Aid Federal Assistance Listing Number: 84.041 Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: N. Special Tests and Provisions Condition/Context: Wage certificates were not maintained for construction projects exceeding $2,000 or other minor remodeling projects during the current year. Documentation was not maintained to support contracts included the proper wage rate clauses. Criteria: According to Federal guidelines, §7007 construction funds, as well as any §7002 or §7003(b) funds expended for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b). Cause: Management oversight and turnover in the federal grant department. Effect: Noncompliance and internal control weakness. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District to review its internal control procedures over wage rate requirements and construction projects to ensure the proper documentation and disclosures are entered into contracts and obtained from contractors. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over the federal wage rate requirements. Contact Person: Barbara Baca, Business Manager

Corrective Action Plan

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Sanders Unified School District No. 18 respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS— FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2024-001 WAGE RATE REQUIREMENTS Program: Impact Aid Federal Assistance Listing Number: 84.041 Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: N. Special Tests and Provisions Condition/Context: Wage certificates were not maintained for construction projects exceeding $2,000 or other minor remodeling projects during the current year. Documentation was not maintained to support contracts included the proper wage rate clauses. Criteria: According to Federal guidelines, §7007 construction funds, as well as any §7002 or §7003(b) funds expended for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b). Corrective Action: The District will ensure the proper wage rate language is included in all contracts for construction and minor remodeling projects exceeding $2,000. In addition, wage rate certifications will be received when necessary and reviewed to ensure they adhere to wage rate requirements. Planned completion date for corrective action plan: For the period ending June 30, 2025. Name of the contact person responsible for corrective action: Barbara Baca, Business Manager

Categories

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

Other Findings in this Audit

  • 1114591 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $6.48M
84.425 Education Stabilization Fund $1.72M
84.010 Title I Grants to Local Educational Agencies $931,832
10.553 School Breakfast Program $164,714
16.710 Public Safety Partnership and Community Policing Grants $130,556
84.060 Indian Education Grants to Local Educational Agencies $120,194
84.027 Special Education Grants to States $89,659
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $70,055
84.424 Student Support and Academic Enrichment Program $69,431
15.130 Indian Education Assistance to Schools $52,526
10.555 National School Lunch Program $28,238
84.048 Career and Technical Education -- Basic Grants to States $17,383
10.559 Summer Food Service Program for Children $13,411
84.358 Rural Education $13,379
84.173 Special Education Preschool Grants $9,439