Finding 554237 (2024-001)

Significant Deficiency 2024-001 – WAGE RATE REQUIREMENTS Federal Program Information: U.S. Department of Education Passed through the State of Maine Department of Education: ALN 84.425 Education Stabilization Fund Criteria: The following CFR(s) 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 Unit had construction projects in excess of $2,000 that were not in compliance with the requirements in the criteria above. Some work was performed under contracts that did not include the full language of the required Davis Bacon contract clause. Additionally, it was identified that one of the contractor’s Certified Payroll did not include all required elements. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The construction projects may not have been performed in compliance with the federal Wage Rate Requirements Identification of Questioned Costs: None identified. Context: During audit procedures, we tested 4 contractors and 2 out of the 4 had issues. One did not have a contract, a proposal was used instead of a contract. This contractor did provide Correct Certified Payroll documentation. The other second contractor did provide the Certified payroll documentation, but it was not completed correctly. These construction projects began prior to the beginning of FY24 or during the first quarter of FY 24 prior to RSU 29’s. Repeat Finding: This is a repeat finding of 2023-001. Recommendation: It is recommended that the Unit familiarize themselves with federal Wage Rate Requirements and implement an internal control process and procedure to ensure that they are following the required criteria mentioned above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Regional School Unit No. 29.