MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUATION STABILIZATION FUND – FEDERAL ALN 84.425
2024-002 Internal Control Over Compliance and Material Noncompliance With Special Tests and Provisions Over Wage Rate Requirements
Finding Summary
29 CFR part 5 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including wage rate requirements applicable to the education stabilization fund. During our audit, we noted the District did not have sufficient controls in place resulting in material noncompliance within its education stabilization funds federal program to ensure compliance with wage rate requirements related to minor remodeling, renovation, or construction contracts that are over $2,000 that use laborers and mechanics that are required to meet Davis-Bacon Act prevailing wage rate requirements.
Corrective Action Plan
Actions Planned – The District is in the process of reviewing and updating its policies and procedures relating to wage rate requirements for its federal programs to ensure compliance with the Uniform Guidance in the future. The review of procedures will also include steps to ensure that district personnel are following the requirements of the Uniform Guidance related to wage rate requiremetns and maintaining appropriate documentation.
Official Responsible – The District’s Director of Finance and Operations, Mark Kumlien.
Planned Completion Date – June 30, 2025.
Disagreement With or Explanation of Finding – The District is in agreement with this finding.
Plan to Monitor – The District’s Director of Finance and Operations, Mark Kumlien, will assure appropriate internal controls and procedures are updated and in place to ensure compliance with wage rate requirements.