Finding 5549 (2023-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2023-12-19
Audit: 7381
Organization: Slater School District (MO)

AI Summary

  • Core Issue: The District hired a contractor who did not pay the required prevailing wages for laborers and mechanics.
  • Impacted Requirements: This violates OMB 2 CFR Part 200 and Davis Bacon wage requirements.
  • Recommended Follow-up: Review contractor compliance processes to ensure all future hires meet prevailing wage standards.

Finding Text

2023-002 ARP Esser (Esser III) Grant No. S425U210021 Criteria: OMB 2 CFR Part 200, Appendix X1, Compliance Supplement for Federal Assistance Number 84.425, Subpart F, instructs that laborers and mechanics must meet prevailing wage requirements. Condition: The District used a contractor that did not pay prevailing wages. Context: During our audit, we tested for prevailing wages on school improvement project and it was determined that The District used a contractor that did not pay prevailing wages. Cause: Inadvertent oversight by the District that it was believed the company was a sole proprietor and not subject to Davis Bacon Requirements, but the company was a corporation and therefore subject to Davis Bacon wage requirements. Effect: The District paid a contractor that did not follow Davis Bacon requirements. Questioned Costs:

Corrective Action Plan

November 16, 2023 U.S. Department of Education Slater School District respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Terry Lorenz, Superintendent Slater School District Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2023-002 ARP Esser III Grant No. S425U210021 Recommendation: The District needs to ensure that contractors are paying prevailing wage. Action Taken: The superintendent was new as of July 1, 2022 and the contracts were already in place, but will make sure in the future that Davis Bacon wage requirements are monitored and corrected. Completion Date: June 30, 2024 Sincerely, Terry Lorenz, Superintendent Slater School District

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $122,725
10.553 School Breakfast Program $67,174
84.358 Rural Education $23,897
10.555 National School Lunch Program $13,454
84.425 Education Stabilization Fund $10,000
84.027 Special Education_grants to States $3,816
84.173 Special Education_preschool Grants $1,206
93.434 Every Student Succeeds Act/preschool Development Grants $100
39.003 Donation of Federal Surplus Personal Property $51
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $50