FAC Explorer

Finding 563601 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-06-03
Audit: 357874
Organization: Gadsden City Board of Education (AL)
Auditor: Richard Harris Ingram and Bozeman

AI Summary

  • Core Issue: COVID-19 Education Stabilization Fund was misused for construction contracts over $2,000 without required wage rate clauses.
  • Impacted Requirements: Non-compliance with the Davis-Bacon Act, which mandates prevailing wage rates for certain contracts.
  • Recommended Follow-Up: Implement controls to ensure future contracts funded by ESF include necessary wage rate clauses and require certified payroll submissions.

Finding Text

Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. We recommend the Board implement controls to ensure they comply with the wage rate requirements when applicable. Management responds they will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESF) in excess of $2,000 specify applicability of wage rate requirements.

Corrective Action Plan

Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. Response: Management will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESF) in excess of $2,000 specify applicability of wage rate requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Special Tests & Provisions

Other Findings in this Audit

  • 1140043 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.21M
84.287 Twenty-First Century Community Learning Centers $1.40M
84.027 Special Education Grants to States $1.37M
10.553 School Breakfast Program $886,831
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $281,246
10.558 Child and Adult Care Food Program $235,980
84.048 Career and Technical Education -- Basic Grants to States $133,986
84.424 Student Support and Academic Enrichment Program $130,454
10.555 National School Lunch Program $127,989
10.559 Summer Food Service Program for Children $120,741
84.173 Special Education Preschool Grants $97,016
12.357 Rotc Language and Culture Training Grants $75,251
84.365 English Language Acquisition State Grants $61,043
84.425 Education Stabilization Fund $44,757
84.196 Education for Homeless Children and Youth $33,361
81.041 State Energy Program $17,148
96.001 Social Security Disability Insurance $1,840