Finding 572447 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-04
Audit: 363584
Organization: Rsu 84/msad No 14 (ME)

AI Summary

  • Core Issue: The District failed to include required prevailing wage rate language in construction contracts and did not obtain certified payrolls at payment time.
  • Impacted Requirements: This violates 29 CFR 5.5, leading to non-compliance in contract execution.
  • Recommended Follow-Up: The District should establish internal controls to ensure compliance with wage rate requirements and address this repeat finding.

Finding Text

MATERIAL WEAKNESSES 2024-001 – Special Tests and Provisions – Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Agency of Education ALN – 84.425 – Education Stabilization Fund Criteria: The following CFR applies to this finding: 29 CFR 5.5 Condition: During audit procedures, it was identified that the District did not include the prevailing wage rate language in the contract provisions for construction contracts and did not obtain copies of certified payrolls at time of payment. Cause: The District does not have the necessary internal controls over compliance. Effect: Contracts are not executed in compliance with the requirement above. Identification of Questioned Costs: None Context: We reviewed a sample of 2 contracts for construction and renovation projects out of a total population of 3. It was determined that the contracts did not include the prevailing wage rate language and that the contractor did have timely submission of the certified payrolls to the District. This is a not statistically valid sample. Repeat Finding: This is a repeat finding of 2022-001 and 2023-001 Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the RSU 84/MSAD 14.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2024-001) Contact Person Responsible for Corrective Action: Margaret White, Superintendent Corrective Action: RSU 84 will take the following actions to address finding 2024-001 Wage Rate Requirements. As stated in last year’s Corrective Action Plan, starting on May 1, 2023, RSU 84 began implementing internal control processes and procedures to ensure we followed the criteria for Special Test and Provisions Wage Rate Requirements. We asked for a prevailing wage rate clause in the contract provisions for construction contracts and obtained copies of certified payrolls. Moving forward, current and future year construction projects paid for with federal and/or state funding will include further Davis Bacon language. Starting in the FY 25 Davis Bacon contracts RSU 84 will include the missing language attached to this Corrective Action Plan. Payroll certifications will be received with each invoice submitted for payment to the district and reviewed by the Business Manager for compliance with Davis Bacon guidelines as applicable. A copy of the OMB Circulars containing the CFR guidelines has been received and reviewed by the Business Manager and applicable grant managers/coordinators to implement a more stringent internal control process and procedure to ensure all requirements are followed. The Business Manager will update the district’s administrative team and central office staff on applicable guidelines to ensure compliance with all projects paid for by federal and/or state funding. Anticipated Completion Date: June 30, 2025 Sincerely, Margaret C. White Superintendent RSU 84/MSAD 14 Basic Record Requirements- All regular payrolls and other basic records must be maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least three years after all the work on the prime contract is completed. Certified Payroll Requirements- The contractor or subcontractor must submit weekly, for each week in which any DBA-or Related Acts-covered work is performed, certified payrolls to the [appropriate Federal agency] if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the certified payrolls to the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records, for transmission to the [write name of agency]. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least three years after the work on the prime contract has been completed; and the contracting agency or prime contractor permits other methods of submission in situations where the contractor is unable or limited in its ability to use or access the electronic system.

Categories

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572448 2024-001
    Material Weakness Repeat
  • 572449 2024-001
    Material Weakness Repeat
  • 572450 2024-001
    Material Weakness Repeat
  • 572451 2024-001
    Material Weakness Repeat
  • 1148889 2024-001
    Material Weakness Repeat
  • 1148890 2024-001
    Material Weakness Repeat
  • 1148891 2024-001
    Material Weakness Repeat
  • 1148892 2024-001
    Material Weakness Repeat
  • 1148893 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $124,213
84.010 Title I Grants to Local Educational Agencies $116,447
84.027 Special Education Grants to States $46,372
10.553 School Breakfast Program $26,484
84.425 Education Stabilization Fund $16,922
84.358 Rural Education $8,865
10.555 National School Lunch Program $8,103
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $7,299
10.582 Fresh Fruit and Vegetable Program $7,219
84.287 Twenty-First Century Community Learning Centers $7,213
10.559 Summer Food Service Program for Children $4,778
10.185 Local Food for Schools Cooperative Agreement Program $743
84.173 Special Education Preschool Grants $727
10.649 Pandemic Ebt Administrative Costs $653