Finding 580122 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-07
Audit: 5757
Organization: Countryside Charter Academy (MI)

AI Summary

  • Core Issue: The School failed to inform contractors about the required Davis Bacon prevailing wage rates for federally funded construction projects.
  • Impacted Requirements: This oversight violates federal guidelines that mandate notification of wage requirements for projects funded by federal assistance.
  • Recommended Follow-Up: Ensure all future construction contracts funded by federal money explicitly state the need to comply with Davis Bacon wage requirements.

Finding Text

Finding: 2023 – 003 – Federal Assistance Listing Number, Federal Agency, and Program Name – 84.425U – U.S. Department of Education– Education Stabilization Fund – Elementary Secondary School Relief Fund (ESSER III) Finding Type – Significant Deficiency (Uniform Guidance) – Special Tests and Provisions – Wage Rate Requirements Criteria – The School is required to notify contractors and subcontractors of Davis Bacon prevailing wage requirements when the School has a construction project being paid with federal funds. Condition – While reviewing the construction request for proposal for the construction project that was used by federal funds, there was no mention that contractors and subcontracts must use the Davis Bacon prevailing wage requirement. Questioned Costs – None. Cause - The School omitted the Davis Bacon prevailing wage requirement that is required for construction request for proposal for projects that are being paid with federal funds. Effect – The School omitted the Davis Bacon prevailing wage requirements in the School’s request for proposal for the construction project that was paid with federal funds. By doing this the School did not notify the contractors and subcontractors that Davis Bacon prevailing wage requirements are required. There is a risk that prevailing wages were not paid. Recommendation – The School should include in all construction contracts that are being paid with federal fund that Davis Bacon prevailing wage requirements must be paid. School’s Response – The School concurs with this finding and will include Davis Bacon prevailing wage requirements in all future construction contracts that are being paid by federal funds.

Categories

Special Tests & Provisions Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 3680 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.55M
84.010 Title I Grants to Local Educational Agencies $401,108
10.553 School Breakfast Program $147,897
84.367 Improving Teacher Quality State Grants $45,250
84.424 Student Support and Academic Enrichment Program $36,044
84.358 Rural Education $22,207
84.365 English Language Acquisition State Grants $20,703
84.048 Career and Technical Education -- Basic Grants to States $13,100
10.579 Child Nutrition Discretionary Grants Limited Availability $9,208
10.559 Summer Food Service Program for Children $6,403
93.778 Medical Assistance Program $4,567
10.185 Local Food for Schools $3,956
10.555 National School Lunch Program $3,313
10.649 Pandemic Ebt Administrative Costs $628