Finding Text
Department of Education
Impact Aid
CFDA #84.041
2020 Award Year
Special Tests and Provisions
Material Weakness in Internal Controls over Compliance
Criteria – Wage Rate Requirements – Section 7007 construction funds, as well as any Section 7002 or 7003(b)
funds spent for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).
Condition – In our testing of the 2020 Section 7007 construction expenditures, information was not obtained to
support wage rate requirements for construction expenditures.
Cause – Lack of oversight, awareness, or understanding of all of the specific requirements for information on
construction expenditures related to wage rate requirements and controls were not adequately designed.
Effect – Failure to properly adhere to wage rate requirements for construction expenditures may result in
noncompliance with the provisions of applicable requirements of federal programs.
Questioned Costs – None reported
Context/Sampling – Three out of six construction expenditures in 2020 were selected for testing.
Repeat Finding from Prior Year(s) – No
Recommendation – Management should implement written policy procedures to ensure they are properly
adhering to wage rate requirements for construction expenditures for Impact Aid.
Views of Responsible Officials – There is no disagreement with the finding. Management has implemented
corrective action for wage rate requirements in fiscal year 2024.