Finding 582173 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-20

AI Summary

  • Core Issue: Contractors are not submitting certified payrolls weekly as required by federal guidelines.
  • Impacted Requirements: Weekly submission of payroll and compliance statements is not enforced, leading to delays and incomplete records.
  • Recommended Follow-Up: The District should establish clear policies to ensure all vendors submit certified payrolls weekly during active work periods.

Finding Text

Federal Program: Education Stabilization Fund (AL 84.425) Wage Rate Requirements Criteria:Uniform Guidance stated “the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls)”. Condition: We noted during inquiry and testing that contractors were not being required to submit their certified payrolls on a weekly basis to the engineering firm that oversaw the construction of the technical building. Furthermore, we noted vendors that were not under the scope of the engineer did not submit the required certified payrolls directly to the district. Questioned Costs: None Context : During internal control inquire we noted that contractors were required to submit all certified payrolls for their first pay application and if they were correct, they were not required to submit them again until the end of the project. We tested a total of 14 certified payrolls and were able to verify that 2 were submitted 7 months after the ending work week, 1 was 5 months after, and another was 3 months after. We also noted that one vendor that was not under the scope of the engineer but dealt directly with the district did not submit any certified payrolls. Cause: Oversight by management. Effect: The required certified payrolls were not being submitted per federal requirements. Repeat Finding: No Recommendation: The District should implement policies and procedures to ensure any vendor that is required to submit certified payrolls are submitting them every week, when work is performed. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the recommendation and will review its policies and procedures.

Categories

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 5730 2023-003
    Significant Deficiency
  • 5731 2023-003
    Significant Deficiency
  • 5732 2023-003
    Significant Deficiency
  • 582172 2023-003
    Significant Deficiency
  • 582174 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $252,199
10.553 School Breakfast Program $89,664
10.579 Child Nutrition Discretionary Grants Limited Availability $34,850
84.367 Improving Teacher Quality State Grants $29,090
10.555 National School Lunch Program $26,730
84.060 Indian Education_grants to Local Educational Agencies $22,143
15.130 Indian Education_assistance to Schools $16,997
84.425 Education Stabilization Fund $13,927
84.358 Rural Education $12,790