Finding 583904 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-04

AI Summary

  • Core Issue: The District failed to include required wage rate clauses in construction contracts and did not collect certified payrolls from the contractor.
  • Impacted Requirements: Compliance with federal wage rate requirements for contracts over $2,000 funded by federal assistance.
  • Recommended Follow-Up: Implement policies to ensure all relevant contracts meet wage rate requirements and that certified payrolls are collected weekly.

Finding Text

Federal Program - Education Stabilization Fund (AL 84.425); Special Tests and Provisions - Wage Rate Requirements; Criteria - Uniform Guidance reqiures "all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance fund must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor." Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in any contract work is performed.; Condition - The District did not have the required wage rate requirement verbiage in the contract, and the District did not obtain the required certified payrolls from the contractor.; Questioned Costs - None; Context - We noted that the contract between this vendor and the District omitted the required wage rate requirements. We also noted that the required certified payrolls, which are required to be submitted weekly for each week of contract work, was not submitted.; Cause - Oversight by management.; Effect - The District is not in compliance with the "Wage Rate Requirements." It is alwso possible that workers did not get paid the appropriate wage.; Repeat Finding - No; Recommendation - We recommend the District implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follow the wage rate requirements.; Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 7460 2023-004
    Material Weakness
  • 7461 2023-004
    Material Weakness
  • 7462 2023-004
    Material Weakness
  • 583902 2023-004
    Material Weakness
  • 583903 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $361,042
10.553 School Breakfast Program $150,935
32.009 Emergency Connectivity Fund Program $44,189
84.367 Improving Teacher Quality State Grants $41,626
10.555 National School Lunch Program $39,152
10.559 Summer Food Service Program for Children $17,971
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,350
84.425 Education Stabilization Fund $9,167
84.181 Special Education-Grants for Infants and Families $8,011
10.582 Fresh Fruit and Vegetable Program $6,075
84.027 Special Education_grants to States $5,925
84.173 Special Education_preschool Grants $4,985
10.649 Pandemic Ebt Administrative Costs $628