Finding 588110 (2023-002)

FINDING NUMBER: 14 2023 - 002 THIS FINDING IS: New Federal Program Name and Year: EDUCATION STABILIZATION FUND, 2023 Project No.: 2023-4998-E3, AL No.: 84.425U Passed Through: IL STATE BOARD OF EDUCATION Federal Agency: US DEPARTMENT OF EDUCATION Criteria or specific requirement (including statutory, regulatory, or other citation): The auditee should have a contract that declares prevailing wage will be paid to contractors and subcontractors. Condition: During major program testing, it was noted that the District did not have a contract with prevailing wage verbiage for a new heating and air conditioning project. Questioned Costs: NONE Context: During major program testing, it was noted that the District did not have a contract with prevailing wage verbiage for a heating and airconditioning project. Effect: Improper wages could be paid with federal grant money. Cause: The District did not have a contract with prevailing wage verbiage for a heating and air conditioning project. Recommendation: We recommend the District ensure that all construction contracts over $2,000 that are paid for with federal grant money include a declaration that prevailing wage will be paid. Management's response: We agree with the finding and have developed a corrective action plan.