Finding 596639 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-11

AI Summary

  • Core Issue: The District awarded a roofing contract over $2,000 without ensuring compliance with prevailing wage requirements for federal grants.
  • Impacted Requirements: Noncompliance with 29 CFR ? 5.5 may jeopardize current and future federal funding.
  • Recommended Follow-Up: Establish policies to ensure all contracts over $2,000 funded by federal grants include prevailing wage requirements.

Finding Text

29 CFR ? 5.5 requires that all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project. Due to the lack of an internal control over the awarding of contracts paid from Federal grants, the District issued a roofing contract in the amount of $252,548 of which approximately $100,000 was to be paid from the COVID-19 Education Stabilization Fund - AL 84.425 Federal grant, that did not require the payment of prevailing wages. During the fiscal year ended June 30, 2022 the District paid $25,000 from the COVID-19 Education Stabilization Fund - AL 84.425 Federal grant on this contract. Noncompliance with the requirements of Federal grants may result in the loss of current or future funding and possible questioned costs in future audits. The District should establish and implement policies and procedures for the issuance of contracts paid from Federal grants to ensure that such contracts in excess of $2,000 include the requirement to pay prevailing wages.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20195 2022-002
    Material Weakness
  • 20196 2022-002
    Material Weakness
  • 20197 2022-002
    Material Weakness
  • 596637 2022-002
    Material Weakness
  • 596638 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $756,790
84.425 Covid-19 Elementary and Secondary School Emergency Relief (esser I & Ii) Fund $388,303
84.027 Special Education_grants to States $381,831
84.010 Title I Grants to Local Educational Agencies $276,552
84.425 Covid-19 American Rescue Plan Elementary and Secondary School Emergency Relief (arp Esser) Fund $162,257
10.553 School Breakfast Program $146,198
10.556 Covid-19 Special Milk Program for Children $76,506
32.009 Covid-19 Emergency Connectivity Fund Program $73,745
84.027 Covid-19 Arp Special Education_grants to States $28,496
84.367 Supporting Effective Instruction State Grants $17,462
84.425 Covid-19 American Rescue Plan Elementary and Secondary School Emergency Relief Homeless Children and Youth (arp-Hcy) $3,314
45.310 Library Services and Technology Grants to States $2,299
84.424 Student Support and Academic Enrichment Program $1,500
10.649 Covid-19 Pandemic Ebt Administrative Costs $614