Finding 610735 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-01
Audit: 33193
Organization: Hart Public Schools (MI)

AI Summary

  • Core Issue: The School District's construction contract lacked required clauses for paying prevailing wages weekly.
  • Impacted Requirements: Compliance with federal regulations (Uniform Guidance) on wage rate requirements for federally funded contracts.
  • Recommended Follow-Up: Review and update all construction contracts to include prevailing wage clauses and ensure weekly certifications from contractors.

Finding Text

U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions

Other Findings in this Audit

  • 34292 2022-001
    Significant Deficiency
  • 34293 2022-001
    Significant Deficiency
  • 34294 2022-001
    Significant Deficiency
  • 34295 2022-002
    - Repeat
  • 34296 2022-002
    - Repeat
  • 34297 2022-002
    - Repeat
  • 34298 2022-002
    - Repeat
  • 610734 2022-001
    Significant Deficiency
  • 610736 2022-001
    Significant Deficiency
  • 610737 2022-002
    - Repeat
  • 610738 2022-002
    - Repeat
  • 610739 2022-002
    - Repeat
  • 610740 2022-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $400,028
84.011 Migrant Education_state Grant Program $362,425
84.010 Title I Grants to Local Educational Agencies $341,859
32.009 Emergency Connectivity Fund Program $214,650
10.553 School Breakfast Program $211,812
10.555 National School Lunch Program $54,902
84.424 Student Support and Academic Enrichment Program $43,472
84.367 Improving Teacher Quality State Grants $36,272
10.558 Child and Adult Care Food Program $27,207
84.358 Rural Education $27,108
84.425 Education Stabilization Fund $15,923
10.559 Summer Food Service Program for Children $7,721
84.365 English Language Acquisition State Grants $5,852
10.649 Pandemic Ebt Administrative Costs $3,063
10.665 Schools and Roads - Grants to States $2,846