Finding 614548 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: The District failed to include a prevailing wage clause in contracts for a construction project funded by the Education Stabilization Fund, leading to non-compliance with wage rate requirements.
  • Impacted Requirements: Wage rate requirements apply to construction contracts over $2,000, necessitating certified payrolls and compliance with local prevailing wage rates.
  • Recommended Follow-Up: Implement controls to ensure future contracts include prevailing wage clauses and verify if past contractors complied with wage rates for reimbursed costs.

Finding Text

Finding #2022-002 ? Education Stabilization Fund ? ESSER II (#84.425D) and ESSER III (#84.425U) Condition: There was Education Stabilization Fund construction performed by a contractor. Grant expenditures for the project totaled $170,925. There was not a prevailing wage clause in the contracts and certified payrolls were not received. Effect: A reimbursement request was made for expenditures that did not comply with wage rate requirements. Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Questioned Costs: $170,925. Context: The construction projects began and were completed in June 2022 before the District was aware of wage rate requirements. After becoming aware of the requirement, there were no further construction projects. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Consider determining if the contractor performing the project in 2021-2022 paid prevailing wage rates for costs reimbursed by the grant. Response: The District became aware of wage rate requirements after finishing the project. Before bidding any future construction project more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received for any such contracts.

Categories

Questioned Costs Procurement, Suspension & Debarment Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 38099 2022-001
    Significant Deficiency Repeat
  • 38100 2022-001
    Significant Deficiency Repeat
  • 38101 2022-001
    Significant Deficiency Repeat
  • 38102 2022-002
    Material Weakness
  • 38103 2022-001
    Significant Deficiency Repeat
  • 38104 2022-002
    Material Weakness
  • 38105 2022-001
    Significant Deficiency Repeat
  • 38106 2022-002
    Material Weakness
  • 38107 2022-001
    Significant Deficiency Repeat
  • 38108 2022-001
    Significant Deficiency Repeat
  • 614541 2022-001
    Significant Deficiency Repeat
  • 614542 2022-001
    Significant Deficiency Repeat
  • 614543 2022-001
    Significant Deficiency Repeat
  • 614544 2022-002
    Material Weakness
  • 614545 2022-001
    Significant Deficiency Repeat
  • 614546 2022-002
    Material Weakness
  • 614547 2022-001
    Significant Deficiency Repeat
  • 614549 2022-001
    Significant Deficiency Repeat
  • 614550 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $226,117
93.778 Medical Assistance Program $155,859
10.553 School Breakfast Program $137,843
81.041 State Energy Program $130,000
32.009 Emergency Connectivity Fund Program $50,000
84.027 Special Education_grants to States $37,524
10.555 National School Lunch Program $36,131
84.424 Student Support and Academic Enrichment Program $13,806
84.048 Career and Technical Education -- Basic Grants to States $7,687
84.173 Special Education_preschool Grants $4,255
84.425 Education Stabilization Fund $2,302
84.367 Improving Teacher Quality State Grants $750
10.649 Pandemic Ebt Administrative Costs $614