Finding 618757 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-16

AI Summary

  • Core Issue: The district lacks formal policies requiring contractors to submit certified payrolls for construction contracts over $2,000, leading to noncompliance with federal regulations.
  • Impacted Requirements: Compliance with 29 C.F.R. § 5.5, which mandates prevailing wage clauses and weekly certified payroll submissions for applicable contracts.
  • Recommended Follow-Up: Update procurement policies to include necessary clauses for construction contracts, with a corrective action plan to be completed by June 30, 2023.

Finding Text

2022-006 Policies on Internal Control Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425C/84.425D/84.425U/84.425W Federal Award Identification Number and Year: N/A Pass-Through Agency: New Mexico Public Education Department Pass-Through Number(s): 24308/24316 Award Period: July 1, 2021-June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Per 29 C.F.R. ? 5.5 - Construction contracts greater than $2,000 must have a contract clause pertaining to prevailing wage rates. For each week in which work was performed under the contract, the contractor must be required to submit certified payrolls. Condition: During our audit of the Education Stabilization Fund program, we noted the following: ? The district did not have formal written policies or procedures in place for procurement to require contractors and subcontractors to submit certified payrolls for each week in which work was performed for construction contracts in excess of $2,000.. Questioned costs: None. Context: See ?Condition.? Cause: Management oversight. Effect: Noncompliance with applicable grant regulations. Recommendation: We recommend updating policies and procedures related to procurement to include the necessary clauses and requirements for construction contracts in excess of $2,000 when federal funds are being utilized. Views of responsible officials: A standard operating procedure (SOP) will be developed with the appropriate departments to ensure contractors are submitting their weekly payrolls to the District for any construction project that is federally funded or assisted in excess of $2,000.00. The Chief Procurement Officer will ensure the corrective action plan is completed by June 30, 2023.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 42314 2022-005
    Significant Deficiency
  • 42315 2022-006
    Significant Deficiency
  • 42316 2022-007
    Significant Deficiency
  • 618756 2022-005
    Significant Deficiency
  • 618758 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $10.58M
84.010 Title I Grants to Local Educational Agencies $8.29M
10.553 School Breakfast Program $4.71M
93.600 Head Start $3.90M
10.565 Commodity Supplemental Food Program $1.45M
84.367 Improving Teacher Quality State Grants $1.15M
84.371 Striving Readers $1.08M
84.424 Student Support and Academic Enrichment Program $668,491
10.582 Fresh Fruit and Vegetable Program $534,043
84.365 English Language Acquisition State Grants $253,544
10.556 Special Milk Program for Children $176,733
84.173 Special Education_preschool Grants $175,669
84.048 Career and Technical Education -- Basic Grants to States $103,667
84.011 Migrant Education_state Grant Program $70,957
84.425 Education Stabilization Fund $58,434
93.667 Social Services Block Grant $54,545
20.205 Highway Planning and Construction $47,333
84.196 Education for Homeless Children and Youth $29,802
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $16,194
84.027 Special Education_grants to States $3,691