Finding 619973 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-02

AI Summary

  • Core Issue: The District failed to include required wage rate clauses in construction contracts and did not submit certified payrolls on time.
  • Impacted Requirements: Compliance with Uniform Guidance and 2 CFR 656.40-656.41 was not met, increasing the risk of non-compliance.
  • Recommended Follow-Up: Management should implement controls to ensure adherence to all federal requirements moving forward.

Finding Text

Special Tests ? Wage Rate Requirement Material Weakness in Internal Control over Compliance Department of Education - Passed through North Dakota Department of Public Instruction 84.425 Education Stabilization Fund F84425D, F84425U, F84425W Criteria ? Uniform Guidance and 2 CFR 656.40 through 656.41 set forth the standards nonfederal entities other than states must follow when operating federal programs. Condition ? In our testing of special tests ? wage rate requirements, the District did not ensure proper and timely inclusion of prevailing wage rate clauses in two construction contracts and also did not obtain proper support to ensure required certified payrolls were submitted in a timely fashion. Cause ? Lack of oversight, awareness, or understanding of all of the specific requirements under Uniform Guidance and applicable CFR sections, and controls were not adequately designed to ensure compliance with all of these requirements. Effect ? Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs ? None reported. Context/Sampling ? Overall compliance requirement. Repeat Finding from Prior Years ? No. Recommendation ? We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials ? There is no disagreement with the audit finding.

Categories

Internal Control / Segregation of Duties Material Weakness Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 43530 2022-002
    Material Weakness
  • 43531 2022-002
    Material Weakness
  • 43532 2022-002
    Material Weakness
  • 43533 2022-002
    Material Weakness
  • 43534 2022-002
    Material Weakness
  • 619972 2022-002
    Material Weakness
  • 619974 2022-002
    Material Weakness
  • 619975 2022-002
    Material Weakness
  • 619976 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $4.97M
10.553 School Breakfast Program $2.05M
84.371 Striving Readers $1.13M
84.367 Improving Teacher Quality State Grants $1.01M
84.424 Student Support and Academic Enrichment Program $551,368
84.027 Special Education_grants to States $449,940
10.555 National School Lunch Program $419,214
10.582 Fresh Fruit and Vegetable Program $376,111
84.048 Career and Technical Education -- Basic Grants to States $311,238
84.002 Adult Education - Basic Grants to States $259,122
10.559 Summer Food Service Program for Children $239,082
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $106,193
84.369 Grants for State Assessments and Related Activities $103,069
84.060 Indian Education_grants to Local Educational Agencies $102,724
12.900 Language Grant Program $80,669
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $78,653
84.365 English Language Acquisition State Grants $68,883
84.173 Special Education_preschool Grants $66,338
93.576 Refugee and Entrant Assistance_discretionary Grants $33,599
32.009 Emergency Connectivity Fund Program $31,425
84.425 Education Stabilization Fund $27,874
93.566 Refugee and Entrant Assistance_state Administered Programs $26,069
10.560 State Administrative Expenses for Child Nutrition $17,205
84.196 Education for Homeless Children and Youth $6,130
10.558 Child and Adult Care Food Program $4,961
10.649 Pandemic Ebt Administrative Costs $3,063
10.527 New Beginnings for Tribal Students $1,606