Finding 620062 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-11
Audit: 49223
Organization: Msad #27 (ME)

AI Summary

  • Core Issue: The District failed to include the prevailing wage rate clause in construction contracts and did not obtain certified payrolls.
  • Impacted Requirements: This violates 29 CFR 5.5, which mandates compliance with wage rate requirements for federal programs.
  • Recommended Follow-Up: The District should establish internal controls to ensure compliance with wage rate criteria in future contracts.

Finding Text

2022-001 ? Special Tests and Provisions ? Wage Rate Requirements Federal Program Information: Department of Education: Passed through the State of Maine Agency of Education ALN ? 84.425 ? Education Stabilization Fund Criteria: The following CFR applies to this finding: 29 CFR 5.5 Condition: During audit procedures, it was identified that the District did not include the prevailing wage rate clause in the contract provisions for construction contracts and did not obtain copies of certified payrolls. Cause: The District does not have the necessary internal controls over compliance. Effect: Contracts are not executed in compliance with the requirement above. Identification of Questioned Costs: None identified. Context: There were two contracts for renovation projects and both were reviewed. It was determined that the contracts did not include the prevailing wage rate clause and that the contractor did not submit the certified payrolls to the District. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Maine School Administrative District 27.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43619 2022-001
    Material Weakness
  • 43620 2022-001
    Material Weakness
  • 43621 2022-001
    Material Weakness
  • 43622 2022-001
    Material Weakness
  • 620061 2022-001
    Material Weakness
  • 620063 2022-001
    Material Weakness
  • 620064 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $720,527
84.010 Title I Grants to Local Educational Agencies $278,339
84.027 Special Education_grants to States $229,637
84.358 Rural Education $34,521
84.002 Adult Education - Basic Grants to States $33,121
84.367 Improving Teacher Quality State Grants $13,181
84.173 Special Education_preschool Grants $5,742