Finding 620816 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-13

AI Summary

  • Core Issue: The District lacked knowledge of the Davis Bacon Act requirement and did not implement necessary internal controls for compliance.
  • Impacted Requirements: Internal controls over compliance were not established for the federal program, affecting the verification of prevailing wage rates for contractors.
  • Recommended Follow-Up: Provide training for staff on federal program requirements and document compliance controls to ensure understanding and adherence.

Finding Text

AL 84.425 Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award ID: 64601, Award Year: July 1, 2022 ? June 30, 2022. Compliance requirement: Special Tests and Provisions. Criteria: Internal controls over compliance must be in place for every compliance requirement that the federal agency indicates is relevant to the program. Each federal program is generally limited to identifying no more than six of the 12 compliance requirements to be audited. For each of the six identified, however, the District is responsible for (1) determining if is relevant to their program and (2) if relevant, implementing control systems to ensure compliance. Condition and context: We were unable to find evidence that management knew of the Davis Bacon Act requirement or implemented internal controls over the compliance requirement. Cause: Based on responses to our inquiry, we believe the cause of a lack of knowledge and understanding of the program?s requirements. Effect: The District was unable to verify that the contractor paid their laborers prevailing wage rates as required. Recommendation: We recommend the District ensure that staff in charge of federal programs understand the program and obtain training prior to being given responsibility for federal programs. Each significant federal program should have its requirements documented and related compliance controls implemented and formally documented to ensure compliance with all relevant requirements. Views of responsible officials: District agrees with this recommendation. We will provide staff with additional training specific to Davis-Bacon wages and federal requirements.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $2.80M
84.425 Education Stabilization Fund $2.01M
84.299 Indian Education -- Special Programs for Indian Children $1.02M
10.553 School Breakfast Program $536,357
84.287 Twenty-First Century Community Learning Centers $376,460
84.027 Special Education_grants to States $331,872
93.667 Social Services Block Grant $238,227
84.060 Indian Education_grants to Local Educational Agencies $210,230
32.009 Emergency Connectivity Fund Program $209,160
10.555 National School Lunch Program $167,628
93.600 Head Start $137,458
10.558 Child and Adult Care Food Program $128,644
84.215 Fund for the Improvement of Education $101,614
84.010 Title I Grants to Local Educational Agencies $96,710
84.367 Improving Teacher Quality State Grants $86,232
10.666 Schools and Roads - Grants to Counties $79,437
84.358 Rural Education $53,485
84.424 Student Support and Academic Enrichment Program $35,389
12.110 Planning Assistance to States $15,940
84.365 English Language Acquisition State Grants $15,809
84.196 Education for Homeless Children and Youth $9,076
93.658 Foster Care_title IV-E $6,908
10.559 Summer Food Service Program for Children $5,675
10.649 Pandemic Ebt Administrative Costs $3,063
84.173 Special Education_preschool Grants $2,964