Finding 622519 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-29
Audit: 41494
Organization: School District of Random Lake (WI)

AI Summary

  • Core Issue: The District failed to include necessary contract provisions for compliance with Department of Labor wage rate regulations.
  • Impacted Requirements: Weekly certified payrolls were not submitted, leading to potential underpayment of laborers.
  • Recommended Follow-Up: The District should implement procedures to ensure compliance with wage rate requirements in future contracts.

Finding Text

2022 ? 003 ? Special Tests and Provisions ? Wage Rate Requirements Federal Agency: United State Department of Education Federal Program Name: COVID-19 Elementary and Secondary School Emergency Relief Funds Assistance Listing Number: 84.425D Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-594641-DPI-ESSERFII-163 Award Period: 03/13/2020 ? 09/30/2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria: The District is required to include in their construction contracts a provision that the contractor or subcontractor comply with the requirements of the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The District did not include provisions of the contract to comply with the Department of Labor regulations and certified payrolls were not obtained. Questioned costs: $4,008 Context: In our sample of one out of one contractor relationship, we did not identify the appropriate language in the contract nor were certified payrolls submitted during the year. Cause: The District was not aware of the wage rate requirements. Effect: Laborers may be paid a wage that is less than those established for the locality of the project by the Department of Labor. Recommendation: We recommend the District establish procedures and controls relating to wage rate requirements. View of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 46076 2022-003
    Material Weakness
  • 46077 2022-003
    Material Weakness
  • 622518 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $247,033
84.425 Education Stabilization Fund $207,974
93.778 Medical Assistance Program $191,566
10.553 School Breakfast Program $172,672
84.010 Title I Grants to Local Educational Agencies $85,124
10.555 National School Lunch Program $37,527
10.559 Summer Food Service Program for Children $24,099
84.367 Improving Teacher Quality State Grants $20,334
84.173 Special Education_preschool Grants $14,895
10.579 Child Nutrition Discretionary Grants Limited Availability $12,896
84.424 Student Support and Academic Enrichment Program $10,440
84.365 English Language Acquisition State Grants $5,075
84.048 Career and Technical Education -- Basic Grants to States $4,539