Finding 625202 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-23
Audit: 51343
Organization: Regional School Unit No. 13 (ME)

AI Summary

  • Core Issue: The Unit failed to include wage rate certification in construction contracts and did not collect certified payrolls.
  • Impacted Requirements: Non-compliance with 29 CFR 5.5 regarding wage rate requirements for federal programs.
  • Recommended Follow-up: Implement internal controls to ensure compliance with wage rate certification and payroll collection 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 Department 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 Unit did not include wage rate certification requirement in contracts for construction projects and did not obtain copies of certified payrolls. Cause: The Unit 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 construction contracts 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 Unit. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit 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 RSU 13.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48759 2022-001
    Material Weakness
  • 48760 2022-001
    Material Weakness
  • 625201 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $996,239
84.010 Title I Grants to Local Educational Agencies $763,268
10.555 National School Lunch Program $753,490
84.027 Special Education_grants to States $444,047
84.287 Twenty-First Century Community Learning Centers $224,982
10.553 School Breakfast Program $152,992
84.358 Rural Education $110,419
10.565 Commodity Supplemental Food Program $55,456
84.002 Adult Education - Basic Grants to States $23,471
10.559 Summer Food Service Program for Children $9,110
10.582 Fresh Fruit and Vegetable Program $7,389