Finding 626920 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-16
Audit: 51225
Auditor: Yeo & Yeo PC

AI Summary

  • Core Issue: The District lacks controls to ensure contractors comply with the Davis-Bacon Act for prevailing wage payments.
  • Impacted Requirements: Contractors must pay laborers according to the prevailing wage rates and provide weekly payroll records.
  • Recommended Follow-Up: Implement internal controls to monitor compliance with the Davis-Bacon Act.

Finding Text

Program Information: Education Stabilization Fund, U.S. Department of Education, passed through Michigan Department of Education, Assistance Listing #84.425. Pass-Through Grantor #213712 and 213713. Criteria: The Davis-Bacon Act (23 U.S.C. 113) requires contractors and subcontractors performing work on federal contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract?s wage determination class. Each covered contractor and subcontractor must, on a weekly basis, provide a copy of the payroll providing the information listed under recordkeeping for the preceding weekly payroll period. Condition: The District did not have controls in place to determine if contractors are complying with the Davis-Bacon Act regarding the payment of prevailing wage rates. Questioned Costs: None. Cause and Effect: The District was unaware that monitoring compliance with the Davis-Bacon Act regarding the payment of prevailing wage rates was a responsibility of the District. The District therefore had no assurance that the wages paid were in compliance with the Davis-Bacon Act. Recommendation: We recommend that the District implements internal controls to ensure compliance with the requirements over the Davis-Bacon Act. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50478 2022-002
    Significant Deficiency
  • 50479 2022-002
    Significant Deficiency
  • 626921 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $379,238
84.425U Education Stabilization Fund $232,092
84.425D Education Stabilization Fund $188,974
21.019 Coronavirus Relief Fund $66,935
84.010 Title I Grants to Local Educational Agencies $56,080
10.553 School Breakfast Program $20,321
84.367 Improving Teacher Quality State Grants $12,756
84.424 Student Support and Academic Enrichment Program $10,996
93.778 Medical Assistance Program $10,372