Finding 628223 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-10
Audit: 43307
Organization: Milford, Town of (ME)

AI Summary

  • Core Issue: The School Department failed to include the full required wage rate clause in a construction contract and some payrolls were incomplete.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Appendix II to Part 200 and 29 CFR 5.5.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all contracts and payrolls meet federal requirements.

Finding Text

2022-002 - 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: 2 CFR Appendix II to Part 200, 29 CFR 5.5. Condition: During audit procedures, it was identified that the School Department did not include the full required clause in a construction contract. Additionally, it was identified that some of the weekly payrolls did not include all the required elements or the accompanying Statement of Compliance. Cause: The Department?s procedures do not ensure that the construction contracts are conducted in compliance with the requirements above. Effect: Contracts are not executed in compliance with the requirement above. Identification of Questioned Costs: None identified. Context: One contract was reviewed and the certified payrolls were tested for two subcontracts. It was determined that the contract did not include the full contract provision and that the payrolls submitted for one subcontractor were missing some of the required elements and the certification. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Department implement internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Client agrees with finding and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the School Department.

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51780 2022-001
    Significant Deficiency
  • 51781 2022-002
    Significant Deficiency
  • 51782 2022-001
    Significant Deficiency
  • 51783 2022-002
    Significant Deficiency
  • 51784 2022-001
    Significant Deficiency
  • 51785 2022-002
    Significant Deficiency
  • 628222 2022-001
    Significant Deficiency
  • 628224 2022-001
    Significant Deficiency
  • 628225 2022-002
    Significant Deficiency
  • 628226 2022-001
    Significant Deficiency
  • 628227 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $252,736
21.027 Coronavirus State and Local Fiscal Recovery Funds $157,368
84.010 Title I Grants to Local Educational Agencies $147,902
84.027 Special Education_grants to States $84,734
10.553 School Breakfast Program $47,898
84.367 Improving Teacher Quality State Grants $20,319
10.582 Fresh Fruit and Vegetable Program $15,497
10.555 National School Lunch Program $10,018
97.044 Assistance to Firefighters Grant $4,500
84.424 Student Support and Academic Enrichment Program $2,012
10.551 Supplemental Nutrition Assistance Program $614