Finding 64659 (2022-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-07

AI Summary

  • Core Issue: The District failed to include wage rate clauses in construction contracts and did not monitor certified payroll registers for compliance.
  • Impacted Requirements: This oversight violates Wage Rate Requirements under federal regulations for projects over $2,000.
  • Recommended Follow-Up: The District should review compliance requirements and establish a process for submitting wage rates and obtaining payroll records from contractors.

Finding Text

2022-003 Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200.326 Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management?s Response The District will plan to get payroll registers monthly from contractors moving forward.

Categories

Special Tests & Provisions

Other Findings in this Audit

  • 64657 2022-003
    Material Weakness
  • 64658 2022-003
    Material Weakness
  • 64660 2022-003
    Material Weakness
  • 64661 2022-003
    Material Weakness
  • 641099 2022-003
    Material Weakness
  • 641100 2022-003
    Material Weakness
  • 641101 2022-003
    Material Weakness
  • 641102 2022-003
    Material Weakness
  • 641103 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization Program $4.53M
84.027 Special Education_grants to States $2.08M
84.010 Title I Grants to Local Educational Agencies $1.10M
84.181 Special Education-Grants for Infants and Families $484,611
15.046 Administrative Cost Grants for Indian Schools $439,841
84.060 Indian Education_grants to Local Educational Agencies $420,885
10.553 School Breakfast Program $263,086
84.425 Education Stabilization Fund $219,686
84.367 Improving Teacher Quality State Grants $149,624
10.559 Summer Food Service Program for Children $149,595
84.041 Impact Aid $107,822
84.048 Career and Technical Education -- Basic Grants to States $69,533
84.371 Striving Readers $51,987
10.582 Fresh Fruit and Vegetable Program $40,994
84.287 Twenty-First Century Community Learning Centers $39,611
84.336 Teacher Quality Partnership Grants $37,492
10.555 National School Lunch Program $29,560
84.358 Rural Education $9,528
10.560 State Administrative Expenses for Child Nutrition $5,166
10.649 Pandemic Ebt Administrative Costs $3,063
15.151 Education Program Enhancements $1,251
84.424 Student Support and Academic Enrichment Program $150