Finding 7454 (2023-001)

U.S. Department of Education, Utah State Office of Education, Federal Financial Assistance Listing 84.425C, 84.425D and 84.425U, S425C210031, S425D210032, S425U210032 Special Tests and Provisions Material Weakness in Internal Control over Compliance and Compliance Criteria: Hawthorn Academy should have policies and procedures in place to ensure that the minor remodeling, renovation or construction contracts over $2,000 and use laborers or mechanics adhere to Davis-Bacon prevailing wage requirements. Condition: In connection with the audit procedures performed, it was noted that Hawthorn Academy failed to inform the contractor of the required Davis-Bacon prevailing wage requirements and no documentation was retained by either Hawthorn Academy or the contractor regarding the wages paid to laborers. Cause: Hawthorn Academy did not properly inform their contractor of the required Davis-Bacon requirements and no documentation was retained by either Hawthorn Academy or the contractor regarding wages paid to laborers. Effect: Hawthorn Academy is not in compliance with 84.425 Education Stabilization Funds special tests and provisions requirements. Questioned Costs: Unknown Context: In connection with the audit procedures performed, it was noted that Hawthorn Academy did not retain sufficient documentation to determine if laborers were paid Davis-Bacon prevailing wages. Repeat Finding from Prior Year: No Recommendation: Hawthorn Academy should monitor future minor remodeling, renovation or construction contracts over $2,000 and use laborers or mechanics and communicate with their contractors on the need to adhere to Davis-Bacon prevailing wage requirements and sufficient documentation should be maintained regarding the wages paid to laborers. Views of Responsible Officials: Management agrees with this finding.