Finding 7689 (2023-004)

Federal Agency: United State Department of Education Federal Program Name: COVID-19 Elementary and Secondary School Emergency Relief Funds Assistance Listing Number: 84.425D Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-594641-DPI-ESSERFII-163 and 2022-594641-DPI-ESSERFIII-165 Award Period: 03/13/2020 – 09/30/2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The District is required to include in their construction contracts a provision that the contractor or subcontractor comply with the requirements of the Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: The District did not include provisions of the contract to comply with the Department of Labor regulations and certified payrolls were not obtained in a timely manner. Questioned costs: None. Context: In our sample of one out of one contractor relationship, we did not identify the appropriate language in the contract nor were certified payrolls submitted in a timely manner during the year. Cause: The District was not aware of the wage rate requirements. Effect: Laborers may be paid a wage that is less than those established for the locality of the project by the Department of Labor. Repeat finding: Repeat of Finding 2022-003 Recommendation: We recommend the District establish procedures and controls relating to wage rate requirements. View of responsible officials: There is no disagreement with the audit finding.