Finding 943059 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-08
Audit: 289532
Organization: Isd#47 Sauk Rapids (MN)
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: A construction contract lacked the required prevailing wage language, violating federal funding criteria.
  • Impacted Requirements: Failure to include prevailing wage terms could jeopardize federal funding and compliance.
  • Recommended Follow-Up: Ensure all future contracts funded by federal awards include prevailing wage requirements; monitor compliance through designated oversight.

Finding Text

Audit Finding 2023-002 Criteria or Specific Requirement: Internal controls that assure all construction contracts entered into with federal awards have prevailing wage requirements. Condition: We selected a construction contract to test for prevailing wage requirements noting that this project had not met these requirements as prevailing wage verbiage was not included in the contract. Context: Construction contracts not following prevailing wage requirements could have been accepted. Effect or Potential Effect: Prevailing wage requirements could have not been met and would impact the amount of federal funding the District receives or the use of it on projects. Cause: The District did not oversee that prevailing wage requirements were included in contracts. Recommendation: Ensure the prevailing wage requirement are included in all construction contracts paid for with federal funds. Responsible Official's Response: CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding Change orders have been issued for the construction project, and contractors will be paid prevailing wages for the entire project. Internal control measures have been adjusted to identify construction projects funded by federal resources and to guarantee that project specifications include the necessary components for prevailing wages. 3. Official Responsible for Ensuring CAP Bradley Bergstrom is the official responsible for ensuring the corrective action of the deficiency. 4. Planned Completion Date for CAP Completed. 5. Plan to Monitor Completion of CAP The Director of Business Services will be monitoring the CAP.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 366617 2023-002
    Significant Deficiency
  • 366618 2023-002
    Significant Deficiency
  • 366619 2023-002
    Significant Deficiency
  • 366620 2023-002
    Significant Deficiency
  • 366621 2023-002
    Significant Deficiency
  • 366622 2023-002
    Significant Deficiency
  • 943060 2023-002
    Significant Deficiency
  • 943061 2023-002
    Significant Deficiency
  • 943062 2023-002
    Significant Deficiency
  • 943063 2023-002
    Significant Deficiency
  • 943064 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch $1.12M
84.425 Covid 19 - Elementary and Secondary School Education Relief (esser Ii) Fund $916,099
84.027 Special Education $534,403
84.010 Title I, Part A $405,650
10.553 School Breakfast $343,158
84.425 Covid 19 - Elementary and Secondary School Education Relief (esser Iii) Learning Loss $318,755
10.555 Commodities Programs $209,704
84.425 Covid 19 - Learning Recovery - Lost Instructional Time $193,737
84.027 Covid 19 - Arp Idea Part B - Section 611 $120,625
21.027 Covid-19 - Pandemic Enrollment Loss $97,223
84.367 Title Ii, Part A - Improving Teacher Quality $85,139
10.555 Covid 19 - Supply Chain Assistance $80,634
84.027 Idea Part B Section 611 Mandatory Coordinated Early Intervening Services (cluster) $66,835
21.027 Covid-19 - Arp Summer Academic Enrichment and Mental Health $65,015
84.048 Carl Perkins $52,402
84.186 Title Iv, Part A $31,775
84.027 Covid 19 - Arp Idea Part B Ceis - Mandatory $26,232
84.173 Covid 19 - Arp Idea Part B - Section 619 $18,019
84.425 Covid 19 - Expanded Summer Learning - Esser $14,249
84.425 Covid 19 - Elementary and Secondary School Education Relierf (esser) Fund $13,787
84.425 Covid 19 - Elementary and Secondary School Education Relief (esser Iii) Fund $10,000
84.173 Early Childhood Special Education $8,937
10.556 Special Milk $3,141
21.027 Covid-19 - Arp Adult Basic Education $907