Finding 957240 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-18
Audit: 295518
Organization: Regional School Unit #4 (ME)

AI Summary

  • Core Issue: Wage rate requirements were not documented in construction contracts, and certified payrolls were not verified.
  • Impacted Requirements: Contracts over $2,000 must include prevailing wage clauses and require weekly certified payrolls to ensure compliance with federal funding regulations.
  • Recommended Follow-Up: Management should ensure all relevant contracts include wage rate clauses and that certified payrolls are collected and reviewed promptly.

Finding Text

Statement of Condition: Documentation of wage rate requirements in construction contracts and verification of certified weekly payrolls was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. In addition, language regarding wage rate requirements must be included in the contract. Cause: When performing our compliance testing, we discovered a construction contract that did not contain the prevailing wage rate clause and that certified payrolls were not received. Effect: Employees could potentially not be paid prevailing wage rates which could jeopardize grant funding. Recommendation: Management needs to ensure that all construction contracts with contractors in excess of $2,000 have a prevailing wage rate clause and that certified payrolls are received and reviewed in a timely manner. Questioned Costs: None Management Response/Corrective Action Plan: As recommended, the RSU will work to identify construction projects that require documentation of wage rates and certified weekly payrolls at the onset of any such projects. The Business Department, in conjunction with the Director of Operations and the Director of Technology, will work collaboratively on any such projects to collect and review said documentation.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 380798 2023-003
    Significant Deficiency
  • 380799 2023-003
    Significant Deficiency
  • 380800 2023-003
    Significant Deficiency
  • 957241 2023-003
    Significant Deficiency
  • 957242 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Elementary and Secondary School Emergency Relief #3 - Covid $1.27M
84.010 Title 1a Disadvantaged $516,169
84.027 Local Entitlement $399,653
10.555 National School Lunch Program $320,742
10.553 National School Lunch Program - Breakfast Program $98,756
84.367 Title Iia - Supporting Effective Instruction $94,425
10.555 National School Lunch Program - Donated Commodities $71,362
84.425 Governor Emergency Education Relief Funding (geer) - Waves - Covid $48,540
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $14,347
84.425 Crrsa Esser- Learning Loss- Learning Management Systems - Covid $10,289
84.173 Preschool Grants $7,445
84.027 Local Entitlement - Arp - Covid $6,930
10.582 Fresh Fruit and Vegetable Program $6,533
10.559 Summer Food Service Program $4,652
10.558 Pandemic Ebt Administrative Costs: Snap $3,140