Finding 958820 (2023-001)

2023-001 Special Tests Department of Education - COVID-19 Education Stabilization Fund (ESF) (ALN #84.425) Criteria: Recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet the Davis-Bacon prevailing wage clause. A control system should be in place to ensure certified payrolls are received and reviewed on a timely basis. Condition: The School Board did not have adequate internal controls to ensure that it received weekly certified payrolls from contractors and subcontractors it paid with this grant money. Questioned Costs: Not applicable Context: This condition is considered to be isolated in nature. Effect: Failure to comply with program requirements could result in loss of grant funding. Cause: The School Board did not have adequate controls in place to monitor compliance with prevailing wage requirements. Recommendation: We recommend that the School Board review its internal control policies to ensure that it receives and reviews the payroll certifications timely and program staff completes the review prior to release of payment to the contractor. The internal control policy should require some form of evidence that the review took place such as a signature on the certified payrolls by the reviewer. Views of responsible officials and planned corrective action: Maintenance will conduct training workshops for all administrators on the topic of the Davis Bacon Act. The specific requirements including applicability of the Act to project type signage, certified payroll, weekly payments, etc. will be part of the training agenda.