Finding 966584 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301042
Organization: Reynolds School District (OR)

AI Summary

  • Core Issue: The District failed to obtain certified payrolls for contractors under the ESSER grant, which is required for contracts over $2,000.
  • Impacted Requirements: Compliance with Davis-Bacon prevailing wage requirements was not ensured, potentially leading to underpayment of wages.
  • Recommended Follow-Up: Implement a system to withhold contractor payments until certified payrolls are received to ensure compliance.

Finding Text

SA-2023-001 – Significant Deficiency Federal Award Program – 84.425 Education Stabilization Fund (ESSER) Criteria - ESSER requires that for minor remodeling, renovation or construction contracts that are over $2,000and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Condition: The District did not get certified payrolls for many contractors within the ESSER grant. Questioned Costs: None. Cause: The reason for this is that the ESSER requirements are new and many entities did not know the limit for certified payrolls was lowered to $2,000. Effect: The effect is it is possible that some contractors did not pay prevailing wage.Recommendation: We recommend that the District put in place a system where invoices for contractors are not paid until they receive certified payrolls, or some sort of system that ensures compliance. Management’s Response: The District agrees with the finding and is putting a procedure in place to ensure certified payrolls are received on contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating)of public buildings or public works. Invoices for contractors will not be paid until certified payrolls are received.

Categories

Significant Deficiency

Other Findings in this Audit

  • 390139 2023-001
    Significant Deficiency
  • 390140 2023-001
    Significant Deficiency
  • 390141 2023-001
    Significant Deficiency
  • 390142 2023-001
    Significant Deficiency
  • 966581 2023-001
    Significant Deficiency
  • 966582 2023-001
    Significant Deficiency
  • 966583 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $1.57M
10.553 School Breakfast Program $1.01M
84.367 Improving Teacher Quality State Grants $462,115
84.424 Student Support and Academic Enrichment Program $326,032
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $209,293
84.365 English Language Acquisition State Grants $193,741
10.555 National School Lunch Program $183,457
10.558 Child and Adult Care Food Program $171,192
84.010 Title I Grants to Local Educational Agencies $157,910
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $33,415
10.582 Fresh Fruit and Vegetable Program $29,454
84.425 Education Stabilization Fund $26,909
93.658 Foster Care_title IV-E $9,579
84.060 Indian Education_grants to Local Educational Agencies $7,395
84.173 Special Education_preschool Grants $5,449
10.559 Summer Food Service Program for Children $1,602