Finding Text
2023-001 - Special Tests and Provisions - Wage Rate Requirements
Federal Program Information:
Department of Education:
Passed through the State of Maine Department of Education:
ALN - 84.425 - Education Stabilization Fund
Criteria: The following CFR applies to this finding: 29 CFR 5.5
Condition: During audit procedures, it was identified that the District did not include the prevailing wage rate clause in the contract provisions for construction contracts and did not obtain copies of certified payrolls.
Cause: The District does not have the necessary internal controls over compliance.
Effect: Contracts are not executed in compliance with the requirement above.
Identification of Questioned Costs: Identified question costs equaled construction projects totaling $154,592.79, all of which were performed without contracts containing the required clauses and without obtaining certified payrolls. It was noted that the projects were from prior fiscal year and not entered into during the fiscal year under audit.
Context: There were seven contracts. All seven were tested. No contract agreements were provided, therefore, it could not be determined that the prevailing wage rate clause was included. Of the seven contracts tested, certified payroll could not be provided for five of the contracts. This is not a statistically valid sample.
Repeat Finding: This is a repeat finding.
Recommendation: It is recommended that the District familiarize themselves with federal Wage Rate Requirements and implement internal control processes and procedures to ensure that they are following the criteria above.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by MSAD #27.