Finding 977995 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-06-24

AI Summary

  • Core Issue: COVID-19 Education Stabilization Fund was misused for construction contracts over $2,000 without required wage rate clauses.
  • Impacted Requirements: Non-compliance with the Davis-Bacon Act, which mandates prevailing wage rates for certain contracts.
  • Recommended Follow-Up: Implement controls to ensure future contracts funded by ESF include necessary wage rate clauses and require certified payroll submissions.

Finding Text

Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. We recommend the Board implement controls to ensure they comply with the wage rate requirements when applicable. Management responds they will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESF) in excess of $2,000 specify applicability of wage rate requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Special Tests & Provisions

Other Findings in this Audit

  • 401553 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.16M
10.553 School Breakfast Program $784,054
84.287 Twenty-First Century Community Learning Centers $709,292
84.367 Improving Teacher Quality State Grants $369,784
10.579 Child Nutrition Discretionary Grants Limited Availability $186,603
84.027 Special Education_grants to States $186,433
10.558 Child and Adult Care Food Program $180,683
10.555 National School Lunch Program $142,738
84.048 Career and Technical Education -- Basic Grants to States $141,586
10.559 Summer Food Service Program for Children $103,287
12.357 Rotc Language and Culture Training Grants $69,997
84.365 English Language Acquisition State Grants $53,417
84.424 Student Support and Academic Enrichment Program $43,152
84.425 Education Stabilization Fund $26,298
84.196 Education for Homeless Children and Youth $24,677
96.001 Social Security_disability Insurance $2,060
84.173 Special Education_preschool Grants $746