FAC Explorer

Finding 985 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-31
Audit: 1863
Organization: Lawrence Public Schools (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: The District failed to provide proof that prevailing wages were paid for one of two construction projects.
  • Impacted Requirements: Compliance with 2 CFR 200, Appendix II(D) regarding contractor wage determinations.
  • Recommended Follow-Up: Review contract awarding processes to ensure inclusion of prevailing wage requirements and obtain necessary documentation.

Finding Text

2023-002 – SPECIAL TESTS Type: Significant Deficiency in Internal Control / Noncompliance – Prevailing Wage Program: COVID 19 - Education Stabilization Fund (ALN 84.425) – ESSER III Formula Funds Condition: The District was unable to provide evidence that prevailing wages were paid for one of two construction projects. Criteria: Per 2 CFR 200, Appendix II(D), contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Cause: Management oversight. Effect: Wages paid for construction projects may have been paid below the prevailing wage requirements. Questioned Costs: None. Recommendation: We recommend that the District review their process over awarding contracts paid with federal funds to ensure that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages were paid. Management’s Resp: We are in agreement with this finding.

Corrective Action Plan

All capital and repair project requests for proposals shall explicitly express language regarding Davis-Beacon / Prevailing Wage. The process for awarding bids (rubric) and contracts will be adjusted to include a section which references prevailing wage. Superintendent will continue working with the current vendor to gain assurances that prevailing wages were offered for labor on the FY 2023 project.

Categories

Internal Control / Segregation of Duties Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 577427 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $560,834
10.555 National School Lunch Program $255,945
84.010 Title I Grants to Local Educational Agencies $124,869
10.553 School Breakfast Program $99,463
84.367 Improving Teacher Quality State Grants $36,126
84.358 Rural Education $35,231
84.424 Student Support and Academic Enrichment Program $15,120
10.649 Pandemic Ebt Administrative Costs $628
93.778 Medical Assistance Program $182