Boyceville Community School DistrictLocal Government

Finding 2022-003: Material Weakness ? Controls and Compliance over Special Tests and Provisions Program: COVID-19 Education Stabilization Fund Assistance Listing Number: 84.425D/84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141?3144, 3146, and 3147). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition: Certified payrolls were not obtained or reviewed by the District. Cause: The District was not aware of this specific requirement. Effect: Federal funds may be paid to a contractor or subcontractor that pays wages less than the prevailing wage rates. Questioned Costs: None noted. Context: Program expenditures for fiscal 2022 included one construction contract. Recommendation: We recommend that the District implement a process to obtain certified payrolls when using federal funds on construction contracts. Once the certified payrolls are obtained, the District should review them as outlined by the applicable federal regulations and retain documentation of their conclusion. Views of responsible officials: The District will implement a process to obtain, review and retain certified payrolls if ever using federal funds on future construction contracts in excess of $2,000. The District has since received and reviewed the certified payrolls and determined the contractor is in compliance.

Federal Program ? Medical Assistance Program (Medicaid Cluster) Federal Agency ? U.S. Department of Health and Human Services Pass-Through Entity ? CESA CFDA Number ? 93.778 Pass-Through Agency ID ? 44236000 Award Year ? 2020 Criteria: A system or process should be in place to achieve adequate review and approval of reports prior to submission. This review should be documented. Condition/Context: No evidence of review or approval by administration was noted on the quarterly financial reports tested. Two of the four quarterly financial summary reports and the annual report were tested. Cause: The quarterly financial reports and the annual cost report were not reviewed or approved prior to the submission of the reports to the Public Consulting Group of the State of Wisconsin. The electronic version of the report does not require a secondary approval in order to submit. Effect: Because of the lack of internal controls, it is less likely that errors or irregularities to the Medical Assistance Program would be discovered internally prior to reporting to the state. This could lead to errors and overpayment to the school district. Questioned Costs: None noted. Recommendation: The administrator should review a printed (or electronically printed) version of the report and sign for approval. Review and approval should occur shortly after the time of preparation. Views of Responsible Officials: Beginning with the 2021 fiscal year, all quarterly financial reports and the annual cost report will be reviewed and approved by the District Administrator.