Zaneis School District C-072Local Government

Condition: Property acquired with federal funds were not tracked in property records. Criteria: 2 CFR 200.313(d)(1) requires property records must be maintained that include a description of the property, serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, the cost of the property, percentage of the federal project costs under which property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Cause: Failure to identify construction in progress as capital outlay for property. Context: Twenty five percent of population was not captured on the federal property report maintained by District. Effect: Noncompliance with Uniform Guidance. Recommendation: We recommend that property acquired with federal funds be properly tracked. We also recommend reconciliations procedures for property acquired with federal funds and the property listing for items acquired with federal funds. Views of Responsible Officials and Planned Corrective Action: The District will review federal expenditures of OCAS object codes to 700s and 450s at year end to the federal inventory listing to ensure all equipment has been captured as required by federal regulations.

Condition: Construction projects did not obtain certified payrolls documenting compliance with wage rate requirements. Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted construction requires that nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (Which still may be referenced as Davis-Bacon Act). Which includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each which in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Cause: Failure to understand requirements for federally funded construction projects. Context: Construction contracts to be paid with federal funds did not include wage rate requirements. In addition, required certified payrolls were not obtained. Effect: Noncompliance with Uniform Guidance Repeat Finding from Prior Year: No Recommendation: We recommend that the District obtain certified payrolls for all federally funded construction projects. We also recommend that federal funded contracts include required provisions. We also recommend that the District review all requirements for federal funds received to ensure compliance. Views of Responsible Officials and Planned Corrective Action: Typically District does not use federal funds for construction. These were renovations in response to COVID-19 and allowed expenditure of the program. The District will make sure when construction contracts are bid they let contractors know federal funds will be used and make sure the Contractor is able to comply with the requirement of certified payrolls to be submitted with all invoices submitted to District if federal funds are going to be used.