Roswell Independent School District

2024-002 – Supplement not Supplant – Significant Deficiency ALN and Title: 84.010A – Title I Grants to Local Educational Agencies Pass-Through Entity: NM Public Education Department Identifying Number: 24101 Award Year: 2023-24 School Year Condition – The District signed certified Documentation of Compliance filed with the pass through entity choosing a methodology for distributing Title I funding to schools which was not followed. Criteria - Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Questioned Costs – No questioned costs. Effect - The Program Manager applied funding to four schools that didn’t fit the criteria, but were still eligible to receive funding based on 75% poverty. Cause – Poor communication led to the methodology actually adopted not matching the methodology documented on the certified compliance form.

2023‐003 – Special Test and Provision – Wage Rate Requirement – Material Weakness in Internal Controls over Compliance/Material Noncompliance ALN and Title: 84.425 COVID‐19 Education Stabilization Fund Pass‐Through Entity: NM Public Education Department Identifying Number: 24308, 24330, 24341 Award Year: 2022‐23 School Year Condition ‐ The District did not ensure contractor contracts had required language related to Wage Rate Requirements and did not maintain weekly certified payrolls. Criteria ‐ Per Title 2 US Code of Federal Regulations Part 200.303a, the non‐federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per Title 2 US Code of Federal Regulations Appendix II to Part 200, all contracts made by the non‐Federal entities under the federal award must contain provisions covering the following, (D) Davis‐Bacon Act, as amended (40 U.S.C. 3141‐3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non‐Federal entities must include a provision for compliance  with  the  Davis‐Bacon  Act  (40  U.S.C.  3141‐3144,  and  3146–3148)  as  supplemented  by  Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). Questioned Costs ‐ Actual and likely questioned costs of $355,556. Effect ‐ The District was not aware of the projects falling under the Wage Rate Requirements and did not  ensure  contracts  included  the  required  language  and  ensure  certified  payrolls  were  obtained  weekly. Cause ‐ The District could enter into a contract agreement with contractors who are not familiar with the Davis Bacon act and not follow requirements to pay laborers a prevailing wage weekly. This could lead to disallowed costs charged to the grant and/or repayment to the Grantor agency.