SIERRA VISTA UNIFED SCHOOL DISTRICT NO. 68

2025-007: WAGE RATE REQUIREMENTS Program: Impact Aid Federal Assistance Listing Number: 84.041 Federal Agency: U.S. Department of Education Pass-Through Agency: Direct award Grantor Number: Not applicable Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: N. Special Tests and Provisions – Wage Rate Requirements Condition: During our testing of five of 5 contractors funded under the Impact Aid program, we noted that the District did not obtain or review certified payroll reports from contractors to verify compliance with federal prevailing wage requirements. As a result, the District could not demonstrate that contractors complied with required wage provisions for the sampled projects. Criteria or Specific Requirement: Federal regulations require that contractors and subcontractors performing work on federally funded construction projects pay laborers and mechanics wages at rates not less than those prevailing on similar projects in the locality. These requirements are established under the Davis-Bacon Act and incorporated into federal grant compliance requirements under 2 CFR Part 200. Adequate monitoring of compliance with these wage requirements is required to ensure that workers are being paid correctly per 29 CFR 5.5 compliance provisions. Per 2 CFR section 200.303(a), a non-Federal entity must establish and maintain effective internal control over 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 comply with guidance in “Standards for Internal Control in 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). Cause: The district did not have established procedures to ensure that certified payroll documentation was obtained and reviewed for federally funded construction projects. District personnel were not aware that federal wage requirements applied to the project. Effect: Failure to ensure compliance with federal prevailing wage requirements may result in laborers and mechanics being paid less than required wage rates. This noncompliance could result in questioned costs, repayment of federal funds, or other sanctions by the awarding agency. Repeat Finding: No. Recommendation: We recommend the District implement policies and procedures to ensure effective monitoring of compliance with Federal wage rate requirements. This includes obtaining required wage determinations prior to project commencement, including wage requirements in contract documents, and collecting certified payroll reports from contractors. Views of Responsible Officials: The District concurs with this recommendation and will review its procedures over compliance with wage rate requirements under the Davis Bacon Act.

2024-003 REPORTING Program: Child Nutrition Cluster CFDA Number: 10.533, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $18.50 Type of Finding: Noncompliance, significant deficiency Compliance Requirement: L. Reporting Condition/Context: For two of 3 monthly submissions tested, meal counts did not agree between the District’s records and what was reported to ADE. There was a net of 3 meals over claimed by the District. Criteria: The District must follow Uniform Guidance and ensure that meal reimbursement claims are accurately reported and adequately supported. Cause: Clerical error. Effect: Noncompliance and internal control weakness. Repeat Finding: No. Recommendation: We recommend that the District establish internal control procedures over the reconciliation of meal counts reports to ADE. The District should ensure records maintained within the District’s system match with what gets reported to ADE and any variances are resolved. View of Responsible Official: The District’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.