Audit 28670

Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000. Criteria: The ESF provides Federal funds for school facility repairs and improvements to reduce the risk of virus transmission and exposure to environmental health hazards, and to support student health needs. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The United States Department of Labor established ?prevailing wages? by geographic area and interprets the Davis-Bacon Act to apply to construction, alteration, or repair of public buildings or public work. Condition: During the 2021-22 fiscal year, the Board entered into four construction contracts totaling $464,323 for heating, ventilation, and air-conditioning (HVAC) renovation projects at the Bowling Green Elementary, Hardee Junior High, Hilltop Elementary, and Wauchula Elementary Schools. As of June 30, 2022, the District had expended ESF funds totaling $464,323 on the projects. Our examination of the project contracts disclosed that they did not contain prevailing wage rate clauses or require contractors to submit weekly certified payrolls. Also, according to District personnel, District procedures did not require them to verify that the contractors submitted certified payrolls. Subsequent to our inquiry, District personnel obtained certified payrolls for the projects from the HVAC contractors demonstrating that the prevailing wage rates were paid for these projects. Cause: District personnel indicated that the District typically complies with the Davis-Bacon Act for applicable Federally funded construction projects. However, because of oversights, the noncompliance occurred for these HVAC projects. Effect: Absent the required contract clauses and weekly certified payrolls, there is an increased risk that construction contractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Recommendation: The District should enhance procedures to ensure compliance with all Davis-Bacon Act requirements. Such procedures should ensure that applicable Federally funded facility contracts contain the prevailing wage rate clauses and require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. District Response: We agree with the finding. We have implemented new procedures to ensure compliance with Davis-Bacon Act requirements on applicable Federally-funded projects.

Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000. Criteria: The ESF provides Federal funds for school facility repairs and improvements to reduce the risk of virus transmission and exposure to environmental health hazards, and to support student health needs. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The United States Department of Labor established ?prevailing wages? by geographic area and interprets the Davis-Bacon Act to apply to construction, alteration, or repair of public buildings or public work. Condition: During the 2021-22 fiscal year, the Board entered into four construction contracts totaling $464,323 for heating, ventilation, and air-conditioning (HVAC) renovation projects at the Bowling Green Elementary, Hardee Junior High, Hilltop Elementary, and Wauchula Elementary Schools. As of June 30, 2022, the District had expended ESF funds totaling $464,323 on the projects. Our examination of the project contracts disclosed that they did not contain prevailing wage rate clauses or require contractors to submit weekly certified payrolls. Also, according to District personnel, District procedures did not require them to verify that the contractors submitted certified payrolls. Subsequent to our inquiry, District personnel obtained certified payrolls for the projects from the HVAC contractors demonstrating that the prevailing wage rates were paid for these projects. Cause: District personnel indicated that the District typically complies with the Davis-Bacon Act for applicable Federally funded construction projects. However, because of oversights, the noncompliance occurred for these HVAC projects. Effect: Absent the required contract clauses and weekly certified payrolls, there is an increased risk that construction contractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Recommendation: The District should enhance procedures to ensure compliance with all Davis-Bacon Act requirements. Such procedures should ensure that applicable Federally funded facility contracts contain the prevailing wage rate clauses and require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. District Response: We agree with the finding. We have implemented new procedures to ensure compliance with Davis-Bacon Act requirements on applicable Federally-funded projects.