2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan
2 C.F.R. § 3474.1 gives regulatory effect to the Department of Education for Appendix II to 2 C.F.R. § 200 which states that, in addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable:
(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 C.F.R. Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
29 C.F.R. § 5.5(a)(3)(ii)(A) provides, in part, that the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the (write in name of agency). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. 29 C.F.R. § 5.5(a)(3)(ii)(B) requires each payroll submitted be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract.
29 C.F.R. § 5.6 states that furthermore, no payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency after the beginning of construction unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of § 5.5 or unless there is on file with the agency a certification by the contractor that there is a substantial dispute with respect to the required provisions.
The School District had eight construction projects paid with Elementary and Secondary School Emergency Relief Funds. Two projects were selected for testing, and the following items were noted in regards to prevailing wages with these projects:
• Boiler and HVAC Phase III Project – This project involved four subcontractors that performed worked during the fiscal year. However, the School District only received prevailing wage documentation for two of the four subcontractors;
• South Boiler Project – The School District received prevailing wage documentation for the primary contractor; however, two subcontractors were utilized and the School District did not receive prevailing wage documentation for them.
The School District should implement procedures to ensure that all weekly payroll certification reports are received from the contractors and subcontractors. The School District should also review these reports to ensure that prevailing wages are properly paid. Additionally, the School District should ensure that all contractors and subcontractors are notified that prevailing wages must be paid as required by this compliance requirement.
Officials’ Response: See Corrective Action Plan
Sound accounting practices include the implementation of control procedures designed to prevent, detect and correct errors in financial statement or compliance reporting. This includes a system to track assets purchased from Federal funds that documents who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the 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.
The School District purchased 134 assets with Elementary and Secondary School Emergency Relief Funds (ESSER), which is part of the Education Stabilization Fund, Assistance Listing 84.425. Three out of 134, or 2.24%, were either not tracked within the School District inventory management system or were tracked with the incorrect Federal participation percentage. This could result in assets not being tracked which increases the risk of misappropriation. In addition, tracking assets at the incorrect Federal participation rate could result improper disposal outside of Federal requirements.
The School District should implement procedures to ensure that all assets are properly accounted for within their inventory system, and that all Federal reporting requirements are performed and documented within the system. This will help to mitigate risks of misappropriation, with other inventory controls being implemented, and ensure that all assets include proper documentation.
Officials’ Response: See Corrective Action Plan