2 CFR ? 3474 gives regulatory effect to the Department of Education for Appendix II to 2 CFR ? 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 CFR 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. The contracts must also include a provision for compliance with the Copeland ?Anti-Kickback? Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ?Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States?). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 29 CFR ? 5.5(a)(3)(ii)(A) states, in part, that a contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution shall require a clause that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the agency. 29 CFR ? 5.6 further states, in part, Agencies which do not directly enter into such contracts shall promulgate the necessary regulations or procedures to require the recipient of the Federal assistance to insert in its contracts the provisions of ? 5.5. No payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency unless the agency insures that the clauses required by ? 5.5 and the appropriate wage determination of the Secretary of Labor are contained in such contracts. District Policy #6320- Purchasing and Bidding further states that the Superintendent must seek at least two (2) price quotations, unless fewer quotations are available, on purchases of any supplies, materials, and/or equipment costing more than $5,000 and that except as otherwise noted, procurement transactions relating to federal grants shall conform to the provisions of this policy and administrative guidelines. District Policy #6325- Procurement Federal Grants/Funds states that all Federally-funded contracts in excess of $2,000 related to construction, alterations, repairs, painting, decorating, etc. must comply with Davis-Bacon prevailing wage requirements. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $10,000. Micro-purchases may be made without soliciting competitive quotations if the Superintendent considers the price to be reasonable based on research, experience, purchase history or other relevant information, and documents are filed accordingly. The District shall maintain evidence of this reasonableness in the records of all purchases made by this method. District Policy #6111- Internal Controls provides that the Superintendent shall establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the District is managing all awards in compliance with applicable statutes, regulations and the terms and conditions of the awards. The internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and Federal reports; maintain accountability over assets; and demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The internal controls must also provide reasonable assurance that these transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal award, as well as any other Federal statutes and regulations that are identified in the compliance supplement. Sound accounting practices require public officials to design and operate a system of internal control that is adequate to provide reasonable assurance over the reliability of federal information provided for federal reimbursement. During Fiscal Year 2022, the District expensed federal dollars to a vendor in the amount of $47,427 for a construction project to replace old carpet with new flooring in multiple rooms at the High School using AL # 84.425D Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ESSER) funds. As a result of a lack of proper internal controls, the received documentation revealed that the required clauses concerning prevailing wage rate and the requirement that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the District were not included in the project contract. Furthermore, the District could not provide adequate support regarding price quotations for purchases exceeding $5,000 using Elementary and Secondary School Emergency Relief (ESSER) funds in accordance with applicable District policies and procedures, resulting in a control failure. Without proper controls over wage rate requirements and applicable District policies and procedures being followed, there is an increased risk that the District and its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should review its written internal control policies and procedures to ensure compliance with federal laws and regulations for construction contracts in excess of $2,000 including the provisions for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) and the required clauses of 29 CFR ? 5.5 where applicable. Furthermore, the District should ensure that expenditures and supporting documentation, including but not limited to quotations received, contracts, prevailing wage rates and certified payroll reports, are obtained and saved in accordance with applicable District policies and procedures.
2 CFR ? 3474 gives regulatory effect to the Department of Education for Appendix II to 2 CFR ? 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 CFR 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. The contracts must also include a provision for compliance with the Copeland ?Anti-Kickback? Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ?Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States?). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 29 CFR ? 5.5(a)(3)(ii)(A) states, in part, that a contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution shall require a clause that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the agency. 29 CFR ? 5.6 further states, in part, Agencies which do not directly enter into such contracts shall promulgate the necessary regulations or procedures to require the recipient of the Federal assistance to insert in its contracts the provisions of ? 5.5. No payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency unless the agency insures that the clauses required by ? 5.5 and the appropriate wage determination of the Secretary of Labor are contained in such contracts. District Policy #6320- Purchasing and Bidding further states that the Superintendent must seek at least two (2) price quotations, unless fewer quotations are available, on purchases of any supplies, materials, and/or equipment costing more than $5,000 and that except as otherwise noted, procurement transactions relating to federal grants shall conform to the provisions of this policy and administrative guidelines. District Policy #6325- Procurement Federal Grants/Funds states that all Federally-funded contracts in excess of $2,000 related to construction, alterations, repairs, painting, decorating, etc. must comply with Davis-Bacon prevailing wage requirements. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $10,000. Micro-purchases may be made without soliciting competitive quotations if the Superintendent considers the price to be reasonable based on research, experience, purchase history or other relevant information, and documents are filed accordingly. The District shall maintain evidence of this reasonableness in the records of all purchases made by this method. District Policy #6111- Internal Controls provides that the Superintendent shall establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the District is managing all awards in compliance with applicable statutes, regulations and the terms and conditions of the awards. The internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and Federal reports; maintain accountability over assets; and demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The internal controls must also provide reasonable assurance that these transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal award, as well as any other Federal statutes and regulations that are identified in the compliance supplement. Sound accounting practices require public officials to design and operate a system of internal control that is adequate to provide reasonable assurance over the reliability of federal information provided for federal reimbursement. During Fiscal Year 2022, the District expensed federal dollars to a vendor in the amount of $47,427 for a construction project to replace old carpet with new flooring in multiple rooms at the High School using AL # 84.425D Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ESSER) funds. As a result of a lack of proper internal controls, the received documentation revealed that the required clauses concerning prevailing wage rate and the requirement that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the District were not included in the project contract. Furthermore, the District could not provide adequate support regarding price quotations for purchases exceeding $5,000 using Elementary and Secondary School Emergency Relief (ESSER) funds in accordance with applicable District policies and procedures, resulting in a control failure. Without proper controls over wage rate requirements and applicable District policies and procedures being followed, there is an increased risk that the District and its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should review its written internal control policies and procedures to ensure compliance with federal laws and regulations for construction contracts in excess of $2,000 including the provisions for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) and the required clauses of 29 CFR ? 5.5 where applicable. Furthermore, the District should ensure that expenditures and supporting documentation, including but not limited to quotations received, contracts, prevailing wage rates and certified payroll reports, are obtained and saved in accordance with applicable District policies and procedures.
2 CFR ? 3474 gives regulatory effect to the Department of Education for Appendix II to 2 CFR ? 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 CFR 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. The contracts must also include a provision for compliance with the Copeland ?Anti-Kickback? Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ?Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States?). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 29 CFR ? 5.5(a)(3)(ii)(A) states, in part, that a contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution shall require a clause that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the agency. 29 CFR ? 5.6 further states, in part, Agencies which do not directly enter into such contracts shall promulgate the necessary regulations or procedures to require the recipient of the Federal assistance to insert in its contracts the provisions of ? 5.5. No payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency unless the agency insures that the clauses required by ? 5.5 and the appropriate wage determination of the Secretary of Labor are contained in such contracts. District Policy #6320- Purchasing and Bidding further states that the Superintendent must seek at least two (2) price quotations, unless fewer quotations are available, on purchases of any supplies, materials, and/or equipment costing more than $5,000 and that except as otherwise noted, procurement transactions relating to federal grants shall conform to the provisions of this policy and administrative guidelines. District Policy #6325- Procurement Federal Grants/Funds states that all Federally-funded contracts in excess of $2,000 related to construction, alterations, repairs, painting, decorating, etc. must comply with Davis-Bacon prevailing wage requirements. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $10,000. Micro-purchases may be made without soliciting competitive quotations if the Superintendent considers the price to be reasonable based on research, experience, purchase history or other relevant information, and documents are filed accordingly. The District shall maintain evidence of this reasonableness in the records of all purchases made by this method. District Policy #6111- Internal Controls provides that the Superintendent shall establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the District is managing all awards in compliance with applicable statutes, regulations and the terms and conditions of the awards. The internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and Federal reports; maintain accountability over assets; and demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The internal controls must also provide reasonable assurance that these transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal award, as well as any other Federal statutes and regulations that are identified in the compliance supplement. Sound accounting practices require public officials to design and operate a system of internal control that is adequate to provide reasonable assurance over the reliability of federal information provided for federal reimbursement. During Fiscal Year 2022, the District expensed federal dollars to a vendor in the amount of $47,427 for a construction project to replace old carpet with new flooring in multiple rooms at the High School using AL # 84.425D Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ESSER) funds. As a result of a lack of proper internal controls, the received documentation revealed that the required clauses concerning prevailing wage rate and the requirement that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the District were not included in the project contract. Furthermore, the District could not provide adequate support regarding price quotations for purchases exceeding $5,000 using Elementary and Secondary School Emergency Relief (ESSER) funds in accordance with applicable District policies and procedures, resulting in a control failure. Without proper controls over wage rate requirements and applicable District policies and procedures being followed, there is an increased risk that the District and its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should review its written internal control policies and procedures to ensure compliance with federal laws and regulations for construction contracts in excess of $2,000 including the provisions for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) and the required clauses of 29 CFR ? 5.5 where applicable. Furthermore, the District should ensure that expenditures and supporting documentation, including but not limited to quotations received, contracts, prevailing wage rates and certified payroll reports, are obtained and saved in accordance with applicable District policies and procedures.
2 CFR ? 3474 gives regulatory effect to the Department of Education for Appendix II to 2 CFR ? 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 CFR 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. The contracts must also include a provision for compliance with the Copeland ?Anti-Kickback? Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, ?Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States?). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. 29 CFR ? 5.5(a)(3)(ii)(A) states, in part, that a contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair of a public building or public work, or building or work financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution shall require a clause that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the appropriate agency if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the agency. 29 CFR ? 5.6 further states, in part, Agencies which do not directly enter into such contracts shall promulgate the necessary regulations or procedures to require the recipient of the Federal assistance to insert in its contracts the provisions of ? 5.5. No payment, advance, grant, loan, or guarantee of funds shall be approved by the Federal agency unless the agency insures that the clauses required by ? 5.5 and the appropriate wage determination of the Secretary of Labor are contained in such contracts. District Policy #6320- Purchasing and Bidding further states that the Superintendent must seek at least two (2) price quotations, unless fewer quotations are available, on purchases of any supplies, materials, and/or equipment costing more than $5,000 and that except as otherwise noted, procurement transactions relating to federal grants shall conform to the provisions of this policy and administrative guidelines. District Policy #6325- Procurement Federal Grants/Funds states that all Federally-funded contracts in excess of $2,000 related to construction, alterations, repairs, painting, decorating, etc. must comply with Davis-Bacon prevailing wage requirements. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $10,000. Micro-purchases may be made without soliciting competitive quotations if the Superintendent considers the price to be reasonable based on research, experience, purchase history or other relevant information, and documents are filed accordingly. The District shall maintain evidence of this reasonableness in the records of all purchases made by this method. District Policy #6111- Internal Controls provides that the Superintendent shall establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the District is managing all awards in compliance with applicable statutes, regulations and the terms and conditions of the awards. The internal controls must provide reasonable assurance that transactions are properly recorded and accounted for in order to permit the preparation of reliable financial statements and Federal reports; maintain accountability over assets; and demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The internal controls must also provide reasonable assurance that these transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal award, as well as any other Federal statutes and regulations that are identified in the compliance supplement. Sound accounting practices require public officials to design and operate a system of internal control that is adequate to provide reasonable assurance over the reliability of federal information provided for federal reimbursement. During Fiscal Year 2022, the District expensed federal dollars to a vendor in the amount of $47,427 for a construction project to replace old carpet with new flooring in multiple rooms at the High School using AL # 84.425D Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ESSER) funds. As a result of a lack of proper internal controls, the received documentation revealed that the required clauses concerning prevailing wage rate and the requirement that the contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the District were not included in the project contract. Furthermore, the District could not provide adequate support regarding price quotations for purchases exceeding $5,000 using Elementary and Secondary School Emergency Relief (ESSER) funds in accordance with applicable District policies and procedures, resulting in a control failure. Without proper controls over wage rate requirements and applicable District policies and procedures being followed, there is an increased risk that the District and its contractors and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. The District should review its written internal control policies and procedures to ensure compliance with federal laws and regulations for construction contracts in excess of $2,000 including the provisions for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) and the required clauses of 29 CFR ? 5.5 where applicable. Furthermore, the District should ensure that expenditures and supporting documentation, including but not limited to quotations received, contracts, prevailing wage rates and certified payroll reports, are obtained and saved in accordance with applicable District policies and procedures.