Finding 10229 (2023-001)

Compliance over Major Federal Programs Compliance requirement: Wage Rate Requirements Program: Education Stabilization Fund CFDA Number: 84.425 Criteria: OMB Uniform Guidance Compliance Supplement Section 4-20.001 requires all laborers and mechanics employed by contractors or subcontractors who work on construction contracts in excess fo $2,000 financied by Federal assistance funds must be paid wages not less than those established for the locality of the project by the Department of Labor. Condition: The District did not provide certified payroll reports from contractors for the HVAC project. Questioned Cost: Unknown Cause: The District did not require contractors to prepare and provide certified payroll reports to ensure compliance with prevailing wage rate for the locality. Effect: The District could be held liable by contractor employees for any wage amounts paid that were less than the prevailing wage rate for the locality. Recommendation: The district should request and retain certified payroll reports from contractors for the HVAC project. The District should determine if the prevailing wage rate was paid to the contractor employees. The District should consult legal counsel if underpayments are discovered. Management Views: Managements views and Corrective Action plan are included at the end of this report.