Finding Text
Federal Program: Education Stabilization Fund (AL 84.425U); Special Tests – Wage Rates Requirements Criteria: The Uniform Guidance requires “all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor.” Furthermore, the Compliance requires the prevailing wage rate clauses be included in the contract or subcontract, and that the contractor or subcontractor submit the required certified payrolls weekly, for each week in which any contract work is performed. Condition: We noted during requesting of information that the District did not enter their HVAC project with a signed contract, which would have contained the correct wage rate verbiage. Furthermore, the District did not obtain the required certified payrolls for the contractor. Questioned Costs: None. Context: The District used ESSER funds to pay for an HVAC project at the district. We noted there was no contract between the vendor and the District so the required wage rate verbiage was omitted. We also noted that the District did not obtain the required certified payrolls. Effect: The District is not in compliance with Uniform Guidance’s wage rate requirements. Cause: The District does not have controls in place to ensure compliance with federal grant requirements. Repeat Finding: No. Recommendation: The District should implement policies and procedures to ensure all construction contracts in excess of $2,000 that are paid with federal funds follows the federal wage rate requirements. Views of Responsible Officials: The District agrees with the recommendation.