Finding 1074556 (2023-001)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 PassThrough Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 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 (DOL) (40 USC §§31413144, 3146, and 3147). Condition It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The District was not aware of all of the prevailing wage requirements applied to its construction contracts. Effect The District did not comply with the special tests and provisions requirements of the grant. Context For two of two construction contracts reviewed, the District did not require the contactor or subcontractor to submit the required certified payroll for each week work was performed. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review federal requirements over prevailing wages, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.