Finding 1081686 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-11

AI Summary

  • Core Issue: Contractors for three projects were paid without considering wage-rate provisions, violating federal requirements.
  • Impacted Requirements: All construction contracts over $2,000 must comply with prevailing wage rates set by the Department of Labor.
  • Recommended Follow-Up: District staff should thoroughly review award contracts and guidance to ensure all compliance requirements are met in the future.

Finding Text

2024-002 WAGE RATE REQUIREMENTS Federal Agency: U.S. Department of Education Federal Program Title: COVID-19 Elementary and Secondary School Emergency Relief Federal Award Identification Number: S425U210026 Pass-Through Agency: Kentucky Department of Education Pass-Through Entity Identifying Numbers: 473G Assistance Listing Number: 84.425 Award Period: March 24, 2021 to September 30, 2024 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 3141-3144, 3146, and 3147). Condition: We noted that the contractors for three projects were paid without wage-rate provisions being considered. These included a project to repair the sinks in the science area and teacher lounge, furnish and install tiling at the high school and HVAC improvements for the gym. Questioned Costs: None Cause: District staff did not that realize that these projects were defined as construction projects and subject to prevailing wage requirements. Effect: The District was not in compliance with wage rate requirements. Repeat Finding: No. Recommendation: We recommend that in the future District staff review award contracts and related guidance in detail to identify all compliance requirements that are applicable.

Categories

Subrecipient Monitoring Special Tests & Provisions

Other Findings in this Audit

  • 505240 2024-002
    Significant Deficiency
  • 505241 2024-003
    Significant Deficiency
  • 505242 2024-002
    Significant Deficiency
  • 505243 2024-003
    Significant Deficiency
  • 505244 2024-002
    Significant Deficiency
  • 505245 2024-003
    Significant Deficiency
  • 1081682 2024-002
    Significant Deficiency
  • 1081683 2024-003
    Significant Deficiency
  • 1081684 2024-002
    Significant Deficiency
  • 1081685 2024-003
    Significant Deficiency
  • 1081687 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $320,123
93.575 Child Care and Development Block Grant $150,000
84.010 Title I Grants to Local Educational Agencies $102,544
84.377 School Improvement Grants $84,620
10.553 School Breakfast Program $33,007
84.173 Special Education Preschool Grants $25,291
10.579 Child Nutrition Discretionary Grants Limited Availability $22,630
84.027 Special Education Grants to States $21,733
10.555 National School Lunch Program $19,957
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $19,215
10.559 Summer Food Service Program for Children $17,349
84.371 Comprehensive Literacy Development $16,150
10.582 Fresh Fruit and Vegetable Program $14,513
84.425 Education Stabilization Fund $2,304
10.560 State Administrative Expenses for Child Nutrition $445