Finding Text
Finding 2024-006 – SPECIAL TESTS
Type: Significant Deficiency in internal control over compliance / Noncompliance – Prevailing Wage
Program: COVID 19 - Education Stabilization Fund (ALN 84.425U – ESSER III Formula)
Condition: The District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant.
Criteria: Per 2 CFR 200, Appendix II(D), 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.
Cause: Management oversight.
Effect: Wages paid for construction projects may have been paid below the prevailing wage requirements.
Recommendation: We recommend that the District review their process over awarding contracts paid with federal funds to ensure that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages were paid.
Management’s Resp: We are in agreement with this finding.