Finding Text
SA-2024-001 – Significant Deficiency
FEDERAL PROGRAM: 84.425 Elementary and Secondary Education Emergency Relief Fund
SPECIFIC REQUIREMENT: Recipients and sub-recipients that use ESF funds for remodeling, renovation, or
construction projects over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage
requirements.
CONDITION: The District did not collect the certified payroll reports from the contractors during the year under
audit.
QUESTIONED COSTS: None.
CONTEXT: The finding is limited to this major program and the context noted in the condition.
EFFECT: Without certified payroll reports being collected there exists the possibility that prevailing wages were
not met.
CAUSE: Certified payroll reports from the contractors were not obtained during the year under audit.
RECOMMENDATION: We recommend the District collect and review certified payroll reports from contractors
for construction projects with labor funded through federal dollars as the project is happening.
VIEWS OF RESPONSIBLE OFFICIALS: Certified payrolls are being collected for each subcontractor. A system
for tracking of certified payrolls will be implemented prior to June 30, 2025.