Finding Text
50000 – Special Tests and Provisions (Material Weakness in Internal Control Over Compliance, Material Noncompliance)
Federal Agency: U.S. Department of Education
Pass-Through Agency: California Department of Education
Program Name: Education Stabilization Fund
Federal Financial Assistance Listing: 84.425C, 84.425D, 84.425U, 84.425W
Compliance Requirement: N – Special Tests and Provisions – Wage Rate Requirement
Type of Finding: Material weakness and material noncompliance
Criteria or Specific Requirements
In accordance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV sections 3142 and 3145, each contract in excess of $2,000 to which the Federal Government or the District of Columbia is a party, for construction, alteration, or repair, shall contain a prevailing wage provision. In addition, each contractor and subcontractor shall be required to submit a weekly statement on the wages paid.
Condition
The District did not include the prevailing wage rate requirement clause in the one of four contracts for the construction project completed during the period using the program. In addition, for three of four the weekly certified payrolls were not submitted by the contractor.
Cause
No specific cause was identified other than oversight.
Effect
The County is not in compliance with U.S. Code Title 40 Subtitle II Part A Chapter 31 Subchapter IV section 3145.
Questioned Costs
There are no questioned costs associated with the condition identified.
Context/Sampling
A nonstatistical sample of four out of 11 total construction projects completed using the program funds were selected for testing.
Repeat Finding
No.
Recommendation
The District should assign a responsible member of management to ensure that all contractors and subcontractor submit required certified payrolls weekly. In addition, the District should ensure that all construction contracts funded by the program include the prevailing wage rate requirement clause.