Finding Text
2024-005 FINDING
Federal Program
Education Stabilization Fund (AL 84.425)
Special Tests- Wage Requirements
Criteria
Per Uniform Guidance, “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
During review of the program expenditures, the District had several transactions that required them to obtain
certified payrolls from contractors and we noted this was missed.
Questioned Costs
None
Context
During testing, we noted that the district paid one contractor $54,200 for demo and the re-construction of a
sidewalk. We also noted that the district paid another contractor $15,855 for a new partition between 2 rooms,
from which, $11,550 of this was for labor.
Cause
The District does not have controls in place to ensure that wage rate requirements are being followed.
Effect
Payments to contracted employees may not be in compliance with wage rate requirements.
Repeat Finding
No.
Recommendation
The District should implement policies and procedures to ensure all transactions that qualify for wage rate
requirements are identified to ensure compliance.
Corrective Action Taken
The District agrees with the recommendation and will review its policies and procedures.