Finding Text
Finding Number: 2024‐001
Repeat Finding: No
Program Name/Assistance Listing Title: Impact Aid
Assistance Listing Number: 84.041
Federal Agency: Department of Education
Federal Award Number: N/A
Pass‐Through Agency: N/A
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Special Tests and Provisions
Criteria
According to Federal guidelines, §7007 construction funds, as well as any §7002 or §7003(b) funds expended for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b). 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
Certified payroll from the contractor or subcontractor was not submitted or reviewed for contracts in excess of $2,000 financed by Impact Aid funds.
Cause
The District was unaware that Impact Aid construction expenditures were subject to wage rate requirements.
Effect
The District could not demonstrate that prevailing wage rates were paid on all applicable projects during the year.
Context
For four Impact Aid funded projects, the District did not obtain or review contractor or subcontractor certified payroll.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The District should review all federally‐funded projects and determine which are subject to prevailing wage rate requirements. When applicable, the District should obtain certified payroll from contractors and subcontractors to determine that prevailing wage rate requirements are met.
Views of Responsible Officials
See Corrective Action Plan.