Finding 1123392 (2024-001)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2024-001 Repeat Finding: Yes, 2023-001 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 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 It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The District was unaware prevailing wage requirements applied to their construction contract. Effect The District did not comply with the special tests and provisions requirements of the grant. Context For two of two construction contracts reviewed, the District did not require the contractor or subcontractor to submit the required certified payroll for each week that work was performed. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review federal requirements over prevailing wages, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.