Finding Text
Item 2024‐001 Special Tests and Provisions – Wage Rate Requirements (Repeat)
Education Stabilization Fund (ESF) ALN# 84.425U
U.S. Department of Education Passed through the State Department of Education
Grant period beginning during fiscal year ended September 30, 2021 (84.425U)
Criteria – Grantees should have controls in place to ensure that contractors and subcontractors are
notified of the requirement to pay prevailing wage rates to all laborers and mechanics employed on
construction contracts in excess of $2,000 financed by federal assistance funds and to submit
weekly certified payrolls for each week in which contract work is performed. 2 CFR 200.303
requires the non-Federal entity to “(a) establish and maintain effective internal controls over the
Federal award that provides reasonable assurance that the non-Federal entity is managing the
Federal statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.326
and 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed
and Assisted Construction (DOL Regulations) require the contractor or subcontractor to submit to
the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the
payroll and a statement of compliance (certified payrolls).
Condition – Adequate controls were not in place to ensure that contractors and subcontractors
provided timely certified payrolls throughout the construction projects.
Cause –There was a lack of sufficient controls over the communication of this requirement to
ensure the accuracy and completeness of the certified payrolls being provided to the Board.
Effect – Lack of supporting documentation could lead to disallowed costs. However, our audit
disclosed no instances of unallowable costs.
Questioned Costs – $27,406.
Recommendation – We recommend the strengthening of controls to ensure certified payrolls are
received for each week in which construction work is performed.
Management’s Response – The Board will strengthen the controls in place to provide assurance
that all certified payrolls are received each week in which construction work is performed.