Finding 1142169 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-06-23

AI Summary

  • Core Issue: The Russell County Board of Education failed to include prevailing wage rate clauses in a $7.65 million construction contract funded by federal COVID-19 assistance.
  • Impacted Requirements: The Board did not comply with the Davis-Bacon Act, which mandates certified payroll submissions and adherence to local wage rates for federally funded projects.
  • Recommended Follow-Up: Implement controls to ensure compliance with the Davis-Bacon Act in future contracts and establish a process for obtaining weekly certified payrolls from contractors.

Finding Text

Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The 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 locality of project (prevailing wage rates) by the Department of Labor and the contractor or subcontractor must 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). During fiscal year 2024, the Russell County Board of Education (the “Board”) entered into a construction project totaling $7,651,000.00 that did not include prevailing wage rate clauses. As of September 30, 2024, the Board expended $1,317,608.54 of COVID-19 Education Stabilization Funds (Elementary and Secondary School Emergency Relief (ARP ESSER) Fund on the project that included multiple subcontractors. The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts, therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 565727 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.73M
10.553 School Breakfast Program $1.18M
84.027 Special Education Grants to States $934,048
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $192,353
10.582 Fresh Fruit and Vegetable Program $154,914
84.041 Impact Aid $118,814
84.424 Stronger Connections Grant $118,704
10.555 National School Lunch Program $99,554
84.048 Career and Technical Education -- Basic Grants to States $95,068
84.424 Student Support and Academic Enrichment Program $90,914
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $75,634
12.U01 Army Rotc $46,461
84.196 Education for Homeless Children and Youth $37,640
84.425 Education Stabilization Fund $26,693
10.574 Team Nutrition Grants $11,174
84.173 Special Education Preschool Grants $7,409
96.001 Social Security Disability Insurance $720