Finding 1149911 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-08-13

AI Summary

  • Core Issue: The Board failed to include prevailing wage rate clauses in construction contracts over $2,000 and did not submit certified payrolls for compliance with the Davis-Bacon Act.
  • Impacted Requirements: Noncompliance with the Davis-Bacon Act regarding wage rates and documentation, affecting federal funding eligibility.
  • Recommended Follow-Up: Implement controls to ensure compliance with the Davis-Bacon Act in future contracts and conduct a review of past projects for potential rectification.

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 (DOL) 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 Board entered into construction projects that did not include prevailing wage rate clauses nor were certified payrolls submitted to document compliance with the Davis-Bacon Act. The Board paid a total of $313,547.90 from COVID-19 Education Stabilization Funds without ensuring compliance with the David-Bacon Act. The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements. This finding was previously reported as Findin 2023-004.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 573466 2024-002
    Material Weakness
  • 573467 2024-003
    Material Weakness Repeat
  • 573468 2024-002
    Material Weakness
  • 573469 2024-003
    Material Weakness Repeat
  • 1149908 2024-002
    Material Weakness
  • 1149909 2024-003
    Material Weakness Repeat
  • 1149910 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.65M
84.010 Title I Grants to Local Educational Agencies $1.29M
84.027 Special Education Grants to States $921,643
10.553 School Breakfast Program $448,835
84.287 Twenty-First Century Community Learning Centers $334,513
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $231,604
84.424 Student Support and Academic Enrichment Program $90,819
10.555 National School Lunch Program $81,531
84.048 Career and Technical Education -- Basic Grants to States $80,198
15.659 National Wildlife Refuge Fund $72,709
10.582 Fresh Fruit and Vegetable Program $72,445
84.323 Special Education - State Personnel Development $59,915
84.173 Special Education Preschool Grants $42,448
84.365 English Language Acquisition State Grants $11,486
10.574 Team Nutrition Grants $7,136
96.001 Social Security Disability Insurance $700