Finding Text
ASSISTANCE LISTING NUMBER AND TITLE: 84.425-Education Stabilization Fund FEDERAL AWARDING AGENCY: U. S. Department of Education PASS-THOUGH ENTITY: Alabama Department of Education TYPE: Internal Control and Compliance CRITERIA: Title 29, U.S. Code of Federal Regulations, Subtitle A, Part 5, Subpart A-Davis Bacon and Related Acts Provisions and Procedures requires that any construction contract in excess of $2,000 that is funded wholly or in part by federals funds include prevailing wage rate clauses. The laborers and mechanics employed by contractors or subcontractors to work on construction contract 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 and the contractor or subcontractor must submit to the nonfederal entity weekly, for each week in which any contract is performed, a copy of the payroll and a statement of compliance (certified payrolls). CONDITION: The Board had expenditures under a construction contract that did not include the prevailing wage rate clauses nor were required certified payrolls submitted to the Board that documented compliance with these regulations. CAUSE: Incomplete implementation of Federal regulations. POSSIBLE ASSERTED EFFECT: The Board failed to comply with the Special Tests and Provisions set forth in the OMB Compliance Supplement. CONTEXT: The Board had one (1) construction contract that was subject to these provisions. QUESTIONED COSTS: The questioned costs, if any, were incalculable. RECOMMENDATION: The Board should review its current policies and procedures to ensure compliance with these regulations when federal funds are used to fund construction contracts. VIEWS OF RESPONSIBLE OFFICIALS OF THE AUDITEE: he Board agrees with the finding.