Finding Text
2023-004 Prevailing Wage Rates (Material Weakness and Compliance) Federal Agency: U.S. Department of Education Federal Program: Education Stabilization Fund Assistance Listing #: 84.425D/84.425U Pass-through Entity: Montana Office of Public Instruction Criteria: Construction contracts in excess of $2,000 funded by federal grants are subject to prevailing wage rates. The contractor is required to submit weekly payroll reports and a statement of compliance. Condition: The District funded a construction contract for $664,456 with Education Stabilization Fund-ESSER II and ESSER III grant funds without adding the requirement for prevailing wage rates in the contract. Cause: The District hired an architect to manage the construction contract and they did not add the prevailing wage rate requirements to the contract for the construction project. Effect: The contractor did not submit weekly payroll reports or compliance statements to the architect or District during the construction project. Context: The contractor stated that wages paid in this region are generally above the prevailing wage rate required, but the weekly compliance paperwork was not required for this contract. Repeat Finding: No. Recommendations: When federal grant funds are utilized for construction, the prevailing wage rate requirements should be researched and included in the contracts, as applicable. Views of Responsible Officials: The District will ensure the prevailing wage rate requirement will be included in future contracts and verify weekly payroll reports or compliance statements are prepared by contractors.