Finding Text
Finding No.: 2024-012 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund ED Subprogram: 84.425A Education Stabilization Fund – State Educational Agency (Outlying Areas) Federal Award No.: S425A210003 Area: Special Tests and Provisions - Wage Rate Requirements Questioned Costs: $45,750 Criteria: 29 CFR sections 5.5 and 5.6 requires nonfederal entities to include in their construction contracts subject to the Wage Rate Requirements (the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for 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: For 1 (or 33%) of the 3 construction contracts subjected to the Wage Rate Requirements test, there was no executed construction contract between GDOE and the contractor, consequently, certified payrolls were not submitted to GDOE. Total expenditure charged to the program related to the construction project with the contractor (vendor ID 80757) is $45,750. Cause: GDOE incorrectly utilized the small purchase procurement upon solicitation (i.e., regular purchase order, instead of executing a contract). Effect: GDOE is in noncompliance with applicable special tests and provisions - wage rate requirements. The reportable questioned cost is $45,750. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions - wage rate requirements.