Finding Text
2024-003: COVID-19 Elementary and Secondary School Emergency Relief (ESSER) Fund – ALN #84.425D and COVID-19 American Rescue Plan Elementary and Secondary School Emergency Relief Fund (ARP ESSER) – ALN #84.425U, Special Tests and Provisions – Wage Rate (Material Noncompliance) Condition During our review of one applicable contract for a federally funded project, we noted that the contract did not include the required Wage Rate (Davis Bacon Act) and DOL regulations. Criteria Under the ESSER grant guidelines, nonfederal entities must include in their construction contracts subject to the Davis-Bacon Act a provision that the contractor or subcontractor comply with the Davis-Bacon Act and the DOL regulations. The entities must establish internal controls to ensure that contracts related to federally funded projects are reviewed and contain the required language. Cause The omission of this clause was due to oversight and a lack of controls in place to ensure that the required language was included.Effect The written contract was not in compliance with required disclosures related to the Davis Bacon Act. Recommendation We recommend that a process be put in place that ensures that all contracts related to federally funded projects include necessary DOL regulations. Repeat Finding Similar condition present in the prior year. See finding 2023-003 in Summary Schedule of Prior Year Audit Findings. View of Responsible Officials and Planned Corrective Action The School Board agrees that the Davis Bacon Act was not included in the contract language. However, Colonial Heights Public Schools did not request any reimbursements for wages from the federal funding sources, only materials and supplies. Procedures were put in place, and where the Davis-Bacon Act applied, the contract language was added.