Finding Text
Reference # and title: 2025-007 Controls and Compliance over Davis Bacon Act for ESSER Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education COVID-19 Education Stabilization Funds: Education Stabilization (ESSER III) 84.425U 2021 Criteria or specific requirement: In accordance with the Davis Bacon Act at 29 CFR part 5, for construction contracts in excess of $2,000, the School Board is required to provide the prevailing wage rates to the potential contractors and include language in the contracts that all contractors or subcontractors must pay wages that are not less than the prevailing wage rates. Additionally, the School Board is required to perform reviews of contractors’ and subcontractors’ wages paid to construction workers to ensure amounts being paid are in accordance with the prevailing wage rates for the related work performed. This review includes obtaining weekly payroll reports and performing interviews of contractors’ and subcontractors’ employees in such frequency as necessary to ensure compliance with the Davis Bacon Act. Condition found: The School Board completed a project at a school to install HVAC mini-split which required one of the schools to have remodeling work performed in order to install the mini-split using Education Stabilization (ESSER III) funds. The School Board did not provide the prevailing wage rates to the contractor, nor did they include the required language in the contracts. It was also noted that the School Board did not receive certified weekly payroll reports from the contractor. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: The School Board was not aware of the Davis Bacon Act requirements over the ESSER funds. Effect: The School Board did not meet all federal compliance requirements over Davis Bacon Act. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure all grant requirements are reviewed to have an understanding of what is required of the School Board. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2025. View of responsible official: Grants are now reviewed and procedures are in place to ensure that all requirements are met.