Finding 1223484 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-07-09

AI Summary

  • Core Issue: The Board failed to include required prevailing wage rate clauses in construction contracts funded by federal COVID-19 funds.
  • Impacted Requirements: The Board did not comply with the Davis-Bacon Act, which mandates prevailing wage rates and certified payroll submissions for contracts over $2,000.
  • Recommended Follow-Up: Ensure future contracts include prevailing wage clauses and establish a process for verifying weekly certified payroll submissions from contractors.

Finding Text

Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must 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). During the fiscal year 2024, the Henry County Board of Education (the “Board”) expended $1,270,487.00 of COVID-19 Education Stabilization Funds (Elementary and Secondary School Emergency Relief) on construction projects. The Board’s contracts did not include the required prevailing wage rate clauses nor were certified payrolls submitted by the contractors. The Board did not ensure the Davis-Bacon Act wage rate requirements were included in construction contracts; therefore, COVID-19 Education Stabilization Funds (Elementary and Secondary School Emergency Relief) funds were used to pay contracts that did not include prevailing wage rate clauses, nor did the Board ensure that contractors submitted weekly certified payrolls. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements. This finding was originally reported as Finding 2023-001.

Corrective Action Plan

The Board should comply with Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”) when using COVID-19 Education Stabilization Funds to fund construction contracts in excess of $2,000.00 with the use of mechanics and laborers.

Categories

Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 1223483 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $2.91M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.03M
84.027 SPECIAL EDUCATION GRANTS TO STATES $666,356
10.553 SCHOOL BREAKFAST PROGRAM $490,520
84.013 TITLE I STATE AGENCY PROGRAM FOR NEGLECTED AND DELINQUENT CHILDREN AND YOUTH $133,983
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $128,939
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $84,231
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $74,042
10.555 NATIONAL SCHOOL LUNCH PROGRAM $67,474
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $23,124
96.001 SOCIAL SECURITY DISABILITY INSURANCE $618