Finding Text
Statement of Condition: Language regarding wage rate requirements was not included in construction contracts and certified payroll forms were not obtained. Criteria: All 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 the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Cause: Management was unaware the wage rate requirements applied to ESSER funds and did not include the necessary language in contracts. Effect: Employees could potentially not be paid prevailing wage rates which could jeopardize grant funding. Recommendation: Management needs to ensure that all construction contracts with contractors in excess of $2,000 have a prevailing wage rate clause and that certified payrolls are received and reviewed in a timely manner. Documentation should be maintained according to all laws, regulations, and policies to demonstrate compliance with established requirements. Questioned Costs: $266,370