Finding 22670 (2022-002)

Reference # and title: 2022-002 Controls and Compliance over Davis Bacon Act Federal program and specific federal award identification: CFDA Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization (ESSER II) 84.425D 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 assure compliance with the Davis Bacon Act. Condition found: The School Board started construction projects to install HVAC systems for two schools in the District, to install new water fountains at six schools in the District, and to install bipolar ionizers at six schools in the District and the Central Office using Education Stabilization (ESSER II) 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: This is the first time the School Board received federal funds to be used for construction and therefore was not trained adequately on Davis Bacon Act procedures. Effect: The School Board did not meet all federal compliance requirements over special tests and provisions. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure employees are adequately trained on Davis Bacon requirements. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2022. View of responsible official: The School Board agrees with the assessment of the auditors stated above and has taken steps to ensure employees are aware of the Davis Bacon Act requirements. Davis Bacon Act requirements have been followed on subsequent construction projects funded with Federal funds.