Finding 24072 (2022-001)

Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Numbers: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass-Through Agency: N/A Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions 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 (DOL) (40 USC 3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. The sample was not intended to be, and was not, a statistically valid sample. CAUSE The School was unaware that grant monies expended on construction and minor remodeling were subject to wage rate requirements. EFFECT The School did not comply with the special tests and provisions requirements of the grant. CONTEXT The School did not notify contractors and subcontractors of the requirements to comply with the wage rate requirements and did not obtain copies of certified payrolls for construction projects funded with grant monies. RECOMMENDATION The School should expand existing procedures for wage rate requirements to include construction and minor remodeling expenditures. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.