Finding Text
(#2022-002) Prevailing Wages Assistance Listing # 84.425D CRRSA-ESSER 2-COVID-19 84.425U ARP-ESSER 3-COVID-19/ARP-SLR Summer Enrichment-COVID-19/ARP-SLR Comprehensive After School-COVID-19/ARP-SLR Learning Loss-COVID-19 Year Ended ? June 30, 2022 Indirect Program Federal Agency ? U.S. Department of Education Criteria ? The compliance supplement states ?that laborers and mechanics employed by contractors or subcontractors to work on construction contacts 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 ? The District did not obtain certified payroll reports from a contractor paid with federal grant funds in order to substantiate that the contractor paid employees prevailing wages for work performed on the project. Cause ? The District did not include language in the contract requiring the vendor to supply payroll certification reports for work performed on the project. Effect ? The District will not be considered a low-risk auditee for single audit purposes. In addition, the District is not in compliance with Department of Labor requirements for prevailing wages. Questioned Costs ? There were no questioned costs noted related to this finding. Context ? This finding was identified during testing of purchases made with grant funds, follow up inquiries of management, and review of the related policies noted above. Recommendation ? We recommend the District ensure that prevailing wage documentation is obtained when using contractors or subcontractors for construction projects in excess of $2,000. District?s Response ? The District will be ensuring that prevailing wage documentation is obtained when using contractors or subcontractors for construction projects in excess of $2,000. We have had a meeting at the administrative level to discuss these findings with all administrators to ensure we are all aware and following the process.