Finding Text
Significant Deficiency in Compliance and Internal Controls Over Compliance: 2022.001 PREVAILING WAGE REQUIREMENTS Federal Agency: U.S. Department of Education Federal Program: ESSER II (CRRSA) and ESSER III (ARP) Pass-Through: State Department of Education AL #: 84.425D and 84.425U Questioned Costs: None Condition The contractor/subcontractor(s) failed to submit to the District the required certified payroll reports for each week in which work was performed under the contract. Effect Noncompliance with the requirements of 29 CFR 5.5(a)(3). Cause The District failed to notify the contractor/subcontractor(s) of the requirements to submit weekly certified payroll reports. In addition, the District did not have sufficient controls in place over the Wage Rate Requirements to ensure those charged with project/grant administration obtained certified payrolls on a weekly basis. Criteria Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements,(which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL requirements (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit 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). Recommendation The District should request that the contractor/subcontractor(s) provide certified payroll reports that are in compliance with 29 CFR 5.5(a)(3). The District should implement internal controls over compliance with the Wage Rate Requirements to ensure that all contractor/subcontractor(s) submit weekly payroll and the required compliance certification statements are obtained on a weekly basis and that those payroll reports are compared to the applicable approved wage rates. Views of Responsible Officials See Corrective Action Plan