Finding Text
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.