Finding Text
The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds 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 construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations, which include a requirement to obtain weekly certified payrolls from contractors.
The District did not include the federal wage rate requirements in their contracts and did not obtain the required certified payrolls for its contractors subject to the federal rate requirements.
The District did not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements.
As a result of this condition, District did not follow federal requirements to include the prevailing wage rate provision in its contract.
The total charges that were not supported by appropriate prevailing wage documentation amount to $134,000.
We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained.