Finding Text
Information on Federal Program: AL 84.424, Elementary and Secondary School Emergency Relief Fund (ESSER), US Department of Education, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: N – Special Tests and Provisions (Construction of Assets); Type of Finding: Noncompliance
Criteria: Construction of real property using ESSER funds requires the contract to specify that workers will be paid the prevailing wage rate. To monitor the contractor’s compliance with the requirement, the District is required to obtain and review certified payroll reports documenting the contractor’s compliance.
Condition: The District did not obtain the required certified payroll reports.
Context: While certified payroll reports were not obtained, the District did comply with related provisions, including the inclusion of the contract provision to pay prevailing wage rates contained in the contract with the contractor.
Cause: The District’s current policy for obtaining certified payroll reports is compliant with state requirements, and did not contemplate the lower threshold required by federal regulation.
Effect: The District did not confirm that the contractor who performed the work paid its workers the prevailing wage as required.
Recommendation: We recommend the District implement policy for any upcoming real property construction to be funded using federal programs to ensure that prevailing wage requirements are monitored by use of obtaining certified payroll reports.
Views of Responsible Officials: The District agrees with this finding and will adopt additional policies relating to construction projects with federal funds.