Finding 3680 (2023-003)

Finding: 2023 – 003 – Federal Assistance Listing Number, Federal Agency, and Program Name – 84.425U – U.S. Department of Education– Education Stabilization Fund – Elementary Secondary School Relief Fund (ESSER III) Finding Type – Significant Deficiency (Uniform Guidance) – Special Tests and Provisions – Wage Rate Requirements Criteria – The School is required to notify contractors and subcontractors of Davis Bacon prevailing wage requirements when the School has a construction project being paid with federal funds. Condition – While reviewing the construction request for proposal for the construction project that was used by federal funds, there was no mention that contractors and subcontracts must use the Davis Bacon prevailing wage requirement. Questioned Costs – None. Cause - The School omitted the Davis Bacon prevailing wage requirement that is required for construction request for proposal for projects that are being paid with federal funds. Effect – The School omitted the Davis Bacon prevailing wage requirements in the School’s request for proposal for the construction project that was paid with federal funds. By doing this the School did not notify the contractors and subcontractors that Davis Bacon prevailing wage requirements are required. There is a risk that prevailing wages were not paid. Recommendation – The School should include in all construction contracts that are being paid with federal fund that Davis Bacon prevailing wage requirements must be paid. School’s Response – The School concurs with this finding and will include Davis Bacon prevailing wage requirements in all future construction contracts that are being paid by federal funds.