Finding Text
FINDING 2023-002 DAVIS-BACON COMPLIANCE
SIGNIFICANT DEFICIENCY
Federal Program: Education Stabilization Fund
Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W
Condition
The School entered into agreements with contractors for various construction projects paid with funds
from the Education Stabilization Fund. The School did not obtain certified payrolls from the
contractor for each week in which work was performed under the contract to document compliance
with the David-Bacon Act.
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 regulations (29 CFR Part 5, Labor
Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted
Construction). This includes a requirement for the contractor or subcontractor to submit to 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) (29 CFR sections 5.5 and 5.6; the A-102
Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract
Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326).
Cause
The School was not aware of the requirement outlined in the Criteria section above.
Effect
The School was unable to document the contractors were compliant with the Davis-Bacon Act.
Recommendation
We recommend the School develop internal controls to ensure that certified payrolls are obtained for
each week that work is performed under qualifying construction or sub-construction contracts.
Views of Responsible Officials and Planned Corrective Actions
The School’s Corrective Action Plan is included on page 24.