Finding Text
U.S. DEPARTMENT OF EDUCATION
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
COVID-19 AMERICAN RESCUE PLAN - ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL NUMBER 84.425U
PASS-THROUGH NUMBER 0601
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-001. Special Tests and Provisions
Criteria or specific requirement: The Davis-Bacon Act requires all contractors and subcontractors performing work on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations.
Condition: The District paid $245,750 for installation of an HVAC system from the Education Stabilization Fund without obtaining a written contract that included the prevailing wage rate clause.
Cause: Lack of internal controls and management oversight.
Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act.
Context: Examined all payments/contracts for facility repairs and improvements paid from the Education Stabilization Fund.
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education (DESE) for guidance regarding this matter and implement proper controls over program expenditures.
Views of responsible officials: The Superintendent will contact the Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE) for guidance as a new employee to the district regarding this previous year matter, seek to clarify newly implemented controls for program expenditures, and implement program controls and DESE recommended controls regarding expenditures from the Education Stabilization Fund.