Finding Text
2022-003 ? Special Tests and Provisions ? Wage Rate Requirements Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program U.S. Department of Education COVID-19 - Education Stabilization Fund (ALN 84.425C, 84.425D and 84.425U); Passed through MDE; All project numbers. Criteria. 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. Condition. Two of the contracts selected for testing that were subject to the Wage Rate Requirements, did not include the required provision. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contracts. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $331,402. Recommendation. 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. View of Responsible Official. Management concurs with this finding and will work on correcting for next year. Responsible Official. Chief Financial Officer Estimated Completion Date. June 30, 2023