Finding 37847 (2022-001)

Reference Number: 2022-001 Compliance Requirement: Special Tests and Provisions Type of Finding: Internal Control and Compliance Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance CFDA Number and Title: 84.425 ? COVID-19 Education Stabilization Fund Federal Award Agency: U.S. Department of Education Pass-through Entity: Alabama Department of Education Questioned Costs: $413,757 Section III - Federal Award Findings and Questioned Costs Funds from COVID-19 Education Stabilization Fund (ESF) were used to fund construction contracts in excess of $2,000 without the inclusion of prevailing wage rate clauses as required by Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the ?Davis-Bacon Act?). The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts. Therefore, the construction project contract awarded during the fiscal year did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. We recommend the Board implement controls to ensure they comply with the wage rate requirements when applicable. Management responds they will implement controls to ensure future contracts funded with COVID-19 Education Stabilization Funds (ESSER) in excess of $2,000 specify applicability of wage rate requirements.