Finding 384076 (2023-006)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-25

AI Summary

  • Core Issue: Construction projects lacked certified payrolls, violating wage rate requirements for federally funded contracts.
  • Impacted Requirements: Noncompliance with 29 CFR Part 5, which mandates weekly submission of certified payrolls for federally financed construction.
  • Recommended Follow-Up: Ensure all federally funded contracts include wage rate provisions and obtain certified payrolls for compliance.

Finding Text

Condition: Construction projects did not obtain certified payrolls documenting compliance with wage rate requirements. Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted construction requires that nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (Which still may be referenced as Davis-Bacon Act). Which includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each which in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Cause: Failure to understand requirements for federally funded construction projects. Context: Construction contracts to be paid with federal funds did not include wage rate requirements. In addition, required certified payrolls were not obtained. Effect: Noncompliance with Uniform Guidance Repeat Finding from Prior Year: No Recommendation: We recommend that the District obtain certified payrolls for all federally funded construction projects. We also recommend that federal funded contracts include required provisions. We also recommend that the District review all requirements for federal funds received to ensure compliance. Views of Responsible Officials and Planned Corrective Action: Typically District does not use federal funds for construction. These were renovations in response to COVID-19 and allowed expenditure of the program. The District will make sure when construction contracts are bid they let contractors know federal funds will be used and make sure the Contractor is able to comply with the requirement of certified payrolls to be submitted with all invoices submitted to District if federal funds are going to be used.

Corrective Action Plan

Typically District does not use federal funds for construction. These were renovations in response to COVID-19 and allowed expenditure of the program. The District will make sure when construction contracts are bid they let contractors know federal funds will be used and make sure the Contractor is able to comply with the requirement of certified payrolls to be submitted with all invoices submitted to District if federal funds are going to be used.

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 384074 2023-005
    Material Weakness
  • 384075 2023-005
    Material Weakness
  • 384077 2023-006
    Material Weakness
  • 960516 2023-005
    Material Weakness
  • 960517 2023-005
    Material Weakness
  • 960518 2023-006
    Material Weakness
  • 960519 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $648,796
84.010 Title I Grants to Local Educational Agencies $160,325
32.009 Emergency Connectivity Fund Program $70,560
10.553 School Breakfast Program $61,824
84.358 Rural Education $32,730
84.060 Indian Education_grants to Local Educational Agencies $25,197
10.555 National School Lunch Program $15,378
84.367 Improving Teacher Quality State Grants $5,079
10.649 Pandemic Ebt Administrative Costs $628