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: The District had a letter from the contractor certifying compliance with Davis-Bacon Act but were unaware of need to obtain certified payrolls.
Effect: The expenditures may be disallowed.
Context: Unable to determine labor costs included in applications for payment from the contractor.
Repeat Finding from Prior Year: No
Recommendation Obtain certified payrolls for construction projects funded with federal awards. Determine that contracts for construction using federal funds include the appropriate clauses to be in compliance with federal procurement guidelines.
Views of Responsible
Officials And Planned
Corrective Action: Lawton Public Schools obtained contractor certification of Davis-Bacon Act compliance, but did not obtain certified payrolls. The district identified this issue early in FY23 and immediately changed practices and procedures regarding federal funds and Davis-Bacon Act compliance. These changes did not take effect in time to avoid the Impact Aid expenses. Procurement guidelines for construction projects funded by federal awards have been updated to include the appropriate clauses to comply with federal procurement guidelines. This expenditure occurred in FY23 but prior to the FY22 Audit completion.