Finding Text
Findings and Questioned Costs Related to Federal Awards
Finding Number: 2023‐001
Repeat Finding: No
Program Name/Assistance Listing Title: Education Stabilization Fund
Assistance Listing Number: 84.425U
Federal Agency: U.S. Department of Education
Federal Award Numbers: S425U210038
Pass‐Through Agency: Arizona Department of Education
Questioned Costs: Unknown
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Special Tests and Provisions
Criteria
All laborers and mechanics employed by contractors or subcontractors to work on construction
contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than
those established for the locality of the project (prevailing wage rates) by the Department of Labor
(DOL) (40 USC 3141‐3144, 3146, and 3147).
Condition
It could not be determined whether laborers and mechanics employed by contractors or
subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance
funds were paid equal to or in excess of the prevailing wage rate for the locality.
Cause
The District was not aware of the required processes and documentation to retain to comply with
prevailing wage rates.
Effect
The District did not comply with the special tests and provisions requirements of the grant.
Context
The District did not notify two contractors and subcontractors of the requirements to comply with
the wage rate requirements and did not obtain copies of certified payrolls for construction projects
funded with grant monies. The sample was not intended to be, and was not, a statistically valid
sample.
Recommendation
The District should review Federal requirements over prevailing wage rates, develop policies and
procedures, and ensure those developed policies and procedures are implemented.
Views of Responsible Officials
See Corrective Action Plan.