Finding Text
Finding Number: 2023‐002
Repeat Finding: Yes, 2022‐002
Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund
Assistance Listing Number: 84.425U
Federal Agency: U.S. Department of Education
Federal Award Number: A19AV00937
Pass‐Through Agency: Arizona Department of Education
Questioned Costs: N/A
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
The School did not determine 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 School was unaware that a project completed during the year was subject to prevailing wage
rate requirements.
Effect
The School could not demonstrate that prevailing wage rates were paid on all applicable projects
during the year.
Context
For three projects funded by the federal grant, the School did not include required prevailing wage
rate clauses in the contract or subcontract and did not obtain copies of certified payroll for each
week work was performed. The sample was not intended to be, and was not, a statistically valid
sample.
Recommendation
The School should review all federally‐funded projects and determine which are subject to
prevailing wage rate requirements. When applicable, the School should obtain certified payrolls
from contractors and subcontractors to determine that prevailing wage rate requirements are met.
Views of Responsible Officials
See Corrective Action Plan.