Finding Text
Condition and Context: The School used funding from the grant to complete renovation and construction projects. The School requested the contractors to provide certified payroll reports in the proposal meetings, however they did not obtain the reports from the contractors.
Criteria, Cause and Effect: According to 40 USC §3142, Rate of Wages for Laborers and Mechanics, contracts in excess of $2,000, using federal funds, for construction shall contain a provision stating the minimum prevailing wage to be paid to various classes of laborers. Prior to payment the contractor is required to submit certified payroll reports and a statement of compliance with these prevailing wages.
The cause is an oversight of obtaining the certified payroll reports prior to payment to contractors.
The effect is not verifying the prevailing wages were paid to contractors.
Recommendation: We recommend that the School establish a system of monitoring contracts for construction greater than $2,000 in which the wage rate requirement exists and verify the certified payroll reports are received prior to payment.
Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.