Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Education Stabilization Fund
Assistance Listing Number: 84.425
Federal Award Identification Number and Year: Not available.
Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education
Pass-Through Number(s): 115-561133-2022-0292
Award Period: October 1, 2021 through September 30, 2024
Compliance Requirement: Special Tests and Provisions
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matter
Criteria or Specific Requirement: Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and Department of Labor regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Internal controls should be designed and implemented to prevent or detect noncompliance with this requirement.
Condition: The Town had two (2) construction projects funded by the federal program during the fiscal year during which laborers were hired to work on the projects. The Town did not maintain documentation supporting that the appropriate certified payrolls were obtained and reviewed to ensure the prevailing wage rates paid to such laborers were met or exceeded.
Questioned Costs: Unknown
Context: The Town did not obtain the appropriate certified payrolls nor was any review documented ensuring appropriate wage rates were being charged for the projects.
Cause: Internal controls were not implemented to ensure the certified payrolls were obtained, reviewed, and documented in accordance with the provisions of the federal program.
Effect: Noncompliance with the federal program occurred.
Repeat Finding: No.
Recommendation: We recommend the Town implement internal controls to ensure the certified payrolls are received from the contractors on applicable projects and reviewed by appropriate personnel. The review should be documented.
Views of Responsible Officials: There is no disagreement with the audit finding.