Finding 47353 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The construction contract failed to include a provision for paying prevailing wage rates as required by federal law.
  • Impacted Requirements: The School Board did not receive certified payrolls, making it impossible to verify compliance with wage rate laws.
  • Recommended Follow-Up: Management should establish a process to regularly review compliance requirements for all federal assistance grants.

Finding Text

Program Title:COVID-19 - Education Stabilization Fund ALN:84.425 Pass-through Entity: Virginia Department of Education Compliance Requirement: Special Tests and Provisions Finding Type: Noncompliance Criteria: Construction contracts, in excess of $2,000 financed by federal assistance funds, shall include a provision that the contractor or subcontractor pay prevailing wage rates established by the Department of Labor (DOL). In addition, the contractor or subcontractor must submit to the nonfederal entity a copy of the payroll and a statement of compliance weekly. Condition: The construction contract did not include the provision that the contractor or subcontractor must pay prevailing wage rates established by the DOL nor did the School Board receive certified payrolls from the contractor. Questioned Costs: Unknown Context: The construction contract did not include the provision that the contractor or subcontractor must pay prevailing wage rates established by the DOL nor did the School Board receive certified payrolls from the contractor. Effect: Unable to determine if prevailing wage rates were paid on the construction contract. Cause: The federal program is fairly new and the compliance requirement was not known by School Board personnel. In addition, guidance from the federal government was not clearly provided by the State. Recommendation: Management should implement a process to review compliance requirements for all federal assistance funds grants to ensure that all compliance requirements have been met. View of Responsible Officials: Management will review its process for reviewing compliance requirements for all federal assistance funds.

Categories

Special Tests & Provisions Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $741,393
10.555 National School Lunch Program $700,154
84.027 Special Education_grants to States $486,667
84.010 Title I Grants to Local Educational Agencies $375,097
10.553 School Breakfast Program $235,768
84.287 Twenty-First Century Community Learning Centers $155,697
84.367 Improving Teacher Quality State Grants $54,105
84.048 Career and Technical Education -- Basic Grants to States $32,075
10.559 Summer Food Service Program for Children $29,587
84.424 Student Support and Academic Enrichment Program $24,704
84.365 English Language Acquisition State Grants $6,469
84.173 Special Education_preschool Grants $1,105
17.278 Wia Dislocated Worker Formula Grants $907
10.649 Pandemic Ebt Administrative Costs $614