Finding Text
2021/2 022 Wage Rate Compliace CFDA Title: Impact Aid
CFDA Number: 84.041
Federal Award Number: 2022
Federal Agency: U.S. Department of Education Pass-through Entity: Direct
Condition:
The District did not comply with the wage rate compliance related to the teacher housing civil
construction project expenditures paid from Impact Aid monies.
Criteria:
Section 7007 construction funds, as well as any Section 7002 or 7003(b) funds spent for
construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).
Compliance Requirement - 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).
Non-federal 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 the DOL regulations (29 CFR part 5, Labor
Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted
Construction). This includes a requirement for the contractor or subcontractor to submit to the
non-Federal entity weekly, for each week in which any contract work is performed, a copy
of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the
A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR part 215, Appendix A,
Contract Provisions); 2 CFR part 176, subpart C; and 2 CFR section 200.326).
Context:
During the testing of significant claims for the Impact Aid major program related to
construction, we noted claims in which the wage rate requirements would apply.
Effect:
Noncompliance with the Wage Rate Requirement.
Cause:
The District was not aware of the requirement.
Recommendation:
The District should implement internal controls to determine the federal compliance
requirements of all federal funds received. In addition, procedures should be implemented to
ensure any federal funds received in which the Wage Rate Requirement is required the following are
implemented:
1. any construction vendor is by contract which includes the Prevailing Wage clauses for the
contractors and subcontractors
2. the weekly certified payrolls are submitted