Finding Text
Findings and Questioned Costs Related to Federal Awards
Finding Number: 2023001
Repeat Finding: No
Program Name/Assistance Listing Title: Education Stabilization Fund
Assistance Listing Number: 84.425U
Federal Agency: U.S. Department of Education
Federal Award Number: S425U210038
PassThrough
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 §§31413144,
3146, and 3147).
Condition
It could not be determined 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 District was not aware of all of the prevailing wage requirements applied to its construction
contracts.
Effect
The District did not comply with the special tests and provisions requirements of the grant.
Context
For two of two construction contracts reviewed, the District did not require the contactor or
subcontractor to submit the required certified payroll for each week work was performed.
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation
The District should review federal requirements over prevailing wages, develop policies and
procedures, and ensure those developed policies and procedures are implemented.
Views of Responsible Officials
See Corrective Action Plan.