Finding 501899 (2023-004)

Significant Deficiency
Requirement
J
Questioned Costs
-
Year
2023
Accepted
2024-10-07

AI Summary

  • Core Issue: The Marengo County Board of Education awarded a construction contract over $2,000 without including required prevailing wage rate clauses.
  • Impacted Requirements: This oversight violates the Davis-Bacon Act, which mandates that federal-funded construction contracts adhere to local prevailing wage rates.
  • Recommended Follow-Up: Implement stronger controls to ensure all future contracts comply with the Davis-Bacon Act and include necessary wage rate clauses.

Finding Text

Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The 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 locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must 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). During fiscal year 2023, the Marengo County Board of Education (the “Board”) entered into a construction project contract that did not include the prevailing wage rate clauses. The Board did not have adequate controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts; therefore, a construction project contract was awarded during the fiscal year that did not include prevailing wage rate clauses. Even though the contract did not include the prevailing wage rate clauses, the contractor did submit weekly certified payrolls to the Board. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements.

Corrective Action Plan

The Marengo County Board of Education will ensure that all construction contracts paid with federal funds will include the prevailing wage rates in accordance with the "Davis-Bacon Act."

Categories

Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 501900 2023-004
    Significant Deficiency
  • 501901 2023-004
    Significant Deficiency
  • 1078341 2023-004
    Significant Deficiency
  • 1078342 2023-004
    Significant Deficiency
  • 1078343 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.00M
84.010 Title I Grants to Local Educational Agencies $652,844
10.555 National School Lunch Program $562,360
84.027 Special Education_grants to States $300,640
10.553 School Breakfast Program $257,732
84.367 Improving Teacher Quality State Grants $72,137
84.424 Student Support and Academic Enrichment Program $66,798
84.048 Career and Technical Education -- Basic Grants to States $43,019
84.358 Rural Education $13,617
84.173 Special Education_preschool Grants $5,741
10.560 State Administrative Expenses for Child Nutrition $2,307
96.001 Social Security_disability Insurance $540