Finding Text
EFS Section 1 - Elementary and Secondary Education - Davis-Bacon Prevailing Wage Requirements ALN 84.425U - ESSER III - Grant # 213713 2122 - Grant Ending September 30, 2024 Condition and Criteria: The Federal Compliance Supplement requires that recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts, that are over $2,000, and use laborers and mechanics, must meet Davis-Bacon prevailing wage requirements. To ensure this, the District is required to review the weekly certified payrolls, ensuring that the proper prevailing wages were paid. During the audit, it was noted that certified payrolls were not consistently being reviewed, which allowed for one contractor to not pay the correct rate to their employees. We would like to note that once this situation was uncovered, the contractor did in fact correct the prior pays so that all employees were paid the appropriate prevailing wages. Effect: The District was out of compliance in regards to the Davis-Bacon rules until the wages were subsequently corrected by the contractor.Cause: The Construction Manager was not consistently reviewing weekly certified payrolls, as required, throughout the course of the construction to ensure that proper prevailing wages were consistently paid. Context: While the District was out of compliance initially for not ensuring that the correct prevailing wages were paid, this situation was fully corrected prior to the audit by the contractor. Questioned Costs: $0. While the District was out of compliance initially for not ensuring that the correct prevailing wages were paid, this situation was fully corrected prior to the audit by the contractor. Auditors' Recommendation: We recommend the Contract Manager begin reviewing certified payrolls weekly for all on-going projects for which ESF funds are being utilized. Views of Responsible Officials and Planned Corrective Actions: The District understands the issue and will work with their Construction Manager to ensure that certified payrolls are reviewed weekly moving forward. Please see the attached Corrective Action Plan prepared by the District.