Finding Text
Program Information: Education Stabilization Fund, U.S. Department of Education, passed through Michigan Department of Education, Assistance Listing #84.425. Pass-Through Grantor #213712 and 213713. Criteria: The Davis-Bacon Act (23 U.S.C. 113) requires contractors and subcontractors performing work on federal contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract?s wage determination class. Each covered contractor and subcontractor must, on a weekly basis, provide a copy of the payroll providing the information listed under recordkeeping for the preceding weekly payroll period. Condition: The District did not have controls in place to determine if contractors are complying with the Davis-Bacon Act regarding the payment of prevailing wage rates. Questioned Costs: None. Cause and Effect: The District was unaware that monitoring compliance with the Davis-Bacon Act regarding the payment of prevailing wage rates was a responsibility of the District. The District therefore had no assurance that the wages paid were in compliance with the Davis-Bacon Act. Recommendation: We recommend that the District implements internal controls to ensure compliance with the requirements over the Davis-Bacon Act. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.