Finding Text
Finding Type. Material Noncompliance; Material Weakness in Internal Controls over Compliance. Federal program(s) U.S. Department of Education - COVID-19 - Education Stabilization Fund (ALN 84.425D, 84.425U and 84.425W); Passed through MDE; All project numbers. Criteria. The Uniform Guidance requires that all laborers and mechanics employed by contractors to work on construction contracts in excess of $2,000 financed by federal assistance funds be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Condition. One of the contracts selected for testing that were subject to the Wage Rate Requirements did not include the required provision, and the District did not obtain the required certified payrolls. In addition, another contract selected for testing had the Wage Rate Requirements required provision, however, the District could not obtain the required certified payrolls. Cause. The District does not have the proper internal controls in place to ensure that all contracts awarded have complied with federal requirements. Effect. The District did not follow federal requirements to include the prevailing wage rate provision in its contract and the requirement to obtain the related certified payroll. Questioned Costs. The total charges included in our sample that were not supported by allowable documentation amounted to $297,973. Recommendation. We recommend that the District reviews its policies to ensure that applicable prevailing wage requirements are included in construction contracts whenever federal funds are used and certified payrolls are obtained. View of Responsible Officials. District officials will ensure that construction contracts contain these requirements during the bidding and/or proposal process. Responsible Official. Superintendent and Director of Finance. Estimated Completion Date. June 30, 2025.