Finding Text
Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: COVID-19 Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Numbers: A19AV00937 Pass-Through 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 ??3141-3144, 3146, and 3147). CONDITION The School did not determine 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 School was unaware that a project completed during the year was subject to prevailing wage rate requirements. EFFECT The School could not demonstrate that prevailing wage rates were paid on all applicable projects during the year. CONTEXT For one project funded by the federal grant, the School did not include required prevailing wage rate clauses in the contract or subcontract and did not obtain copies of certified payroll for each week work was performed. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The School should review all federally-funded projects and determine which are subject to prevailing wage rate requirements. When applicable, the School should obtain certified payrolls from contractors and subcontractors to determine that prevailing wage rate requirements are met. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.