Finding Text
FINDING 2024-002 DAVIS-BACON COMPLIANCE
SIGNIFICANT DEFICIENCY
Federal Program: Education Stabilization Fund
Assistance Listing Numbers: 84.425
Criteria
2 CFR part 200, Appendix II, Contract Provisions for Non-Federal Entity Contracts Under Federal Awards,
part (D), states: When required by Federal program legislation, all prime construction contracts in excess of
$2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40
U.S.C 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor
Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In
accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not
less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition,
contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy
of the current prevailing wage determination issued by the Department of Labor in each solicitation. The
decision to award a contract or subcontract must be conditioned upon the acceptance of the wage
determination.
Condition
The School entered into an agreement with a contractor for building renovations paid with funds from the
Education Stabilization Fund. The School was unable to provide a copy of the formal contract including the
provisions of the Davis-Bacon Act.
Cause
The School did not maintain the contract for the renovation services.
Effect
The School is unable to document that the contractor is compliant with the Davis-Bacon Act.
Recommendation
We recommend the School develop internal controls to ensure formal contracts are put in place and retained.
Views of Responsible Officials
The School’s Corrective Action Plan is included on page 25.