Finding 518451 (2024-001)

Finding Number: 2024-001 Federal Program: COVID-19 ARP – Education Stabilization Fund Federal Award Identification Number and Year: N/A Assistance Listing Number (ALN): 84.425U Federal Awarding Agency: U.S. Department of Education Compliance Requirement: Special Tests and Provisions – Wage Rate Requirements Pass-through Entity: Ohio Department of Education and Workforce Repeat Finding: No Significant Deficiency and Material Noncompliance – Wage Rate Requirements Criteria: 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. (2 CFR 200 Appendix II (d)). Condition: There was no documentation to support compliance with wage rate requirements or documentation showing that the School required contractors to comply with prevailing wage requirements for any of the construction work. Total costs for various building improvements, renovations & repairs were $25,729 during fiscal year 2024. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: The School provided assurances to the Ohio Department of Education and Workforce's Comprehensive Continuous Improvement Plan (CCIP) that it would comply with wage rate requirements when it communicated its plan to use federal ESSER funds for improvements to its building. Cause and Effect: The School did not comply with the special test of wage rate requirements on the various renovation, repair and improvement projects to its building that were funded with federal grants. Recommendation: The School should implement processes to review federal grant compliance requirements and implement procedures to help ensure the School complies with applicable requirements. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.