Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund
Assistance Listing Number: 84.425D & 84.425C
Federal Award Identification Number and Year: 2021
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number(s): 2021-401253-DPI-GEERF-162, 2022-401253-DPI-ESSERFII-163 & 2022-401253-DPI-ESSERFIII-165
Award Period: July 1, 2020 through September 30, 2022, March 13, 2020 through September 30, 2029 and July 1, 2020 through September 30 ,2024
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction requires that all nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations.
Condition: During testing of both of the qualifying contracts for selected for testing for compliance with requirements of the Davis-Bacon Act. Neither contract contained requirement clauses communicating required compliance with Davis-Bacon Act provisions.
Questioned costs: None
Context: The agreements entered into during the fiscal year under audit were for project that were below the scope the contractor and District require full contracts for. As such simplified agreements were entered, which did not include written Davis-Bacon Act clauses.
Cause: The District did not design and implement controls to ensure contract qualifying for Davis-Bacon Act compliance included all required clauses.
Effect: Projects subject to compliance with provisions of the Davis-Bacon Act may not have been conducted in compliance with such requirements.
Repeat Finding: The finding is not a repeat finding.
Recommendation: We recommend the District design and implement internal controls that ensure all necessary clauses, provisions and languages in included in contracts subject to compliance with Davis-Bacon Act.
Views of responsible officials: There is no disagreement with the audit finding.