Finding 522506 (2023-006)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2025-02-10

AI Summary

  • Core Issue: The Board failed to include required prevailing wage rate clauses in a $2.6 million construction contract funded by federal assistance.
  • Impacted Requirements: The Board did not comply with the Davis-Bacon Act, which mandates certified payroll submissions and adherence to local wage rates for federal-funded projects over $2,000.
  • Recommended Follow-Up: Implement controls to ensure compliance with the Davis-Bacon Act for future contracts, especially when using federal funds for construction projects.

Finding Text

Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The 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 locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The Barbour County Board of Education (the “Board”) entered into a construction project contract totaling $2,642,387.00 that did not include prevailing wage rate clauses. During the current fiscal year, the project was completed and payments totaling $2,642,387.00 were made from Education Stabilization Funds. The Board did not have controls in place to ensure the Davis-Bacon Act wage rate requirements were included in construction contracts; therefore, prevailing wage rate clauses were not included in this contract nor did the contractors submit weekly certified payrolls to the Board. As a result, the Board is not in compliance with the Davis-Bacon Act as it pertains to wage rate requirements. Recommendation The Board should comply with Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the “Davis-Bacon Act”) when using COVID-19 Education Stabilization Funds to fund construction contracts in excess of $2,000.00 with the use of mechanics and laborers.

Corrective Action Plan

The Board will comply with Title 29, U. S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Provisions and Procedures (the "Davis-Bacon Act") when using COVID- 19 Education Stabilization Funds for construction.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 522505 2023-005
    Material Weakness
  • 522507 2023-005
    Material Weakness
  • 522508 2023-006
    Material Weakness
  • 1098947 2023-005
    Material Weakness
  • 1098948 2023-006
    Material Weakness
  • 1098949 2023-005
    Material Weakness
  • 1098950 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund - American Rescue Plan - Elementary and Secondary School Emergency Relief (arp Esser) Fund $4.10M
84.425 Education Stabilization Fund - Elementary and Secondary School Emergency Relief (esser) Fund $2.32M
84.010 Title I Grants to Local Educational Agencies $1.52M
10.555 National School Lunch Program - Cash Assistance $394,705
84.027 Special Education Grants to States $255,800
10.553 School Breakfast Program $231,158
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $169,310
10.555 National School Lunch Program-Non-Cash Assistance $45,292
84.424 Student Support and Academic Enrichment Program $42,400
84.048 Career and Technical Education -- Basic Grants to States $41,535
10.555 National School Lunch Program-Covid-19 Cash Assistance $30,046
12.U01 Army Jrotc $24,698
84.173 Special Education Preschool Grants $9,533
10.558 Child and Adult Care Food Program $8,954
10.559 Summer Food Service Program for Children $5,948
10.582 Fresh Fruit and Vegetable Program $2,111
10.574 Team Nutrition Grants $1,025
96.001 Social Security Disability Insurance $20