Finding Text
Finding #2024-004 – Education Stabilization Fund – ESSER II #84.425D and ESSER III #84.425U
Federal Grantor – U.S. Department of Education
Pass-through Award Number – 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165
Pass-through Entity – Wisconsin Department of Public Instruction
Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for project totaled $348,177. There was not a prevailing wage clause in the contract and certified payrolls were not received.
Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL).
Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor t submit to the District weekly payrolls and a statement of compliance (certified payrolls).
Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed.
Effect: Potential reimbursement for costs that did not follow the wage rate requirements.
Questioned Costs: $348,177
Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund.
Response: Before bidding any future construction project more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received for any such contracts.