Finding Text
2024-007 Federal Agency: U.S. Department of Education
Pass Thru Entity: Oklahoma State Department of Education
Program: COVID-19 Education Stabilization Fund
Assistance Listing: COVID-19- 84.425U
Grant Period: Year ending June 30, 2024
Compliance Requirement: N. Special Tests and Provisions
Type of Finding: Non-Compliance & Material Weakness
Condition: Construction projects did not obtain certified payrolls documenting compliance with wage rate requirements.
Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted construction requires that nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (Which still may be referenced as Davis-Bacon Act). Which includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each which in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls).
Cause: Failure to understand requirements for federally funded construction projects.
Context: Construction contracts to be paid with federal funds did not include wage rate requirements. In addition, required certified payrolls were not obtained.
Effect: Noncompliance with Uniform Guidance
Repeat Finding from Prior Year: Yes -- 2023-005
Recommendation: We recommend that the District obtain certified payrolls for all federally funded construction projects. We also recommend that federal funded contracts include required provisions and that the District review all requirements for federal funds received to ensure compliance.
Views of Responsible Officials
and Planned Corrective
Action: The District will review federal expenditures and ensure that construction projects are not being paid with funds unless the proper language has been in the construction contract and certified payrolls have been obtained. Future projects will be reviewed to ensure compliance with the Davis Bacon Act.