Finding Text
FINDING 2023-001 DAVIS-BACON COMPLIANCE
SIGNIFICANT DEFICIENCY
Federal Program: Education Stabilization Fund
Assistance Listing Numbers: 84.425D, 84.425U, and 84.425W
Condition
The School entered into an agreement with a contractor for building renovations, paid with funds from
the Education Stabilization Fund. A formal contract that required compliance with the provisions of the
Davis-Bacon Act was put into place. However, the School did not obtain certified payrolls from the
contractor for each week that work was performed under the contract.
Criteria
The 2023 Compliance Supplement states: 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 (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally
Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to
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) (29 CFR sections 5.5 and 5.6; the A-
102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract
Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326).
Cause
The School was not aware of the requirement outlined in the Criteria section above.
Effect
The School is unable to document that the contractor is compliant with the Davis-Bacon Act.
Recommendation
We recommend the School develop internal controls to ensure that certified payrolls are obtained for
each week that work is performed under qualifying construction or sub-construction contracts.
Views of Responsible Officials and Planned Corrective Actions
The School’s Corrective Action Plan is included on page 23.