Finding 580423 (2023-002)

Federal Agency: Department of Education Federal Program: Education Stabilization Fund Program Assistance Listings: 84.425D and 84.425U Pass-through Agency: Michigan Department of Education Grant Number(s): 213712 Project 2021 and 213713 Project 2122 Criteria: Wage Rate Requirements states that for construction contracts in excess of $2,000 non-federal entities notify contractors and subcontractors about the Department of Labor prevailing wage rate requirements. Additionally, non-federal entities are required to obtain copies of certified payrolls for contractors and/or subcontractors. Cause: When the Window Replacement Project and the Electronic Thermostat Controls Upgrade Project were bid Wate Rate Requirements were discussed, however it was not included in writing in the bid or contract agreement. Effect: The School District is not in compliance with the Wage Rate Requirements. Perspective: Although the prevailing wage clause was not included in the construction contract, the contractors hired do pay at or above the required wage rates set by the Department of Labor. Recommendation: Prior to using federal dollars to fund any project, all the applicable compliance requirements should be reviewed to ensure the School District remains in compliance with federal standards related to the grant.