Finding Text
2023-002 ARP Esser (Esser III) Grant No. S425U210021 Criteria: OMB 2 CFR Part 200, Appendix X1, Compliance Supplement for Federal Assistance Number 84.425, Subpart F, instructs that laborers and mechanics must meet prevailing wage requirements. Condition: The District used a contractor that did not pay prevailing wages. Context: During our audit, we tested for prevailing wages on school improvement project and it was determined that The District used a contractor that did not pay prevailing wages. Cause: Inadvertent oversight by the District that it was believed the company was a sole proprietor and not subject to Davis Bacon Requirements, but the company was a corporation and therefore subject to Davis Bacon wage requirements. Effect: The District paid a contractor that did not follow Davis Bacon requirements. Questioned Costs: