Finding 583069 (2023-004)

Federal Program COVID-19 Education Stabilization Funds (AL 84.425D, 84.425U) Special Tests – Wage Rate Requirements Criteria Uniform Guidance states “the contractor or subcontractor must submit to the nonfederal entity weekly, for each week in which any contract is performed, a copy of the payroll and statement of compliance (certified payrolls)”. Condition Three vendors whose construction projects were overseen by the District were missing signed contracts and did not have the required certified payrolls submitted. Questioned Costs None Context The District did not have signed contracts or certified payrolls from three contractors of the twelve selected for testing. Cause Oversight by management. Effect The District is not in compliance with the wage rate requirement. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure all construction contracts financed by federal assistance follow the wage rate requirements. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will review its procedures.