Finding 586075 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-24

AI Summary

  • Core Issue: The District failed to ensure that contractors paid laborers the required prevailing wage rates for federally funded construction projects.
  • Impacted Requirements: Noncompliance with special tests and provisions under federal regulations, specifically related to the Davis-Bacon Act.
  • Recommended Follow-Up: The District should review federal wage requirements, create clear policies, and implement procedures to ensure compliance moving forward.

Finding Text

Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Federal Agency: Arizona Department of Education Federal Award Number: S425D200038, S425U210038, S425W210003 Pass‐Through Agency: N/A Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC §§ 3141‐3144, 3146, and 3147). Condition It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The expenditures were originally not spent with Federal dollars but were later moved to a federal funding source via adjusting journal entry. As a result, the District did not inform the contractor/subcontractor of the wage rate requirements. Moreover, the District completed the ADE certifications indicating they would comply with Davis Bacon; however, they did not follow through. Effect The District did not comply with the special tests and provisions requirement of the grant. Context For one of two vendors where wage rate requirements were applicable, the District did not notify contractors and subcontractors of the requirements to comply with the wage rate requirements and did not obtain copies of certified payrolls for construction projects funded with grant monies. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.

Categories

Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 9625 2023-001
    Significant Deficiency Repeat
  • 9626 2023-001
    Significant Deficiency Repeat
  • 9627 2023-001
    Significant Deficiency Repeat
  • 9628 2023-001
    Significant Deficiency Repeat
  • 9629 2023-001
    Significant Deficiency Repeat
  • 9630 2023-001
    Significant Deficiency Repeat
  • 9631 2023-001
    Significant Deficiency Repeat
  • 9632 2023-002
    Significant Deficiency
  • 9633 2023-002
    Significant Deficiency
  • 586067 2023-001
    Significant Deficiency Repeat
  • 586068 2023-001
    Significant Deficiency Repeat
  • 586069 2023-001
    Significant Deficiency Repeat
  • 586070 2023-001
    Significant Deficiency Repeat
  • 586071 2023-001
    Significant Deficiency Repeat
  • 586072 2023-001
    Significant Deficiency Repeat
  • 586073 2023-001
    Significant Deficiency Repeat
  • 586074 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $2.09M
10.559 Summer Food Service Program for Children $1.68M
84.010 Title I Grants to Local Educational Agencies $932,312
84.027 Covid-19 Special Education_grants to States $489,414
10.555 National School Lunch Program $275,262
84.367 Improving Teacher Quality State Grants $165,446
84.048 Career and Technical Education -- Basic Grants to States $162,221
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $150,623
93.778 Medical Assistance Program $79,838
84.424 Student Support and Academic Enrichment Program $40,496
10.582 Fresh Fruit and Vegetable Program $36,284
84.365 English Language Acquisition State Grants $34,951
84.196 Education for Homeless Children and Youth $34,026
84.173 Special Education_preschool Grants $29,797
84.425 Covid-19 Education Stabilization Fund $25,773
12.357 Rotc Language and Culture Training Grants $9,838
84.173 Covid-19 Special Education_preschool Grants $3,706