Finding Text
Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: COVID-19 Education Stabilization Fund Assistance Listing Numbers: 84.425U Federal Agency: U.S. Department of Education Federal Award Numbers: S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Test and Provisions CRITERIA All laborers and mechanics employed by contractors or subcontractors to work on construction contracts (including minor remodeling, renovation and repair) 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 The District did not determine whether laborers and mechanics employed by contractors or subcontractors to work on 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 District was unaware that a project completed during the year was subject to prevailing wage rate requirements. EFFECT The District could not demonstrate that prevailing wage rates were paid on all applicable projects during the year. CONTEXT The District did not obtain copies of certified payrolls for one project funded with federal grant monies. The project was for District-wide carpeting removal and installation of approximately $331,000. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review all federally-funded projects and determine which are subject to prevailing wage rate requirements. When applicable, the District should obtain certified payrolls from contractors and subcontractors to determine that prevailing wage rate requirements are met. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.