Finding Text
29 CFR ? 5.5 requires that 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. Due to the lack of an internal control over the awarding of contracts paid from Federal grants, the District issued a roofing contract in the amount of $252,548 of which approximately $100,000 was to be paid from the COVID-19 Education Stabilization Fund - AL 84.425 Federal grant, that did not require the payment of prevailing wages. During the fiscal year ended June 30, 2022 the District paid $25,000 from the COVID-19 Education Stabilization Fund - AL 84.425 Federal grant on this contract. Noncompliance with the requirements of Federal grants may result in the loss of current or future funding and possible questioned costs in future audits. The District should establish and implement policies and procedures for the issuance of contracts paid from Federal grants to ensure that such contracts in excess of $2,000 include the requirement to pay prevailing wages.