Finding Text
U.S. DEPARTMENT OF EDUCATION PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION COVID-19 AMERICAN RESCUE PLAN ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FUND - AL 84.425U PASS-THROUGH NUMBER 5504 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001. Equipment and Real Property Management Criteria or specific requirement: The Davis- Bacon Act requires all contractors and subcontractors performing on construction contracts in excess of $2,000, financed by Federal funds, to pay their laborers and mechanics not less than the prevailing wage rates as determined by the Department of Labor. Non-federal entities are to include in the applicable construction contracts a requirement that the contractor or subcontractor comply with the provisions of the Davis-Bacon Act and the Department of Labor regulations. Such requirements included the submission of weekly certified payrolls, for each week in which any contract work is performed, to the non-federal entities. Condition: The District paid a floor resurfacing company $202,775 to resurface floors throughout the district without obtaining a written contract that included the prevailing wage rate clause. Additionally, weekly certified payrolls were not submitted to the District. Effect: The District did not comply with the notification requirements regarding compliance with the Davis-Bacon Act and was unable to provide copies of weekly certified payrolls for workers paid on the project. Cause: The District was unaware the Davis-Bacon Act applied to this project. Context: Examined all payments/contracts for facility repairs and improvements, three in total. Recommendation: The District should ensure that all applicable construction contracts contain the required notification regarding compliance with the Davis-Bacon Act. Copies of the weekly certified payrolls should be obtained for the applicable projects. The District should also contact the Arkansas Division of Elementary and Secondary Education for further directives regarding this matter. Views of responsible officials: The District ensures that starting 2022-2023 school year that all applicable construction contracts will contain the required notifications regarding compliance with the Davis-Bacon Act. Copies of the weekly certified payrolls will be obtained for the applicable projects.