Finding 604848 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-27
Audit: 34785
Auditor: Wipfli LLP

AI Summary

  • Core Issue: A contractor did not comply with the Davis-Bacon prevailing wage requirements for a project funded by the Education Stabilization Fund.
  • Impacted Requirements: Contracts over $2,000 must include Davis-Bacon clauses and require timely submission of certified payrolls.
  • Recommended Follow-Up: Ensure all contracts include Davis-Bacon clauses and establish procedures to verify payroll submissions before approving payments.

Finding Text

Federal program information: Funding agency: U.S. Department of Education Title: COVID-19 - Education Stabilization Fund AL number: 84.425D Award year and number: 2022-471659-DPI-ESSERFII-163 Criteria - Recipients and subrecipients that use Education Stabilization funds for minor remodeling, renovation, or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. Condition- One of the two contractors reviewed for this grant did not know about the Davis-Bacon prevailing wage requirement and did not submit certified payrolls. Cause- The District is responsible for overseeing the construction projects and did not include the Davis-Bacon prevailing wage requirement clauses in the contracts and did not follow up with the contractors to verify that they submitted certified payrolls in a timely manner. Effect- Eligible costs could be disallowed. Recommendation- We recommend that Davis-Bacon prevailing wage clauses should be included in construction contracts that utilize more than $2,000 of federal funding and the District should obtain and review the prevailing wage documentation in a timely manner. Management's Response- The District will work to establish procedures to include the Davis-Bacon prevailing wage requirement clauses in construction contracts that use federal funding. The District will also work on establishing procedures to verify that these contractors and subcontractors submit certified payrolls prior to approval of the invoices from the contractors and subcontractors for payment.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 28406 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $444,089
93.778 Medical Assistance Program $320,272
10.553 School Breakfast Program $274,460
84.010 Title I Grants to Local Educational Agencies $131,942
10.555 National School Lunch Program $77,879
32.009 Emergency Connectivity Fund Program $41,307
84.367 Improving Teacher Quality State Grants $32,783
84.173 Special Education_preschool Grants $17,670
84.424 Student Support and Academic Enrichment Program $7,159
84.048 Career and Technical Education -- Basic Grants to States $4,014
84.425 Education Stabilization Fund $3,476
10.556 Special Milk Program for Children $1,482