Finding 609199 (2022-001)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-02-28
Audit: 28670
Auditor: Auditor General

AI Summary

  • Core Issue: The District failed to include required prevailing wage clauses and certified payroll submissions in construction contracts funded by Federal money.
  • Impacted Requirements: Compliance with the Davis-Bacon Act, which mandates that contractors pay prevailing wages and submit weekly payroll reports for projects over $2,000.
  • Recommended Follow-Up: Enhance procedures to ensure all Federally funded contracts include necessary clauses and verify receipt of certified payrolls.

Finding Text

Finding: District controls did not always ensure compliance with the Davis-Bacon Act for Federally funded construction projects exceeding $2,000. Criteria: The ESF provides Federal funds for school facility repairs and improvements to reduce the risk of virus transmission and exposure to environmental health hazards, and to support student health needs. Title 29, Section 5.5, Code of Federal Regulations (Davis-Bacon Act), requires the District to include prevailing wage rate clauses in any construction contract exceeding $2,000 that is financed either wholly or in part by Federal funds and ensure that contractors pay workers the prevailing wage rates established by the United States Department of Labor. This includes a requirement for the contractor to submit to the District weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The United States Department of Labor established ?prevailing wages? by geographic area and interprets the Davis-Bacon Act to apply to construction, alteration, or repair of public buildings or public work. Condition: During the 2021-22 fiscal year, the Board entered into four construction contracts totaling $464,323 for heating, ventilation, and air-conditioning (HVAC) renovation projects at the Bowling Green Elementary, Hardee Junior High, Hilltop Elementary, and Wauchula Elementary Schools. As of June 30, 2022, the District had expended ESF funds totaling $464,323 on the projects. Our examination of the project contracts disclosed that they did not contain prevailing wage rate clauses or require contractors to submit weekly certified payrolls. Also, according to District personnel, District procedures did not require them to verify that the contractors submitted certified payrolls. Subsequent to our inquiry, District personnel obtained certified payrolls for the projects from the HVAC contractors demonstrating that the prevailing wage rates were paid for these projects. Cause: District personnel indicated that the District typically complies with the Davis-Bacon Act for applicable Federally funded construction projects. However, because of oversights, the noncompliance occurred for these HVAC projects. Effect: Absent the required contract clauses and weekly certified payrolls, there is an increased risk that construction contractors paid with Federal moneys will not pay workers the prevailing wage rates established by the United States Department of Labor. Recommendation: The District should enhance procedures to ensure compliance with all Davis-Bacon Act requirements. Such procedures should ensure that applicable Federally funded facility contracts contain the prevailing wage rate clauses and require submittal of weekly certified payrolls and that District personnel verify the payrolls were received. District Response: We agree with the finding. We have implemented new procedures to ensure compliance with Davis-Bacon Act requirements on applicable Federally-funded projects.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32757 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.34M
10.555 National School Lunch Program $2.33M
84.011 Migrant Education_state Grant Program $652,992
10.553 School Breakfast Program $546,923
32.009 Emergency Connectivity Fund Program $368,000
84.367 Supporting Effective Instruction State Grants $255,944
84.424 Student Support and Academic Enrichment Program $141,563
84.358 Rural Education $123,291
84.048 Career and Technical Education -- Basic Grants to States $119,284
12.U01 Air Force Junior Reserve Officers Training Corps $68,344
10.559 Summer Food Service Program for Children $67,547
84.196 Education for Homeless Children and Youth $58,477
84.365 English Language Acquisition State Grants $46,387
84.173 Special Education_preschool Grants $31,922
84.027 Special Education_grants to States $7,749
84.002 Adult Education - Basic Grants to States $4,088
84.323 Special Education - State Personnel Development $2,028
84.425 Education Stabilization Fund $1,010
84.423 Supporting Effective Educator Development Program $970